COVID AND INDIAN ECONOMY

[mysterious1998]

AFTER COVID19 -

After this huge pandemic came to India more than 140 million people lost their work and income.
Till date more than 14000 cases are increasing everyday in india and more than 54% private businesses have been shut downed.
Prime Minister Narendra Modi has launched package of 20lack crores which include many relief schemes for those who lost their jobs, whose startup fell down and also for those labors and workers who migrated back to their hometown after losing their jobs and homes.
Even the biggest companies of India like TATA, BHEL and ADITYA BIRLA has reduced their production because of fewer demands and economical strains.
Government is also failing to generate revenue as sources like revenue from tourism, export-import trade have almost stopped and unemployment is increasing day by day which resulted in less tax collection.
All e-commerce sites were shut down during first 3 phases of lock down and which gave them huge loss. All public cinemas and sports centers are stil closed which were a good tax source for government.

CONCLUSION -
After every possible effort done to boost economy even during this complex situation by government the Indian Economy is going down day by day. GDP is shrinking constantly even almost all buisnesses were resumed after 3rd phase of lock down.
Even economy can be more affected after disturbed Indochina trade relations.
Government is focusing more on to provide better medical facilities and treatment to Covid affected people (which must be its first priority) by ignoring local disturbed economy.
Many factories are unable to increase their work production because they are now facing shortage of labor.

SOLUTION -

Every Indian needs to support each other as Indian Government is asking everyone to help the local traders and manufactures by giving the slogan ‘vocal about local’.
Many developed countries failed to fight with Covid19 but Indian government is still haven't lost the hope and now it is our duty to push our economy.
NO government can not do everything alone because it's the first time for everyone in this world who is dealing with such medical and economic crisis.
Government is asking people to purchase all the locally made products and goods which is a great initiative.
It's time to get united and support each other to avoid future economic pressures.

[1715252674]

1715252674

[1715252674]

1715252674

[1715252674]

1715252674

[1715252674]

1715252674

[btc_angela]

I don't think developed countries failed to fight Covid-19 in your conclusion, it's just they are late in responding, like Italy for instance. While there are countries who reacted very quick like South Korea because they see the impact and the seriousness of the situation. But I do agree that we should help everyone, not just in India. Many countries are adopting similar "battle cry" not just to fight but to survived in this pandemic. Again, throughout history, mankind has really proven itself to go beyond and survived (even nuclear holocaust, war famine). So I will say that this is just a challenge and we should be positive that everyone's economy will start to gear and heat up in the next quarter.

[Sanugarid]

The one that you mentioned about factories whose getting shortage in labor causing a less production only applies to those factories that are not part of individual's necessity, for example factory of slippers, you won't be getting your workers to produce a slipper in times like this, instead those factories who is part of human necessity are not closed or being cut in workers, they have guidelines to follow in their workplace such as wearing a protective gears. I know all of the government is struggling both medical and economically coz we aren't prepare on this long ditched road.

I agree there should be a mass production of local products, as if we have a choice coz every products coming from other countries are on hold. It's not just India that is suffering actually, everyone does too.

The only solution is to find the cure/vaccine.

[Pectivark]

How can people buy more goods and products while they have lost their jobs?

The solution lies in increasing government spending on projects and companies that employ a lot of workers by keeping them in their jobs and trying to pay part of their salaries.

It also has to give direct subsidies to those who have lost their jobs and thus more money that can encourage demand if markets open and commercial activity returns to Normal positioning.

The worst solution would be to print more money, but printing money is not as bad during a crisis.

[abhiseshakana]

Every Indian needs to support each other as Indian Government is asking everyone to help the local traders and manufactures by giving the slogan ‘vocal about local’.
Many developed countries failed to fight with Covid19 but Indian government is still haven't lost the hope and now it is our duty to push our economy.
NO government can not do everything alone because it's the first time for everyone in this world who is dealing with such medical and economic crisis.
Government is asking people to purchase all the locally made products and goods which is a great initiative.
It's time to get united and support each other to avoid future economic pressures.

During the pandemic and after the pandemic, the global and national economy will be hit by a double shock on the demand and supply side. It's just that the country that feels the most is the country that has the debt and the country that is dependent on imports so that the country has a high dependence on the dollar. The budget deficit, reduced state revenue, makes debt the only alternative is chosen by the government to patch the deficit.

In India, there is a discourse of economic improvement by printing money. Vocal about local is important for all countries, not just India because this is a strategy to increase domestic production and reduce foreign exchange. The Indian government will calculate the manufacturing sector what percentage is stopped due to the attack of the corona. If India is focused on creating an independent industry I think manufacturing that produces under 50%. So India will merge an independent QE + industry strategy. In this independent industry, 100% of raw materials use local products, production machinery is also local, labor is also local, so 100% can use rupees. The most important thing is that the industry must be labor intensive and the industry that moves is not infrastructure, services, or trading.

