Reportedly the Covid-19 pandemic has impacted economies around the world like no other event that experts can recollect since the Great Depression.
Some of the strongest economies around the globe are struggling to cope with the situation in the wake of an unprecedented demand shock and a shutdown of all key economic activities that drive growth. In the united states, the world’s most powerful economy, a massive number of jobs losses have been reported due to the Covid-19 pandemic. The situation is so bad that US President donald trump on thursday said the “US has been attacked and Covid-19 is not just any flu”.
india, too, has been hit hard. Global rating agency today slashed India’s GDP projection for FY21 to 0.8 per cent. The Covid-19 pandemic has been a huge blow to india, especially since many sectors were already facing a crisis when the virus storm hit. The virus not only accelerated the crisis but also ended the good run that some sectors were enjoying. Adding to the worries in a steep demand shock that experts say classified as a long-term worry, citing uncertainty in the post-pandemic landscape.
If not all, key sectors that make up a larger portion of India’s GDP have been taken completely or partially out of action. Reports of job losses, unpaid leaves and other concerns are being reported on a daily basis from such sectors. CMIE data shows how unemployment in india spiked in the month of April. The situation is expected to worsen if the situation shows no improvement over the next few months. The Micro, Small and Medium Enterprises (MSMEs) are literally the backbone of all indian sectors and often engaged in manufacturing and export activities two key drivers of the indian economy. Moreover there are reports of global airlines announcing furloughs or layoffs as operational strains deepen in the wake of the lockdown.
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