Art, asked by soniakyndait, 8 months ago

Economy impact due to covid 19

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Answered by sravanthimedam999
5

Answer:

The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. The World Bank and rating agencies had initially downgraded India's growth for fiscal year 2021 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. 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 FY21.

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Answered by rohitking92
1

The economic impact of the 2020 coronavirus pandemic in India has been largely disruptive. The World Bank and rating agencies had initially downgraded India's growth for fiscal year 2021 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. 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 FY21.

Economic impact of the COVID-19 pandemic in India

IMF World Economic Outlook April 2020 Real GDP growth rate (map).svg

Map showing real GDP growth rates in 2020, as projected by the IMF.

Date

March 2020 – present

Type

Global recession

Cause

COVID-19 pandemic-induced market instability and lockdown

Outcome

Sharp rise in unemployment

Stress on supply chains

Decrease in government income

Collapse of the tourism industry

Collapse of the hospitality industry

Reduced consumer activity

Plunge in fuel consumption. Rise in LPG sales.

Within a month, unemployment rose from 6.7% on 15 March to 26% on 19 April.[1] During the lockdown, an estimated 14 crore (140 million) people lost employment.[1] More than 45% of households across the nation have reported an income drop as compared to the previous year.[2] The Indian economy was expected to lose over ₹32,000 crore (US$4.5 billion) every day during the first 21-days of complete lockdown, which was declared following the coronavirus outbreak.[3][4] Under complete lockdown, less than a quarter of India's $2.8 trillion economic movement was functional.[5] Up to 53% of businesses in the country were projected to be significantly affected.[6] 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.[7] Those in the informal sectors and daily wage groups are the most at risk.[8] A large number of farmers around the country who grow perishables are also facing uncertainty.[7] Various businesses such as hotels and airlines, are cutting salaries and laying off employees.[9]

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 have temporarily suspended or significantly reduced operations. Young startups have been impacted as funding has fallen

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