COVID-19 Impact on the Indian Economy

[abhiseshakana]

Sometimes democracy can had you a disadvantage. And this is what has happened to India. China is an authoritarian state and it was able to strictly implement the lockdown measures. But India, being a democratic nation could not prevent the citizens to obey lockdown regulations. And the results are there for everyone to see. Yesterday there were 90,000 new cases in India and for China there were 10 new cases reported yesterday.

Democracy is often associated with pandemics, so the question arises whether there is a role for democracy in dealing with pandemics. A pandemic has the potential to harm democracy. This is because there are "extraordinary" policies taken by the state in a crisis that has the potential to violate democratic norms. The pandemic has also set a precedent for the rise of authoritarianism in various countries. To break the chain of pandemic spread, excessive and repressive actions were carried out. People in times of crisis no longer worry about discrimination, social restrictions and violence by the apparatus, because in the name of health, some elements legally violate democratic norms. Poor leadership has also resulted in the deterioration of pandemic mitigation policies. The decline in countermeasures policies has resulted in a low level of public trust and has led to apathy. As a result, the spread of the virus is difficult to contain.

China has had more success with the outbreak. because of the centralization of power which facilitates coordination in handling. Relations between parties and between institutions are well coordinated, as well as high public trust in the government, thus fostering broad participation in facing crises. But other countries that are not authoritarian have also succeeded in stemming the spread such as New Zealand, Taiwan, South Korea. So the type of political regime does not determine the readiness and success of the country against the pandemic, which determines the quality of leadership.

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[STT]

Sometimes democracy can had you a disadvantage. And this is what has happened to India.

China stats cannot be relied on totally, we'll never know exactly how many died there.   Its very likely more then reported, because communism does not respect independence in reporting either.     India is not entirely free, no country has a perfect freedom score as I think there is even a yearly examination and comparison of freedom across countries and I dont remember reading of any perfect country.
   This isnt the first major flu illness to hit China, I remember reading over 1 million deaths occurred from '68 onwards from influenza A (H3N2) and we've heard a few times recently of other strains.   They have some practise on this issue where as I cannot remember anything this deadly being common in most western countries and it could be similar in India.   A difference in culture more then politics, most of the deaths avoided will be down to self caution by the people imo.

So far as economic impact, I'm still not clear every day I watch the news whether we can at least draw a line under 2020 and say it'll improve considerably afterwards or is this now a reoccurring threat and the strain mutates and spreads newly every year as we know the cold and flu can easily do.    If thats the case its India and every where that has to adapt to changes forever.   I'm not clear if thats true and I'm not sure which country or culture will best adapt and make do with the necessary changes.

[bryant.coleman]

China stats cannot be relied on totally, we'll never know exactly how many died there.   Its very likely more then reported, because communism does not respect independence in reporting either.     India is not entirely free, no country has a perfect freedom score as I think there is even a yearly examination and comparison of freedom across countries and I dont remember reading of any perfect country.
   This isnt the first major flu illness to hit China, I remember reading over 1 million deaths occurred from '68 onwards from influenza A (H3N2) and we've heard a few times recently of other strains.   They have some practise on this issue where as I cannot remember anything this deadly being common in most western countries and it could be similar in India.   A difference in culture more then politics, most of the deaths avoided will be down to self caution by the people imo.

So far as economic impact, I'm still not clear every day I watch the news whether we can at least draw a line under 2020 and say it'll improve considerably afterwards or is this now a reoccurring threat and the strain mutates and spreads newly every year as we know the cold and flu can easily do.    If thats the case its India and every where that has to adapt to changes forever.   I'm not clear if thats true and I'm not sure which country or culture will best adapt and make do with the necessary changes.

It may be possible to hide the number of infections. But it will be very hard to hide the number of dead, no matter how much authoritarian they are. I still believe that the number of deaths from COVID 19 in China is somewhere near the figures published by the government. And regarding the number of infections, the undercount can be seen in all the countries, and not just in China.

[panganib999]

Actually such happenings on the Indian economy that is brought by the existence of this covid-19 pandemic is also present on the other economy of the countries around the world which were directly affected by the rising cases of infected cases by the pandemic. Many countries like India have also been suffering and facing struggle at this times due to the reason that certain works are being temporarily postponed in accordance to the implementing health protocols making working spaces to close temporary to prevent the further potential of the spread of virus that have a direct effect on the economy of the country. Maybe all countries have been experiencing the same struggle but for a country like India, this might be made more difficult to be handled on which country's economy is really having a hard time to have a recovery if ever this pandemic would end soon.

[inoes]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

[bryant.coleman]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

The central banks all around the world are printing banknotes like there is no tomorrow. As a result the purchasing power of fiat currency is going down. The investors want to protect their assets from rampant inflation and therefore they are turning to assets that are protected from inflation, such as gold. Even now I have a feeling that gold is under-priced. In the next 4-5 years, I expect the gold prices to reach $5,000 per oz.

[lepbagong]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

What I fear the most is not the economy that will only suffer, but if this pandemic does not go down and stop, what I fear is the danger of hunger which will worsen the country's economy. which in the end the pandemic did not stop but continued.
hopefully this will not happen and soon the pandemic can be over.
If it is about the price of gold and others, the government will be able to carry out regulations in a separate and different way if a famine pandemic occurs, it is very difficult to handle it quickly and easily.

