Impact of Covid – 19 on the Indian Economy

The COVID-19 pandemic has had a significant negative influence on India, particularly on its
entire health systems, education, and economic activities. India's informal economic structure
has now suffered as a result of this dreadful predicament as a result of the country's
socioeconomic imbalances. Nowadays, hunger-related deaths and a high death toll due to
poor health infrastructure day by day, they're getting a lot bigger.

This pandemic issue has had a fatal impact on the lives of individuals in both urban and rural
areas. This illness is now completely disseminated from urban to rural areas. India's many
industries, resulting in a truly traumatic condition.

Indian Economy

Since the final year of 2019, India's (a developing market) economic situation has been in a
state of crisis (reduced to 4.9 percent ). According to economists, the demonetization effect in
November 2016 was a major factor in the economic downturn because it rendered 86 percent
of the economy's total money useless overnight. This has a negative influence on a variety of
emerging industries, cutting vehicle demand in India. India's tourism industry, which is
ranked 34th out of 140 countries, has also seen a decline in 2020. As a result, the general
lockdown effect was cruelled to small, medium, and large groups of people significant
businesses in the country, resulting in joblessness and economic decline predicament.

In the midst of the pandemic crisis, most enterprises, including Aditya Birla Group, BHEL,
Tata Motors, Bharat Forger, Ultratech Cement, and Grasim Industries, have temporarily
halted or drastically decreased their operations in India. Due to a lack of proper finance,
young enterprises have also been harmed. Many of the country's fast-moving consumer goods
companies have now severely decreased their operations.

GDP growth in percentage is a common way to measure a country's economic growth. The
world economy could develop at the same rate that it did in 2009, according to the
Organisation for Economic Co-operation and Development (OECD). India's GDP showed a
startling negative value of 23.9 percent, the lowest in the last 40 years. These are merely
official sector estimates; if we include informal sector estimates, the shrinkage will be far
worse. It is not only because of the lockdown, but also because of the impact of
demonetization and the implementation of GST.

Demonetization and GST have completely controlled the local market, particularly the
unorganised sector, and the unorganised sector as a whole has been severely impacted by this
pandemic. On the other hand, since the implementation of GST, most Indian states have been
experiencing financial difficulties as a result of reduced state tax revenue, and the COVID-19
pandemic has exacerbated the problem.
Furthermore, it is expected that state revenue will be reduced by 30% as a result of the
prolonged health crisis. The Indian economy is one of the fastest expanding in the world, but
this decline in GDP might push the country's position back 45 years.

India’s future on the world stage

Despite the virus's economic destruction, India's quick response has been impressive,
particularly as the country gathered to deal with a fatal second wave of the virus in early
2021. India was the first country to be affected by the deadly Delta variety, but it acted fast to
ensure that as many people as possible were protected. The vaccination has already been
given out in one billion doses.

India has acted in the best interests of the world by supplying medical supplies and
equipment to more than 150 countries around the world, as well as placing a critical supply of
the COVID-19 vaccine on the global market. Indeed, the pandemic offers an opportunity for
India to reflect on its potential as a global leader, particularly as it coincides with the
country's 75th anniversary of independence.

For years, India has provided critical treatments and medications to the global market, most
recently investing in the delivery of the COVID-19 vaccine to ensure global access.

Challenges

India is celebrating 30 years since its economy was deregulated, marking yet another key
turning point in its history and demonstrating the country's ability to reinvent itself.
Successive governments have focused on creating inclusive prosperity and self-sufficiency
for future generations, not simply for the current generation.

India's diplomatic endeavours on the international stage are guided by the principle of
vasudhaiva kutumbakam, which means "the world is one family." This is the kind of storey
the world requires at this point in history. India's plea for a revived and reformed
multilateralism is being heard by world leaders and policymakers.

Submitted By :

Name : Sreejayaa Rajguru

College : Hindu College, University of Delhi

Subject & Year : B.A. Philosophy (Hons), 3rd Year

Contact : 8638698348