As for each individual, especially the middle and lower classes must try to consolidate the base of the pyramid so that the economy rotates horizontally rather than vertically. So that the economic benefits can be felt by the people at the bottom of the pyramid.

When viewed from the other side the pandemic also created momentum for many countries to be more sovereign. And with the motivation you are on your own, each country can determine its own strategy needed. Moodi's strategy is quite good by close relations to the US as a superpower. India certainly gets a privilege from the United States as a strategic partner.

[Yaunfitda]

How can people buy more goods and products while they have lost their jobs?

The solution lies in increasing government spending on projects and companies that employ a lot of workers by keeping them in their jobs and trying to pay part of their salaries.

This is the best solution, however, if government doesn't have enough money, then it will be very hard not just for India but for the rest of countries whose national budget have been depleted in the last three months.

It also has to give direct subsidies to those who have lost their jobs and thus more money that can encourage demand if markets open and commercial activity returns to Normal positioning.

This has been done by the government itself, but with billions of population, it is not sustainable.

The worst solution would be to print more money, but printing money is not as bad during a crisis.

But it could have a negative impact in the long run. They should open up their economy specially small to mid companies so that those who still have jobs can have purchasing power again and pump and stimulate some growth.

[amishmanish]

The push for domestic manufacturing and domestic products is one small silver lining of this disaster. The loan package for MSME's is not half bad. Yet, all depends on the sector. For example, companies in pharmaceutical sector are seeing their share prices skyrocketing. This is because of the huge capacity for pharma production. Companies like Glenmark, Cipla are going to produce generic versions which will have worldwide demand in the coming times. Just like India ended up being HCQ supplier.

The other manufacturing sectors will need to put their act together by innovation and alternate sources of raw material. There has been a lot of bravado about boycotting the Chinese but a lot of India's industries are presently captive to chinese sources. This will take time to change but there is no doubt that it has lead to several opportunities.

Lastly, the reverse migration of population is being seen as a positive change. A lot of these people are no longer uneducated, unaware individuals. Thanks to the digital revolution, people are pretty much aware of their rights pertaining to the employment guarantee schemes of government, the loan/ insurance schemes for farmers, education schemes etc. There is ardent hope that the homecoming of these better informed and better connected citizens into the village economy will lead to greater entrepreneurship and innovation.

[Metherry]

India is not the only country affected by this pandemic, many countries have lost many lives and many jobs, the economy has paralyzed many institutions and India is not isolated from these consequences.

The solutions may be in the hands of the government more than the people, as restarting factories and incurring losses is much better than waiting for someone to remedy these crises or sponsor societal initiatives.

[so98nn]

India is literally opened up completely now. Have you seen the news recently ? Just see how life has settled to normal days and how people are wandering everywhere they want. Since Lockdown 5.0 (Unlocking) nobody really cares about Covid19 because their priorities are to feed their families by doing some work.

In India most of the population lives on "hand-money" where they work and at the end of day get their wages. This is why people won't be stopping in houses anymore and they will keep working so that they can get food for atleast on that day.

Now, here comes the trouble, this will boost the covid19 spread to larger population.

There is no solution until we get Vaccine for the same.

[kotajikikox]

How can people buy more goods and products while they have lost their jobs?

I have not read any statements that People must Buy their food in this thread instead OP is urging Indians to Help others.

The solution lies in increasing government spending on projects and companies that employ a lot of workers by keeping them in their jobs and trying to pay part of their salaries.

This is far impossible for now because Even Government are in shortage because of the reliefs and support they are spending day by day to people in needs and the support for the frontliners.

It also has to give direct subsidies to those who have lost their jobs and thus more money that can encourage demand if markets open and commercial activity returns to Normal positioning.

The worst solution would be to print more money, but printing money is not as bad during a crisis.

I think this is the last thing every government will do,Desperation will lead them to print more money .

[mersal]

Indian government never tried to help their people, they announced huge relief package but it got nothing for the affected people.Someone narrated what is happening in India in most funny way in this section itself.

Government is still trying to loot from the affected people, mostly middle class people are getting affected here and if this problem exists too long then Indian economy will be too low and will take years to recover.

[avikz]

Lol! OP, what kind of relief package you are talking about that Narendra Modi provided? He is not even qualified for the same! Having majority votes in his kitty doesn't make him an economist! He and his ministerial cabinet is only good in creating communal tensions and nothing else!

Narendra Modi did provide a direct monetary support to the poor class of people and tou must know the amount - $6.60 at today's rate. For businesses, he encouraged to take loans and requested banks to provide loans without guarantees which majority of private banks didn't agree to!

He is a laughing stock among educated mass in India. But unfortunately, the number of uneducated people are more so he is winning the elections.

"Vocal for local" is probably the only thing he has done right in his career. But without proper plan this will also fail big time! Nationalist emotions are good in theory, but doesn't work without planning!

