Lack of jobs in the market has already hit the common man severely. The double-digit contraction rate means the situation is likely to improve only at snail’s pace.
With the majority of countries going through a K-shaped economic recovery, the gap between the haves and have nots will widen and big companies will consume smaller ones faster than ever.
If the forecast of IMF turns out to be true, India will be the worst affected economy in the South Asia. However, Finance Minister Nirmala Sitharaman’s Rs. 73,000 crore package looks bright.
Goldman Sachs predicts a greater recession by March 2021. Here is a report on India’s economic performance in the month of September.
The Indian economy may be facing its biggest crisis yet. Its foundations, however, remain robust. Despite short-term setbacks, India’s sterling performance over the last decade and recently introduced policy reforms should have a synergistic effect on growth in 2021-22.
How will the industry recover and when it emerges from this crisis, will it look completely different? The immediate impact has been cataclysmic, but there are also concerns growing over the future of the Indian economy.
The most enduring image of the Coronavirus pandemic and ensuing lockdown in India is likely to be that of hundreds of migrant workers – desperate droves of scruffy men, women, and children – dotting the country’s highways as they set off for their homes on foot notwithstanding the scorching April heat or their ill-preparedness for the rigors of the journey ahead. It has almost been like witnessing a reverse replay of the Dust Bowl Exodus in the United States when, in the midst of the Great Depression, severe dust storms and drought caused millions to migrate to cities in search of work and livelihood.
How much, how wide, and how far should the Indian Government go with fiscal stimulus package in its bid to revive the economy after more than 40 days of halt. We ponder.