Write an big essay on 'Impact of covid-19 on indian economy'
Answers
Explanation:
The impact of coronavirus pandemic on India has been largely disruptive in terms of economic activity as well as a loss of human lives. Almost all the sectors have been adversely affected as domestic demand and exports sharply plummeted with some notable exceptions where high growth was observed. An attempt is made to analyze the impact and possible solutions for some key sectors.
FOOD & Agriculture
Since agriculture is the backbone of the country and a part of the government announced essential category, the impact is likely to be low on both primary agricultural production and usage of agro-inputs. Several state governments have already allowed free movement of fruits, vegetables, milk etc. Online food grocery platforms are heavily impacted due to unclear restrictions on movements and stoppage of logistics vehicles. RBI and Finance Minister announced measures will help the industry and the employees in the short term. Insulating the rural food production areas in the coming weeks will hold a great answer to the macro impact of COVID-19 on Indian food sector as well as larger economy.
Hie Mate ✌️
In response to the biggest economic crisis since 1979 triggered by the Covid-19 pandemic and the subsequent 54-day lockdown – one of the harshest in the world, the Central government’s fiscal relief so far is limited to just about 1.1% of GDP. It has, however, allowed states to increase their borrowing limit unconditionally by 0.5% of their Gross State Domestic Product (GSDP) or Rs 1.07 lakh crore.
A chunk of the Centre’s fiscal relief – Rs 40,000 crore or 0.2 per cent of GDP – has come as additional allocation to MGNREGA over and above the Budget Estimate of Rs 61,500 crore in the fifth and final tranche of the Atmanirbhar package announced by Finance Minister Nirmala Sitharaman on Sunday.
Much of the May 12 Atmanirbhar package of Prime Minister Narendra Modi totaling Rs 20 lakh crore and elaborated over the last five days by Sitharaman has been liquidity driven, with little burden on the exchequer. The government also took this opportunity to re-package some of the old measures, and push some new reforms such as in agriculture, public sector enterprises, which has been pending for long.
The money that the poor got in their hands over the last two months following the Central government announcements has been just Rs 33,176 crore so far, Finance Minister Sitharaman said. This includes Rs 10,025 crore to women Jan Dhan account holders, Rs 16,394 crore to
The farmers under PM Kisan Yojana (frontloading of payment without additional fiscal cost), Rs 2,807 crore to old persons, widows and the disabled, and Rs 3,950 crore to construction workers (also without any fiscal outgo since it is paid from the Building and Construction Workers’ Cess Welfare Fund).