How COVID-19 impacted our

economy
NAME –JAY SONI
ROLL NO – 2
SUBJECT - ECONOMICS
 NON BANKING
GDP
FINANCE

COVID-19 impacted our

economy

ECONOMIC
INDUSTRY INFRASTRUCTUR EMPLOYMENT
E
 GDP

INDIA'S QUARTERLY GDP WAS ESTIMATED TO GROW BY 0.4 PERCENT IN THE THIRD
QUARTER OF FINANCIAL YEAR 2021 COMPARED TO THE SAME QUARTER IN THE
PREVIOUS FISCAL YEAR. THIS WAS A SIGNIFICANT IMPROVEMENT FROM THE TIME
BETWEEN APRIL AND JUNE 2020, WHEN THE COUNTRY WENT INTO LOCKDOWN TO
CONTAIN THE VIRUS AND GDP GROWTH DECLINED BY NEARLY 25 PERCENT
COMPARED TO THE SAME TIME PERIOD IN THE PREVIOUS YEAR.
 INDUSTRY
THE ECONOMIC IMPACT OF THE 2019–20 CORONAVIRUS PANDEMIC IN INDIA HAS
BEEN HUGELY DISRUPTIVE.
MAJOR COMPANIES IN INDIA SUCH AS LARSEN & TOUBRO, BHARAT FORGE,
ULTRATECH CEMENT, GRASIM INDUSTRIES, ADITYA BIRLA GROUP AND TATA MOTORS
HAVE TEMPORARILY OR SIGNIFICANTLY REDUCED OPERATIONS.

STOCK MARKETS IN INDIA POSTED THEIR WORST LOSES IN HISTORY ON 23 MARCH

2020.
ECONOMIC INFRASTRUCTURE
EVEN THOUGH GROWTH IN THE CONSTRUCTION SECTOR SLOUCHED BETWEEN
2011 AND 2015 WITH DEMAND FOR CONSTRUCTION EQUIPMENT WITNESSING A
COMPLETE COLLAPSE, THE SECTOR MANAGED TO GROW POST-2015 AND THE
SIGNS WERE GOOD, UNTIL THE LOCKDOWN IMPOSED ACROSS THE COUNTRY
BROUGHT UNPRECEDENTED CHALLENGES, AND, IN MANY CASES, BUSINESS
CONTINUITY PLANS ARE BEING PUT TO TEST FOR THE FIRST TIME.
EMPLOYMENT
BILLIONS OF PEOPLE HAVE BEEN SUFFERING FROM THE IMPACT OF THE GLOBAL
PANDEMIC OF COVID-19. WHAT IS ALARMING IS THAT THE NUMBERS LIKELY
STEM FROM UNDER-REPORTING, AND MAY PROBABLY RISE ALARMINGLY IN THE
WEEKS AHEAD IF WE FACTOR IN ASYMPTOMATIC PATIENTS AND RAPID TESTS.
GIVEN THAT PANDEMIC-DRIVEN CRISIS IS CONSTANTLY CHANGING, COUNTRIES
ARE DESPERATE TO FLATTENING THE CURVE FOR COVID-19.
 NON-BANKING FINANCE

NON-BANKS LARGELY CATER TO THE SELF-EMPLOYED BORROWER SEGMENT IN

THE RETAIL SPACE, WHERE THE CASH FLOWS ARE EXPECTED TO BE MORE
VOLATILE IN THE CURRENT SITUATION VIS-À-VIS THEIR SALARIED
COUNTERPARTS. OTHER NON-BANKS (NON-RETAIL), WHICH MOSTLY HAVE
EXPOSURE TO ENTITIES OR SMES WITH RELATIVELY MODERATE RISK PROFILES,
ARE LIKELY TO WITNESS AN INCREASE IN THEIR CREDIT RISK IN THE CURRENT
SCENARIO.