write a couple of paragraph about covid -19 and its consequences
Answers
Explanation:
Many economists and other experts have expressed their views about the overall effect of Coronavirus on economy and industry. Most reports seem to be painting a gloomy picture because of this two week lockdown that in all likelihood will be extended by another two weeks. There is no doubt that there will be a dip in all economic indicators. Nobody can argue on that front. Longer the lockdown more will be the time required for economy and industry to bounce back. But it may be incorrect to assume that Indian economy will be in dire straits.
It may be prudent here to understand a few basic truths about Indian economy. Large part of Indian economy is rural based and is hardly affected as of now. The drastic fall in international oil prices augers well for government and will help to keep inflation in check. Nation’s internal consumption will remain buoyant and our huge young population is better placed to see through this Corona pandemic. Interest rates are at all time low which augers well for businesses. Steep fall in stock markets is more because of market sentiment and not due to any such fall in economy in last two weeks. Once things start getting normal, the same markets will bounce back in quick time. On the flip side, new investments may be deferred while some small and micro businesses may have to shut down.
White goods and automobile sectors will certainly see a lower demand going forward that may continue till the year end. Buyers’ priorities will undergo a change and such luxuries will be on the hit list for some time. There will be pain for some export oriented industries as orders may be scarce and delayed by buyers abroad. Construction and real estate sector that was already in trouble will continue to remain depressed with no signs of revival in foreseeable future. Heavy industries sector, comprising of steel, cement and mining, is another area that will possibly be hit in the short-term. Construction activity in private sector will take time to pick up and many government projects may be put on hold because of the heavy non-budgeted expenditure in fighting Coronavirus battle and other relief measures.
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