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Modi Ji has declared a 21-day lockdown of the entire nation. The reaction to this statement is numerous. Few may be happy as they can enjoy being at home, but others angry, sad, frustrated, etc. The main group of people affected are daily wage workers and small business people. They cannot get a standard income, unlike an employee.
Let’s see the current relationship between the coronavirus and the Indian economy
Modi Ji has declared a 21-day lockdown of the entire nation. The reaction to this statement is numerous. Few may be happy as they can enjoy being at home, but others angry, sad, frustrated, etc. The main group of people affected are daily wage workers and small business people. They cannot get a standard income, unlike an employee.
Let’s see the current relationship between the coronavirus and the Indian economy
1. India before coronavirus
India’s limited presence in the global supply chain network helped India with only a marginal impact on its economy.
A sharp pickup in India’s business activity in January signaled momentum returning to Asia’s third-largest economy,
India’s GDP was growing in the range of 6 to 6.5 percent in 2020-21.
The Markit India Services PMI index climbed to 55.5 in January — the highest in seven years — from 53.3 in December.
1. India before coronavirus
India’s limited presence in the global supply chain network helped India with only a marginal impact on its economy.
A sharp pickup in India’s business activity in January signaled momentum returning to Asia’s third-largest economy,
India’s GDP was growing in the range of 6 to 6.5 percent in 2020-21.
The Markit India Services PMI index climbed to 55.5 in January — the highest in seven years — from 53.3 in December.
2. India after coronavirus
With a total of 4,45,815 corona cases and 19,786 deaths across the world, India shares 606 Cases with 10 deaths.
The business impact of the virus is already being felt in many parts.
More than 90 percent of India’s workforce is working in the unorganized sector where social security benefits and paid leave are not a choice.
Wages are low and there is little in the bank for people to fall back on.
The poor and the working-class are most affected due to weeks of layoffs and lockdowns during the coronavirus pandemic.
Coronavirus has so far affected India’s manufacturing and export sectors — notably medicines, electronics, textiles, and chemicals.
2. India after coronavirus
With a total of 4,45,815 corona cases and 19,786 deaths across the world, India shares 606 Cases with 10 deaths.
The business impact of the virus is already being felt in many parts.
More than 90 percent of India’s workforce is working in the unorganized sector where social security benefits and paid leave are not a choice.
Wages are low and there is little in the bank for people to fall back on.
The poor and the working-class are most affected due to weeks of layoffs and lockdowns during the coronavirus pandemic.
Coronavirus has so far affected India’s manufacturing and export sectors — notably medicines, electronics, textiles, and chemicals.
3. Government’s reaction
To boost the economy, the Finance Minister of India has laid down certain measures.
they are as follows
- There will be an extension of tax deadlines, easing business rules, and waiving off bank charges.
- 3-month Monetorium for payments of loan EMI’s.
- The finance minister announced that debit cardholders can now withdraw cash from ATMs of any bank free of charge, for the next three months.
- Minimum balance requirement has also been done away with for this period.
- Some Indian states like Uttar Pradesh and Kerala have announced small amounts of monetary assistance for the next month for the poor.
- And others like New Delhi have offered meals for the homeless at their night shelters.
- Tamil Nadu government has announced certain relief measures for their people. They will award ₹1,000 to all ration cardholders in the state.
- In addition to this, people would also be provided free rice, sugar, and other essential commodities.
3. Government’s reaction
To boost the economy, the Finance Minister of India has laid down certain measures.
They are as follows
- There will be an extension of tax deadlines, easing business rules, and waiving off bank charges.
- 3-month Monetorium for payments of loan EMI’s.
- The finance minister announced that debit cardholders can now withdraw cash from ATMs of any bank free of charge, for the next three months.
- Minimum balance requirement has also been done away with for this period.
- Some Indian states like Uttar Pradesh and Kerala have announced small amounts of monetary assistance for the next month for the poor.
- And others like New Delhi have offered meals for the homeless at their night shelters.
- Tamil Nadu government has announced certain relief measures for their people. They will award ₹1,000 to all ration cardholders in the state.
- In addition to this, people would also be provided free rice, sugar, and other essential commodities.
4. Bottomline
The government of India is taking all necessary steps to ensure that we are prepared well to face the challenge and threat posed by the growing pandemic of COVID 19 – the Corona Virus.
With the active support of the people of India, we can contain the spread of the virus in our country.
Indian markets should respond favorably once the dust settles.
Stay happy, Stay Healthy!!!
4. Bottomline
The government of India is taking all necessary steps to ensure that we are prepared well to face the challenge and threat posed by the growing pandemic of COVID 19 – the Corona Virus.
With the active support of the people of India, we can contain the spread of the virus in our country.
Indian markets should respond favorably once the dust settles.
Stay happy, Stay Healthy!!!