IMPACT OF LOCKDOWN ON INDIAN ECONOMY

IMPACT OF LOCKDOWN ON INDIAN ECONOMY

INTRODUCTION

Corona virus was firstly founded in Wuhan (china) this virus is come from bats, snakes and other insects. Coronavirus causing illness from respiratory syndrome. this virus in firstly founded in 2019. When it spread vastly in India our hon’ble prime minister took an action to get relief from this disease by the mode Of junta curfew and lock down which cause a bad effect on the economy of India .

PURPOSE 

It is unkind reality that we are now a decade old in the liberalized globalization era. The changes in the economy after liberalization and globalization process initiated since 1991 in India have impacted extremely the financial system.             

                         

SUBJECT MATTER

According to a survey of BCC news, after lockdown from 24 march till now India’s economy is affected by 7-8 lac crore till now which is a huge deficit in the Indian economy. 

            

This occur due to the shut down of industries hostel and other MNCs these sectors are the main sector through which income is generated. lockdown 1 & lockdown 2 are the great steps which are taken by the respected prime minister to get rid from this virus. but this will impact harshly on Indian economy  

THE MAIN SECTOR THROUGH WHICH INCOME IS GENERATED ARE :-

1. Hotels 
2. Mnc’s
3. Industries 
4. Railways 
5. Import & export 
6. Public transport etc.

                             

• With the shut down of these sectors Indian economy will fall down to 7-8 lac crore till now analytical and industrial bodies said. 
• The general secretary of all India motor transport congress(AIMTC) Naveen Gupta  said that accumulated losses to truckers during the first 15 days of lockdown were about Rs 35,200 crore given an average  loss of truck per day is 2200 Rs. 
• A loss of Rs. 1000 crore is suffered by real estate business in the period of lockdown 
• The educational sector also suffered a heavy loss with empty campuses face .

                                   

IMPACTS: 

       

1)Slowdown in domestic demand. Due to less purchasing power.

2)Less purchasing power of customer due to lack of availability of money.

3)Losses of job due to lockdown situation.

4)Lower demand of commodities like. Oil gas & metals.

5)Fall down in GDP due to shutdown of various sector which generate income.

ACTION TAKEN

1. Companies should provide work from home.so the work will be done in continuity and there are less chances of losses to the companies
2. All Indian manufactured products are purchased by people of India. Due to which the GDP is intended to rise and only good quality product are purchased 
3. There is restriction on imports of goods from other countries. Through which a lot of money is kept in India which is being used in another sector for the improvement of product 
4. There should be e-learning courses provided by the education sectors. So that there is continuity in the examination patterns and study is not affected .
5. More and more Small scale industries are set up .Due to which production is done more and more and there is less need of import of goods from other countries 

CONCLUSION

Seeing todays condition we must take precaution directed by the health organisation to get rid of this novel coronavirus. Since it impact harshly on the Indian economy . To grow the economy by taking some corrective action are taken. Since it’s a difficult task but not an impossible task to grow the economy. We must not panic or get frighten when all the citizen united can fight against  this situation with ease.

AUTHOR:

KARAN POPLI

(49190333, MBA 2nd SEM)