By: Astha Raghav.
The current economic conditions of the COVID-19 pandemic in India has been largely disruptive. India growth in the fourth quarter of the fiscal year 2020 went down to 3.1% according to the Ministry of Statistics. The Chief Economic adviser to the Government of India said that this drop is mainly due to the corona virus pandemic effect on the Indian economy Notably India had also been witnessing a pre- pandemic slowdown, and according to the World Bank, the current pandemic has "magnified pre- existing risks India's economic outlook ". Manufacturing and the urban economy had come to a grinding halt while the rural economy continued to move because of less strict lockdown. While the lockdown took a toll on the economy, the number of infection cases continues to climb with growth prospects for the current quarter collapsing. The country's lockdown began in late March and was subsequently extended several time. Stringent restrictions halted most economic activities and caused millions of people, many of them daily wage earners, to lose their jobs and revenue streams. To mitigate the economic fallout, Prime Minister Narendra Modi's government had announced a $266 billion support package containing both fiscal and monetary measures, said to becworth around 10% of India's GDP. b
But economists have said the package will do little to stimulate growth, as it includes very little planned government spending and benefits of several measures are expected to only be seen in the medium term. While the impact on India GDP for the current quarter will not be known for a few more months.
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