The Economic Crisis

on

 Economic Implications of Covid-19


                 Covid-19 has not only caused a health crisis but also an economic crisis. We will try to explore how much Indian economy has suffered due to Covid-19 by analyzing various indices.

[1] GDP :

Img 1.9- Growth Rate Of Quarterly Estimates of GDP

Data Computation Sheet https://docs.google.com/spreadsheets/d/11ZlFPbIChSWtKuCGUfzDIeqHoFeUOInw_kkfI3BiQ8k/edit#gid=0&range=J6

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The GDP growth rate estimates were not only very low in FY 2019-2020, but also we are estimating a negative growth in the first quarter of FY 2020-21.

[2] Change In Demographics :

Img 1.10- Income Holding Population amidst pandemic

Data Computation Sheet https://docs.google.com/spreadsheets/d/11ZlFPbIChSWtKuCGUfzDIeqHoFeUOInw_kkfI3BiQ8k/edit#gid=0&range=J6

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[3] Unemployment :

Img 1.11- Unemployment Rate In India

Data Computation Sheet https://docs.google.com/spreadsheets/d/11ZlFPbIChSWtKuCGUfzDIeqHoFeUOInw_kkfI3BiQ8k/edit#gid=0&range=J6

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Unemployment rate was at its height in April,2020(23.5%).However it recovered to the pre- pandemic situation by July,2020. But with the ongoing 2nd wave and statewise partial lockdowns the unemployment rate has been increasing again(7.91% on 1st May to 10.77% on 24th May).

 [4] Consumer Price Index (CPI) :

Img 1.12-Consumer Price Index Data Plot 2020-2021

Data Computation Sheet https://docs.google.com/spreadsheets/d/11ZlFPbIChSWtKuCGUfzDIeqHoFeUOInw_kkfI3BiQ8k/edit#gid=0&range=J6

Data Source: https://tradingeconomics.com/india/consumer-price-index-cpi

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A rise of CPI is seen from May,2020 to November,2020 and after that it started to decrease. We can not conclude whether this inflation can be attributed to pandemic or not but however this inflation was more or less a burden on people during the time of pandemic.

[5] Consumer Confidence Index :

Img 1.13- Consumer Confidence Index Plot 2020-2021

Data Computation Sheet https://docs.google.com/spreadsheets/d/11ZlFPbIChSWtKuCGUfzDIeqHoFeUOInw_kkfI3BiQ8k/edit#gid=0&range=J6

During 2020 consumer’s perception on the current economic situation was negative compared to previous year. However most of the consumers kept their expectations that the situation will improve after a year.


Government’s Steps for Economic Recovery :

  • Various schemes were taken under PM Ujwala Yojana, PM-KISAN, MNREGA, Garib Kalyan Rojgar Aviyaan etc in forms of direct fund transfer, subsidies and paying premiums for provident funds during these unprecedented times.

  • RBI also took several steps by putting EMIs on hold, reducing Repo rates, increasing liquidities and granting special finance to NABARD, SIDBI and NHB.

  • Under the AtmaNirbhar Bharat Abhiyaan, various economic stimulus packages were granted to several sectors including MSMEs.

Apart from all above, Different State governments also took several steps in various forms to support the economy and livelihood of people.


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