[abhiseshakana]

but printing money is not as bad during a crisis.

It can increase the problem of inflation that is usually around with time of crisis.

Print money doesn't always bring inflation. Americans print inflation below 3-4%. When subprime mortgages occur that cause unemployment and huge losses and with the fed printing money the problem does not last long. Japan is also diligent in printing money to accelerate development and also can not be inflation instead even deflation because its citizens are diligent in saving. China is also a country that prints money with a layered project guarantee and is combined with the OBOR strategy so that China can print renminbi for the project but get foreign exchange in dollars.

Printing money will bring inflation when printing money is used to pay debts or for consumption. Printing money must not be done with the aim of creating demand. Print money must be for real projects and productive industries. In addition, in a crisis situation, money printing must be combined with other strategies such as maximizing local natural resources to create an independent industry.

[Wexnident]

It's weird how even e-commerce sites weren't forgiven from closing down during the lockdown. Even if it was locked down, the duration seems too long, just looked it up and it was from Mid-March to May. After the 2nd phase or even the third phase, loosening the lockdowns by employing methods to at the very least let the economy circulate should've been done. At the time frame of the initial lockdown, the government should have been deciding on what to do to improve domestic development as well as increasing the jobs that require the employing of workforce.

Still, the current state of India should get better as time goes on, that is unless the government proves to do idiotic moves continuously. With how local products are now being slowly spread out and how domestic development is slowly growing properly. If India manages to survive the pandemic crisis, and I hope they do, the development of their domestic industry should be a large help in improving the economy of their country.

[bearexin]

140 million???   Wow, that’s a really huge number there. This virus has really turned the world into something else. What worries me the most is how these people are going to be surviving when they all have no jobs to work. How are they going to be getting money to feed themselves. This covid19 is something else; you decide to stay indoors you will have hunger to face and you decide to go outside you will have the virus to face lol.

I think it’s best that the government start applying measures that will help them ease the lockdown, they should look for ways to help keep people safe while they go out to work and rebuild their economy. Other than the ongoing pandemic, the India-China border tension will be playing another level of influences in deciding the growth rate of economy. It seems very hard time in all means but I read India was not got hit by 2008 recession due to its strong and wide production of agriculture related products but this time may be the stories will be different.

[nomenclatur]

a difficult economic situation faced by the government of India is better to maximize product local, livestock and agriculture to help all people in need of food and money I think it helps the agricultural sector to make it easier for farmers to get good results and can be sold to the public at a price that's at least ease the burden on those who lack food.

[KrisAlex18]

It would be so terrible on the part of India if I am not mistaken, India is one of the third world countries so this pandemic virus is really bad for them. Their economy is already low and this pandemic will make their economy lower because of being jobless of many people in their country. There are many Indians who are now suffering because they don't know where to get their food. It's hard for them to see their family being hungry and they don't know what to do to fix the problem. The government's help is not so enough for us to feed our family if this pandemic would last so long.

The solution lies in increasing government spending on projects and companies that employ a lot of workers by keeping them in their jobs and trying to pay part of their salaries.

That is a great solution but how could hey implement those things if we still have this pandemic virus. Ee should be careful now and do nothing outside. It should be implemented once the pandemic virus has gone.

[Negotiation]

The real crisis will occur after the virus is controlled so if we are careful now we will be able to overcome this situation a lot However, the virus has hit the Indian economy hard. In addition to the virus, the locusts have destroyed all the crops in their country so the food crisis is going to increase The Indian government should spend more on agriculture They will not be able to recover what has been done in the last two or three years but they are hiding their information India is suffering more than any other country.

[whyrqa]

The real crisis will occur after the virus is controlled so if we are careful now we will be able to overcome this situation a lot However, the virus has hit the Indian economy hard. In addition to the virus, the locusts have destroyed all the crops in their country so the food crisis is going to increase The Indian government should spend more on agriculture They will not be able to recover what has been done in the last two or three years but they are hiding their information India is suffering more than any other country.

According to statistics provided by official authorities, it is agriculture in India that shows real results, for the entire spread of coronavirus throughout the world. But the production was hit hard. In addition, we must not forget that a significant part of the world is very dependent on Indian products, especially when it comes to the supply of medicines, in which many countries of the world today feel very severe shortages. It is no secret that it is India, one of the main suppliers of medicines and pharmaceutical raw materials, and the government has already banned the export of a number of drugs. Based on this, it can be said with accuracy that the economic problems of some countries automatically affect the economies of others.

[mithun303]

Not just India, The economic situation is very bad, But the news of the last fed days, India is now showing something else. They have started living a normal life. Ordinary people are wandering around wherever they want, Because they don't think about COVID-19. THey think about the family, They think about how we can earn money. Where they go and find work, They go out of the house for the purpose of finding work. They go out every day to earn their living.


I Don't think there is a solution until the Antidote is being developed.