The Coronavirus pandemic has devastated the lives of people across the world. India’s economy, which was growing rapidly, has fallen flat.
Tens of millions of people were coming out of poverty, megacities and smart cities were being built, India’s strength was growing and it was poised to become an economic superpower.
But due to the economic conditions that have been created throughout the country, the concern has increased manifold. The Indian economy has shrunk faster than any other country. According to the report published in the New York Times, some estimates say that about 20 million people may again go into poverty. Most experts are blaming this loss on lockdown. If the situation does not improve then the economy will collapse.
What is the condition of the country’s economy, you can see it in the textile mills of Surat? In factories that took generations to erect, production is now 1/10 of what it was before. Families who used to give finishing touches to sarees are now forced to sell vegetables and milk. Be it mobile phone shops or some other store, markets are empty everywhere. Indian economy shrank by almost 24% in the last quarter while China is growing again. Economists even say that India can also lose the pride of being the 5th largest economy in the world (after America, China, Japan, Germany).
Also read: How World Economy is Affecting by Coronavirus?
Corona increased India’s woes
The experts say that the lockdown by Prime Minister Narendra Modi was strict but it had many flaws. Not only did it damage the economy, but the virus also spread rapidly. Corona cases are increasing rapidly in India and more than 90 thousand new cases are coming in one day. The country’s economic situation was already deteriorating.
Former World Bank Chief Economist Kaushik Basu said, “The slowdown in the second quarter of 2020 is almost entirely due to the nature of the lockdown. It would have been beneficial if the Pandemic had come under control, but it did not.” The fear of becoming infected with the virus remains intact even after lockdown.
Also read: India Faces 23.9% Contraction In GDP, Worst In Past 40 Years
According to the Google Mobility report, 39% fewer people are leaving in unlock than before the pandemic. The Modi government announced $260 billion of emergency aid, but it did not benefit the poor much. Some states do not even have the money to pay to health workers. Government debt is approaching the highest level in the last 40 years.