WHAT IS COVID-19?
Coronavirus disease (COVID-19) is an infectious disease caused by a newly discovered coronavirus. Most people fall sick with Covid-19 will experience mild to moderate symptoms and recover without special treatment. But in some severe cases the patient needs to be under special care and has to undergo several painful treatments, even then there remains no faith for the family or the victim. Covid-19 recession economy impact Indian economy.
This is the general definition we will get when we seek the automated search engine, for any lethal information on the world-famous virus, but that is not the whole truth. Mortality is not the only thing that the virus uses as a key tool, there are people who suffer because of great downfall in economy. There is a saying, ‘Rich becomes the richer; poor becomes the poorer’. The current situation has proved it wrong, as every single soul that is now struggling in the world to make a living is greatly affected by the economic loss that is caused by Covid-19.
The past seven months have been hectic for our country. Needless to say, the whole world is under the spell that was caused by the virus and it has left none unaffected, be it medically or economically. The Covid-19 pandemic is a global shock, that the world has never faced in all its years of existence, involving simultaneous disruptions to both supply and demand in an interconnected world economy.
LOSS OF SUPPLY
On the supply side, the infections caused by Covid-19 have caused a major reduce in labor supply. Many labors fear for the spread of the infections, while the others are already a victim to the human made lethal virus. The reduction in labor supply has affected the productivity, which in turn affects the sales. Business closures due to lockdown and social distancing is also a major cause for the economic loss that is dancing inside the suppliers’ heads.
LOSS IN DEMAND
While we look from the demand side, people are suffering so much due to unemployment, quarantine, morbidity and layoffs. The worsened economic prospects have also reduced the household consumption, and people don’t have the money to order lavish pizza, while they are struggling to pay for their electric bills. The uncertainty that is cause due to the drag in lockdowns and the rise in pandemic has also left them confused and disheveled.
Every region is subject to substantial growth downgrades. East Asia and the Pacific will grow by a scant of 0.5%. south Asia will contract by 2.7%, central Asia by 4.7% and Latin America by 7.2%. these downturns are expected to reverse year of progress toward development goals and tip tens of millions of people back into extreme poverty. This is a report given by a popular online magazine. The thing that all of us fear is poverty. The growth that the world has so graciously had is now put into a spin wheel full of down turns and infections that it has become a question, whether the world will gain its glory back or not. Even if it does, the new world will be built upon hundreds of thousands of deceased people, some due to Covid-19 and some due to the poverty caused by it.
Recession is a period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters. The whole world is under recession now, except maybe a very few newly industrialized economic countries. The Covid-19 pandemic has caused a major economic downfall and is also expected to plunge most countries into major recession in 2020, with per capita income contracting in the largest fraction of countries globally since 1870.
If the cause for this major down fall were to be controlled, it would be very easy for the stock market to gain some support or anchor that could probably help to uplift the Indian economy. But that is not the case. The situation will not come under control, unless and until we find a vaccine to it. Its is like the whole economy is tightly bound by an invisible rope called recession that is caused due to the pandemic and the more we try to free it the more we end up tightly bound.
Tourism which provides 9.7% to the GDP has had a major downfall, followed by lockdown and quarantine. It is not only the tourism department that has faced this, almost all the other industries such as oil industry, import and export, foreign exchange has also faced a similar major downfall in reference to the protective measures taken to keep Covid-19 at bay. Covid-19 recession economy impact Indian economy.
Indian economy has had a major undoing, and the monstrous spread of Covid-19 is the major reason for it. We have millions of customers and many prolific benefactors, but the consumers are mostly middle-class people, as three fourth of our economy is built of them. Unemployment, being the major reason for the suffering of middle-class people and they are social distancing themselves from all the meagre expenses they once used to enjoy.
The rate with which we were flourishing, it was expected from the already well-developed countries that we will reach that phase in 2020. But the sudden arrival of the popular yet deadly virus has succeeded in ceasing our growth, almost immediately after its unwanted and unwarned arrival. Over Population is one of the main reasons, we have a rapid growth rate in the number of victims when compared to the other countries.
It is proved that India is the youngest nation in the world. 67% of our nation’s population consists of many young minds that could possibly be the next Kalam, or Kalpana Chawla. But the rise Covid-19 has slowly started crushing the hope and dreams of those young and unique minds, as they are struggling to earn bread for their baskets and thinking of the nation’s growth has become a question hanging in the far away corridor, where no lazy mind will consider venturing for its development.
It is true that what we are now facing is something none of our ancestors would have assumed or wished for it to happen. But we are way brighter and more courageous than them and we will surely come back with more confidence and immune strength to conquer the invisible global foe, called as Covid-19. Covid-19 recession economy impact Indian economy.
- Devimanju Mohan.
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