Consequence of COVID-19 on Our Economy

We all are suffering from this pandemic and are house arrest from like a month hoping for cure and change of scenario but looking at after effect the world is moving towards another big problem bigger than 2008 recession or i can say bigger than all  33 recessions since 1854 combined.

The consequence of Coronavirus on the Indian Economy

The large the extent of coronavirus will affect the Indian industry. There is a huge dependence on Indian trade on china. China plays the most important role in trading with India. India imports most of the products from China as compared to other countries. China is the world largest exports as well as importers in the trade markets. The trade of account of china is 13% in world exports as well as 11% of world imports .Electronic imports account of India from china is 45%. A large quantity of machinery and the organic chemical, as well as 25% of fertilizers, is an import from china. 67.5% ingredients of the pharmaceutical and 90% of mobile phone import from china to India. Hence, because of the outbreaks of COVID-19 will impact on the Indian industry.

The result of COVID-19 in the industry is moderate.

According to the report of CLSA, the pharma, electronics and chemicals businesses companies may suffer the issue of supply-chain as well as the changes in 10% prices it will increase. It also states that India can also be a recipient flow of positive as it seems to be the market with the least effects. Few products, like upstream, metals, and downstream oil corporations, can recognize the consequence of global demand affecting goods prices.

If strict action not be taken immediately GDP can fall 5% according to CII in 2021. It is also stated that the government should take some strong financial incentives for the poor up to 1% of GDP, which will support poorer financially and also maintain consumer demand.

The growth the rate has come down to 4.7% in the third quarter (October-December) and the impact of coronavirus will be noticed further in the fourth quarter.

A FICCI the review revealed that 53% of Indian businesses symbolized a marked effect of coronavirus on business functions. Plus 42% of the respondents stated that it may take almost three to four months to recover to normalcy.