Corona’s impact on the Indian economy.

By adminblog

A sharp pickup in India’s business activity in January 2020 signaled momentum returning to Asia’s third-largest economy. Due to the coronavirus outbreak, Prime Minister Narendra Modi imposed section 144 all over India for 21 days. All the shops will be closed till April 14 except for basic commodities, medical shops, and banks. This will lead to big economic changes in India.

On 12th March 2020, Sensex saw the steepest crash in its history by witnessing a jump of nearly 2,919 points.  World Health Organization announcing Coronavirus Outbreak to be pandemic, With cases rising rapidly outside of China.

Fiscal policy is how a government adjusts its spending levels and tax rates to monitor and influence a nation’s economy. To ensure sufficient supply during the lockdown.

India’s total electronic imports account for 45% of China. Around one-third of machinery and almost two-fifths of organic chemicals that India purchases from the world come from China. For automotive parts and fertilizers, China’s share in India’s import is more than 25%. Around 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile phones come from China to India.chia closed down all the industries which affect the Indian economy.

At least in the oil sector, the global health emergency posed by the spread of the novel Coronavirus and Saudi Arabia declaring a price war is coming to India’s advantage. India’s oil import bill is expected to fall by a sharper 10% in FY20 as the increasing spread of Coronavirus, which is good news to India now because  India   Lower oil prices will provide a cushion, boosting government revenue and creating room in household budgets.

According to a UN report, the trade impact of the coronavirus epidemic for India is estimated to be about US$ 348 million dollars and the country figures among the top 15 economies most affected as the slowdown of manufacturing in China disrupts the world trade.

Priyanka Kishore, head of India and South East Asia economics at Oxford Economics maintained, “Despite all efforts, India cannot escape a hit to its exports from the global economic damage that COVID-19 is likely to cause. Services exports are also likely to come under additional pressure following the recent travel restrictions, which are not reflected in our baseline forecast yet. Lastly, around 26% of India’s core intermediate imports  are from China and Hong Kong according to UN Com trade data, which could have some adverse repercussions for Indian manufacturing and, in turn, domestic demand.”

Ashwajit Singh, Managing Director, Institute of Public Enterprise Global maintains, “All said and done, Covid-19 is likely to have an adverse economic impact on the world economy. While the government is going all out to control the rising instances of Corona in the country, a pandemic such as this needs a collective response and a behavior shift at all levels to be able to minimize the impacts on public health and the economy.”

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