[Vishnu.Reang]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

Gold loans are very popular in my country (India). But the terms are very exploitative and in most of the cases the individual has to forfeit the gold as he is unable to make the steep interest payments. I always advice my friends to sell, rather than pawn their gold. Because if they pawn their gold, then they will end up with a fraction of the gold price. And they will forfeit the gold jewelry in the end, due to the inability to pay the monthly interest.

[AmoreJaz]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

Gold loans are very popular in my country (India). But the terms are very exploitative and in most of the cases the individual has to forfeit the gold as he is unable to make the steep interest payments. I always advice my friends to sell, rather than pawn their gold. Because if they pawn their gold, then they will end up with a fraction of the gold price. And they will forfeit the gold jewelry in the end, due to the inability to pay the monthly interest.

i guess you are right on that - selling rather than pawning esp if you have small chance of getting the money to get it back within the given time period. at least when you sell, you can already get a good price but paying monthly interest? how long before someone realised that he already paid the value of his gold just by the interest.
 and this problem is global. not only in India or neighbouring countries. we are talking all over the world. a lot of people have their own problems when it comes to finances. this is a global dilemma!

[abhiseshakana]

The central banks all around the world are printing banknotes like there is no tomorrow. As a result the purchasing power of fiat currency is going down. The investors want to protect their assets from rampant inflation and therefore they are turning to assets that are protected from inflation, such as gold. Even now I have a feeling that gold is under-priced. In the next 4-5 years, I expect the gold prices to reach $5,000 per oz.

If the central bank prints money to flush the market with cash to increase demand, it can indeed lead to inflation. According to the initiator of the MMT (modern monetary theory), printing money does not always end in inflation as long as money is used to boost independent and productive production sectors.

Gold is a relative asset that increases in value over time, moreover there are rumors that America will carry out a currency war with the possibility of returning to the gold system as collateral for printing money, as the first simulation or by simulating increasing the price of gold so that it is proportional to the amount of money that has been printed by America. In addition, many countries are voicing dedolarization, and one of the steps to maintain economic stability is foreign exchange reserves in the form of gold.

[imstillthebest]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job,

isnt bank crisis already included with it ? because when we say economic crisis the first thing that comes to our mind is the whole economy  but there is such thing as bank crisis ? because banks can always print more if they wanted too  .

with crisis like this its impossible that loans are limited because people seek money  and how is the job connected to it  . you can get a job if you want to because you can apply for it .

[Dorodha]

Almost everything in India is being hampered by the economic crisis the effect of the virus has decreased a lot from before. Although it is difficult to give loans to banks, the central bank has started buying government bonds to ease the financial conditions. The Indian government has decided to increase the allocation in the health sector to deal with corona. The government has emphasized on providing salaries cash to the poor delaying payment of taxes providing loans and liquidity to small businesses and financial institutions.

[CODE200]

What the Indian economy is experiencing due to the effects of the covid-19 pandemic is also the same thing being experienced by other countries that are directly and severely affected by the high inflation rate of infected individuals most specially pertaining to the third world countries. If Indian economy is struggling amid with the existence of the pandemic, so do other countries do also have the same struggle too. It is just that certain countries do have different capacities and capabilities to cope up with the situation which depends on their economic status. One of the greatest and observable effect of this pandemic is the negative effect of it with concern to the economic status of a certain country like India.

[bryant.coleman]

Almost everything in India is being hampered by the economic crisis the effect of the virus has decreased a lot from before. Although it is difficult to give loans to banks, the central bank has started buying government bonds to ease the financial conditions. The Indian government has decided to increase the allocation in the health sector to deal with corona. The government has emphasized on providing salaries cash to the poor delaying payment of taxes providing loans and liquidity to small businesses and financial institutions.

Compared to the other countries, the Indian government has done a lot to help small business and the jobless people. But they can't give out freebies for ever, as the tax revenue has plummeted. As a result, the government has allowed a gradual re-opening of the economy. As far as I know, only a few institutions are closed as of now, including schools and colleges. But that doesn't mean that economy has recovered. Ordinary people are not venturing out that often and non-essential services are suffering as a result.

[glowing10]

After the economic crisis the worst thing that will happen is the banking crisis, money is an important thing that becomes the wheel of the economy, but when traditional bank loans are hard to get, it's difficult to get a job, want to go into debt also has many conditions. as a result the increasing price of gold has helped the popularity of gold loans. The price of gold has gone up by 28% this year to 50,000 rupees per 10 grams.

Gold loans are very popular in my country (India). But the terms are very exploitative and in most of the cases the individual has to forfeit the gold as he is unable to make the steep interest payments. I always advice my friends to sell, rather than pawn their gold. Because if they pawn their gold, then they will end up with a fraction of the gold price. And they will forfeit the gold jewelry in the end, due to the inability to pay the monthly interest.

It’s more of a greed that is shown to people that one can get money on collateral of a loan. Mostly small people fall for it and the interest being so high cumulative they end up losing lot of money for it to get it back. I assume people in various countries who had such scheme during covid would have took loan on lending the gold due to various difficulties faced by them.