Coronavirus pandemic has hit every country in a significant way. Traveling across multiple countries has become impossible due to flying with directions. You cannot travel to any other country.
There are many safety and positions for even traveling within the country. It’s important to understand all these rules as you have to do all the work safely. One of the countries which were affected in the biggest way was India.
The growth of India in the fourth quarter of the fiscal year 2020 was down by 3.1 %. India has been noticing a significant downfall in the GDP even before the pandemic started. It was shown that India has the lowest figures in growth for the last three decades. It was estimated that India’s GDP down in more negative figures, which was the signal for a recession.
How the Corona Impacted Indian GDP?
During the fiscal year, the Indian industry was reduced by 10.3%, according to the IMF. It is the biggest reduction amongst any country in the specific area. A lot of concerns were raised due to the significant decline in the GDP.
There are three other countries, which suffer the same GDP issues: Pakistan at 0.4 %, Sri Lanka 4.6 %, and Afghanistan at 5%. India was the only second country apart from Afghanistan,who might not make the GDP level even 2021.
A Steep fall in the Investments
You can see a significant decrease in the number of investors, which reduced India’s GDP even before the pandemic. The number was reduced from 39.6 % to 29.7 % from 2011 to 2019.
It is expected to fall near 27.8% in 2020, but it might not cross the 31.7% mark until 2025. The countries except for China, Myanmar, and Bhutan will suffer a fall in the GDP ratios.
What do people say about the government’s Priority?
Many people are different concerns regarding the steep fall in the GDP of the country. According to a pole, it was shown that a majority of people voted to ensure that the government’s focus should be on saving lives instead of recovering the GDP of the country.
The GDP can wait, for it can be slower unless the government focuses on saving more lies. Some people were so concernedabout starting to focus on the livelihood of the people. Starting jobs and regular life is important for people to stay in a healthy lifestyle.
Many people have lost their jobs livelihood due to coronavirus pandemic. Many people are concerned about starting a business. It can ensure that everyone can go back to earning money to sustain our proper living. You can again detail the poles and understand how the people are divided about India’s GDP concerns.
What was in the Economic Package?
The total economic package announced by the Indian government was about rupees 20 lakh crore. It is about 10% of India’s GDP and roughly around $280 billion. The Prime Minister of India announced it on the 12th of May.
The strategy was to combine the liquidity measures, monetary and fiscal to defend the government. The economy package consists of reforms for the infrastructure building and a certain amount of cash for direct support.
Some collateral-free loans will provide it to resume the business and of a saved job. There were some significant changes in the FDI policy and also the privatization of the power sector.
There were some concerns regarding the short term demand, which were not addressed in the comic package. Many people raised concerns that it can lead to the full down of the economy even more.It was because of the announcements were mostly related to the supply.
Well, India is not the only country that was most affected by the covid-19 pandemic. There were many countries, but the significant decline in India’s GDP was the biggest. That is why it becomes a concern for the citizens of the country. It was supposed to happen due to the country’s lockdown to protect the coronavirus’s mass spread. It was successful for a long time, and many countries appreciated the efforts of the Indian authorities. It was commendable how they manage to prevent the spread even after such a big population, but it comes at the cost of GDP.