Covid-19 has checked the economic growth of India. Write an article on The effects of Covid-19
Answers
The onset of COVID-19 halted all social and economic activity. The impact on affected industries such as aviation, tourism, retail, capital markets, MSMEs, and oil is the focus of this study. International and internal mobility are restricted, and income from travel and tourism, which account for 9.2% of GDP, will have a significant impact on GDP growth. Revenues from aviation will drop by USD 1.56 billion. In March, oil fell to an 18-year low of $ 22 a barrel, and Foreign Portfolio Investors (FPIs) withdrew massive sums from India, totaling USD 571.4 million. Lower oil prices will help to reduce the current account deficit, but reverse capital flows will widen it. The rupee is steadily losing value. MSMEs will face a severe cash shortage. During the crisis, a terrifying mass departure of such roving populations of migrants on foot occurred, despite a statewide curfew. Their main concerns were job loss, daily rationing, and the lack of a social safety net. India's development paradigm has to be rethought and made more inclusive. COVID 19 has also presented India with some unique prospects. Multinationals are losing faith in China, and there is a chance to join in global supply chains. Some reforms are required to 'Make in India,' one of which is labour reform.
Answer:
The outbreak of COVID-19 brought social and economic life to a standstill. In this study the focus is on assessing the impact on affected sectors, such as aviation, tourism, retail, capital markets, MSMEs, and oil. International and internal mobility is restricted, and the revenues generated by travel and tourism, which contributes 9.2% of the GDP, will take a major toll on the GDP growth rate. Aviation revenues will come down by USD 1.56 billion. Oil has plummeted to 18-year low of $ 22 per barrel in March, and Foreign Portfolio Investors (FPIs) have withdrawn huge amounts from India, about USD 571.4 million. While lower oil prices will shrink the current account deficit, reverse capital flows will expand it. Rupee is continuously depreciating. MSMEs will undergo a severe cash crunch. The crisis witnessed a horrifying mass exodus of such floating population of migrants on foot, amidst countrywide lockdown. Their worries primarily were loss of job, daily ration, and absence of a social security net. India must rethink on her development paradigm and make it more inclusive. COVID 19 has also provided some unique opportunities to India. There is an opportunity to participate in global supply chains, multinationals are losing trust in China. To ‘Make in India’, some reforms are needed, labour reforms being one of them.
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Explanation:
The outbreak of COVID-19 brought social and economic life to a standstill. In this study the focus is on assessing the impact on affected sectors, such as aviation, tourism, retail, capital markets, MSMEs, and oil. International and internal mobility is restricted, and the revenues generated by travel and tourism, which contributes 9.2% of the GDP, will take a major toll on the GDP growth rate. Aviation revenues will come down by USD 1.56 billion. Oil has plummeted to 18-year low of $ 22 per barrel in March, and Foreign Portfolio Investors (FPIs) have withdrawn huge amounts from India, about USD 571.4 million. While lower oil prices will shrink the current account deficit, reverse capital flows will expand it. Rupee is continuously depreciating. MSMEs will undergo a severe cash crunch. The crisis witnessed a horrifying mass exodus of such floating population of migrants on foot, amidst countrywide lockdown. Their worries primarily were loss of job, daily ration, and absence of a social security net. India must rethink on her development paradigm and make it more inclusive. COVID 19 has also provided some unique opportunities to India. There is an opportunity to participate in global supply chains, multinationals are losing trust in China. To ‘Make in India’, some reforms are needed, labour reforms being one of them.
Keywords