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Wednesday, September 7, 2022

A Paragraph on Effects Of Lockdown On Indian Economy: Essay on Effects Of Lockdown On Indian Economy (100, 200, 250, 300 Words) in English

 

A Paragraph on Effects Of Lockdown On Indian Economy: Essay on Effects Of Lockdown On Indian Economy (100, 200, 250, 300 Words) in English
A Paragraph on Effects Of Lockdown On Indian Economy: Essay on Effects Of Lockdown On Indian Economy (100, 200, 250, 300 Words) in English

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Effects Of Lockdown On Indian Economy

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Paragraph on Effects Of Lockdown On Indian Economy or Essay on Effects Of Lockdown On Indian Economy

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Paragraph on Effects Of Lockdown On Indian Economy in 100-150 Words / Essay on Effects Of Lockdown On Indian Economy in 100 Words

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The year 2020 came with a new crisis named as COVID-19. It was a deadly virus that affected both lives and material damage. Actually, material damage was the result of the majors taken during this crisis. WHO also claimed this virus as an epidemic. It has badly affected the world. America the superpower was found helpless in this epidemic. Similarly, the entire world is also facing economic crises. The Indian economy has also fallen on its knee. The sharp decrease in GDP is continuously alarming towards the falling economy.

Not only small-scale industries but all kinds of industries are facing loss. Many of us also lost their jobs in this crisis. No one ever expected anything like this so we were not even ready. If things would be planned before I don’t think the loss would be of so huge. It was implemented within a night as a result no one got time to think. I believe if this lockdown would be planned properly then the rate of crises would be not as big as they are today.

At present the Indian GDP is 3.1 % and it was 5.85% in the year 2019. And it is also marked as one of the lowest in the last 11 years. Although the lockdown has been removed it will take years to cover this loss.


Paragraph on Effects Of Lockdown On Indian Economy in 200-250 Words / Essay on Effects Of Lockdown On Indian Economy in 200 Words

Students can find below a paragraph of Effects Of Lockdown On Indian Economy in 200-250 words or essay on Effects Of Lockdown On Indian Economy in 200 words:


Indian Economy is alarming a nationwide crisis due to the lockdown. Although there was a decrease in the community spread of COVID-19 during lockdown it was unplanned.

The demand-supply chain plays a very important role in developing an economy. The sudden pause on the urban activities causes a sudden fall in non-essential goods. Once the domestic supply chain is interrupted it directly affects the supply of essential commodities.

What are the Potential Impacts of Lockdown on Various Sectors?

Fabric & Textile Industries: Manufacturing, supply, and import was directly affected. The import of fabric from China and other countries was paused and now there is a sharp increase in their price. Due to this textile industries are facing a huge loss.

Auto Mobile Industries: The passenger vehicle, commercial vehicles, and all other automobile industries are facing loss due to the unavailability of auto components and non-essential goods.

Tourism & Aviation: This industry is facing higher than expected loss. The travel industry earing next to zero and this will continue for some more years. Although the situation will settle soon, still there is a fear among people and it will take some time for this industry to grow again.

Real Estates & Construction Sites Business: Due to lower demand and the barred construction services are facing higher losses. People do not have the money to match their day-to-day needs and in this scenario, very few people will focus on real estate.

Similarly, almost every sector is facing a kind of economic crisis. Only the initiative funding by government and state government will help people to cope with this huge loss. The Indian economy has been badly affected by this lockdown and this will result in inflation.


Paragraph on Effects Of Lockdown On Indian Economy in 300 Words / Essay on Effects Of Lockdown On Indian Economy in 300-500 Words

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The economic impact of the COVID-19 pandemic in India has been largely disruptive. India's 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 coronavirus 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 to India's economic outlook".

The World Bank and rating agencies had initially revised India's growth for FY2021 with the lowest figures India has seen in three decades since India's economic liberalization in the 1990s. However, after the announcement of the economic package in mid-May, India's GDP estimates were downgraded even more to negative figures, signalling a deep recession. (The ratings of over 30 countries have been downgraded during this period.) On 26 May, CRISIL announced that this will perhaps be India's worst recession since independence. State Bank of India research estimates a contraction of over 40% in the GDP in Q1. The contraction will not be uniform, rather it will differ according to various parameters such as state and sector. On 1 September 2020, the Ministry of Statistics released the GDP figures for Q1 (April to June) FY21, which showed a contraction of 24% as compared to the same period the year before.

According to Nomura India Business Resumption Index economic activity fell from 82.9 on 22 March to 44.7 on 26 April. By 13 September 2020 economic activity was nearly back to pre-lockdown. Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to pre-lockdown levels by mid-June. During the lockdown, an estimated 140 million (140 million) people lost employment while salaries were cut for many others. More than 45% of households across the nation have reported an income drop as compared to the previous year. The Indian economy was expected to lose over ₹32,000 crore (US$4.0 billion) every day during the first 21-days of complete lockdown, which was declared following the coronavirus outbreak. Under complete lockdown, less than a quarter of India's $2.8 trillion economic movement was functional. Up to 53% of businesses in the country were projected to be significantly affected. Supply chains have been put under stress with the lockdown restrictions in place; initially, there was a lack of clarity in streamlining what an "essential" is and what is not. Those in the informal sectors and daily wage groups have been at the most risk. A large number of farmers around the country who grow perishables also faced uncertainty.


Vendor of greens, essential supply chains and logistics. Life under lockdown. Bangalore spring 2020.
Major companies in India such as Larsen & Toubro, Bharat Forge, UltraTech Cement, Grasim Industries, Aditya Birla Group, BHEL and Tata Motors temporarily suspended or significantly reduced operations. Young startups have been impacted as funding has fallen. Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials. Stock markets in India posted their worst losses in history on 23 March 2020. However, on 25 March, one day after a complete 21-day lockdown was announced by the Prime Minister, SENSEX and NIFTY posted their biggest gains in 11 years.


Indices: S&P BSE 500 (January 2015 to November 2020). Blue highlight reflects COVID-19 period (taken to start from March 2020 as per first lockdown).
The Government of India announced a variety of measures to tackle the situation, from food security and extra funds for healthcare and for the states, to sector related incentives and tax deadline extensions. On 26 March a number of economic relief measures for the poor were announced totaling over ₹170,000 crore (US$21 billion). The next day the Reserve Bank of India also announced a number of measures which would make available ₹374,000 crore (US$47 billion) to the country's financial system. The World Bank and Asian Development Bank approved support to India to tackle the coronavirus pandemic.

The different phases of India's lockdown up to the "first unlock" on 1 June had varying degrees of the opening of the economy. On 17 April, the RBI Governor announced more measures to counter the economic impact of the pandemic including ₹50,000 crore (US$6.3 billion) special finance to NABARD, SIDBI, and NHB. On 18 April, to protect Indian companies during the pandemic, the government changed India's foreign direct investment policy. The Department of Military Affairs put on hold all capital acquisitions for the beginning of the financial year. The Chief of Defence Staff has announced that India should minimize costly defense imports and give a chance to domestic production; also making sure not to "misrepresent operational requirements".

On 12 May, the Prime Minister announced an overall economic stimulus package worth ₹20 lakh crore (US$250 billion). Two days later the Cabinet cleared a number of proposals in the economic package including a free food grains package. In December 2020, a Right to Information petition revealed that less than 10% of this stimulus had been actually disbursed. By July 2020, a number of economic indicators showed signs of rebound and recovery. On 12 October and 12 November, the government announced two more economic stimulus package, bringing the total economic stimulus to ₹29.87 lakh crore (US$370 billion). By December 2021, India was back to pre-COVID-19 growth.

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