Page 42 - Banking Finance August 2020

ARTICLE

IMPACT OF COVID

19 ON INDIAN

ECONOMY AND

THE WAY

FORWARD

T here is a high likelihood, we are months away Actually, the economic impact of COVID-19 is highly

from a semblance of normalcy owing to the
disturbing. No one has been spared of its ill effects.
mutating virus, that has been bringing wave
Economies of about 100 plus countries have been destroyed
upon wave of attacks, each deadlier than the
other. Using the World Bank's headline projections about out of which some of them have asked for monetary help
from IMF. ADB etc. Businesses across the world namely
India, of 3.2% contraction in 2020-21 and 3.1% growth in hospitality, entertainment, aviation etc., have seen a major
2021-22, it becomes easier for us to calculate the projected negative impact. Various sports events such as IPL and
growth for different sectors of the economy. Olympics have been postponed. Schools and colleges have
been closed. The virus has also disrupted the functioning of
This comes to a 7.2% contraction in 2020-21 and 1.4% various online giants. Countries such as USA, UK, Italy, Spain,
growth in 2021-22. Since the big jolt given by pandemic Brazil and India are suffering the most.
Covid19 in March 2020, India has been facing a huge decline
in government revenues and growth of the income. There is a big shift in the world economic market and the
share market has witnessed crashes day by day. Factories,
Restaurants, Pubs, Markets, Flights, Super Markets, Malls,
About the author Universities and Colleges etc. have been shut down for 2
quarters. Fear of corona virus is so heavy on the heads that
Manjula Wadhwa People prefer to go out to buy the daily essentials The
Asstt. General Manager Organization for Economic Co-operation and Development
NABARD, Haryana Regional Office (OECD) reveals that they have cut their expectation for
Chandigarh global growth to 2.4% from 2.9%, and warns that it could
fall as low as 1.5%.

42 | 2020 | AUGUST | BANKING FINANCE