Effect Of Lockdown On Economy

Education News | Apr-27-2022

Effect Of Lockdown On Economy

The Covid- 19 (Coronavirus) pandemic has changed the course of our lives. Its impact is fell all spheres of our life. As the pandemic calls for unprecedented steps such as lockdown, economic activities have declined. The Indian economy was inching towards a slowdown even before the pandemic, with plummeting growth rates, and effective demand was low. The Indian economy has some inherent problems which further got aggravated by the pandemic.

Every sector of our economy has felt the impact of covid- 19. After India's economy collapsed in the first quarter of 2020-2021 following the Nationwide lockdown imposed to curb the covid-19 pandemic, some economic indicators, from September and October from power- consumption to GST collection suggest that things are improving. The impact of the lockdown on the economy was in several ways:

(1) Unemployment rose from 6.7% on 15th March to 26% on 19th April and then back down to the pre-lockdown level in mid-June.

(2) During the lockdown estimated 14 crores (140 million) people lost employment while salaries were cut for many others.

(3) More than 45% of households across the nation have reported an income drop as compared to the previous year.

(4) The Indian economy was expected to lose over rupees 32, 000 crore (US dollar 4.5 billion) every day during the first 21- day of complete lockdown, which was declared following the Coronavirus outbreak.

(5) Under complete lockdown less than a quarter of India's $ 2.8 trillion economic movements was functional.

(6) Up to 53% of the businesses in the country were projected to be significantly affected.

(7) Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials, stock markets in India posted their worst losses in history on 23rd march 2020.

By : Parth Aggarwal
S. D. Public School

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