How Coronavirus Lockdown Has Affected Indian Economy
The Prime Minister of India, Mr. Narendra Modi has announced a nationwide lockdown on 24th of March with effect since 25th of March. This lockdown is a crucial step taken to contain the spread of highly contagious coronavirus disease.
With this lockdown, all the social and economical activity has been paused immediately, because of which, a deteriating effect has been observed on the Indian economy.
Effects Of COVID- 19 On Various Sectors Of Indian Economy
Almost the entire IT sector has been working from home, since the lockdown has begun, and will continue to do so in the near future. But the extended period of lockdown will cause job cuts in large number.
This sector in particular, is said to depict the real scenarios of the Indian economy. And hence it is the most influenced by the nationwide lockdown. A noticeable decrease can be observed in the net income of the people of India. It in turn has affected the debt repayments by the individuals.
All the schools are closed down due to coronavirus lockdown. This has surely safeguarded the health of the students and the staff members. However, most of the private schools have adapted the online teaching mode to connect and educate their students. But same is not possible for state government schools and the low income schools, therefore, the education of the young generation is hampered.
The healthcare sector is undoubtedly the frontline fighters during these tough times. Health sector is standing firm in the fight against coronavirus by relentlessly testing and treating the COVID-19 patients.
It is estimated that this sector has incurred a loss of $500 million, since the country went under lockdown. And it is estimated that, the extension in the lockdown, will increase the loss to almost 1 billion dollars.
Most of the ongoing real estate projects are stopped due to lockdown and more than 75% of the real estate investors are defaulting the payments.
And the situation is expected to remain the same even after the lockdown, due to the lack of raw material and laborers.
The nationwide lockdown has tremendously decreased the requirement of electricity. Moreover the ongoing power plant projects are stopped for now. Therefore, power sector is expected to make less return in this financial year.
The COVID-19 lockdown has not at all affected the telecom sector of India. In fact, it has increased the requirement of data and phoencalls due to working from home scenario.
Yes, nationwide coronavirus lockdown has put the Indian economy in rather difficult situation but it is a crucial step taken to safeguard our nation from the uncontrollable spreading of coronavirus.