Blog : Devastating Effect of Coronavirus on the Economy of India

India is one of the fastest developing financial sectors of the world. Due to coronavirus from the previous two months, a significant hit to India s GDP drove down its development by 0.2 percent. India is among the fifteenth nation whose economy got influenced severely. However, due to some essential and significant steps by the government, it somehow managed to sustain itself in the global market.

According to Moody s, the GDP growth of the financial year 2021 of India estimated at around 6.5 percent. But due to the sudden pandemic situation, it is expecting to be about 5.2 percent. Major countries like the United States, UK, and China are some of the top affected countries from the coronavirus and are more affected than India.

The coming year will prove to be a challenging year for India. According to economists, the following year will face a hard phase for the manufacturing and production sector. The finance minister of India has announced that the government will provide relief packages and introduce a policy to heal the engineering sectors for sustainability.

Above all, the most affected ones of the nation are the daily wage laborers, small businessmen, saloons, and the medium class. It is reported that many MNC s and Branded companies will release their employees as they are no longer able to bear the burden.

The government has stated that they are making policies and will provide relaxation on taxes to hold the jobs in India. India is already suffering from an unemployment situation, which has now increased by up to 26 percent by April 19, 2020. A slow rate of growth can be expected from manufacturing, packaging, and the retail sectors by the end of the year.

As soon as the deaths and patients affected by the virus can be controlled, a better tomorrow is possible. Many engineering industries are already planning to move out of China and searching to settle down in nearby countries like Vietnam, India, and Thailand. So, let us hope for the best.