In this, all services have been discontinued except for essential services. Business has stopped, shops
are closed, movement is banned. The Corona virus attack has brought a big problem for the Indian economy already facing difficulties. Talking about last year, there was a slowdown in the unorganized sector including automobile sector, real estate, small scale industries. Banks are still dealing with the problem of NPAs .The government was trying to speed up the economy through investment, relief in rules and financial help .But in the meantime, the situation created due to Corona virus has jammed the wheel of the economy. There is neither production nor demand,
people are in homes and are busy in shops.
Decreased GDP growth forecast:-
International rating agency Standard & Poor's has slashed India's gross domestic product (GDP)
growth rate estimate to 5.2 per cent for the fiscal year (2020-21) starting April 1. Earlier, the GDP growth rate was estimated at 6.5 percent. These ratings have been released on Monday.
With this, the rating agency has projected a GDP growth rate of 6.9 percent for the next year 2021- 22. Earlier this estimate was 7 percent. According to Standard & Poor's, the covid-19 could cause a loss of about $ 620 billion to the Asia- Pacific region.The government has announced the lockdown to prevent the spread of corona virus infection. Due to this, people will stay in their homes, social distancing will remain, which will spread the virus at
least.
Seriously following the lockdown can lead to victory against the corona virus, but what effect it will have on India's economy, it remains to be seen. Stopped business, halted economy Senior business journalist Pooja Mehra says, "The most impact of the lockdown will be on the informal sector and 50 percent of our economy's GDP comes from the informal sector. These sectors cannot function during lockdown. They cannot buy raw materials, If you do not sell the manufactured goods in the market, then their earnings will stop. " "There are a large number of small factories and small scale industries in our country. They will have cash problems because they will not earn. These people are not even able to go to the bank, so they take loan on high interest and then the loan Get caught in. " Informal sectors include hawkers, vendors, artists, small scale industries and cross-border trade. The government does not get tax from this class. The effects of the corona virus other than lockdown can also harm companies.
According to Pooja Mehra , people who are ill cannot work. How many people are in self isolation. Those who have their own business or shop will not be able to run them due to illness. The expenses that will be incurred on the disease will be deducted from savings If this virus is not under control then this effect can be more
.At the same time, economist Vivek Kaul says, "Lockdown will make people sit at home, it will not work in companies and how business will happen if there is no work and how the economy will grow. When people sit at home, taxi business, hotel sector, restaurants , Films, multiplexes are all affected. The service that people need to go out will have a profound impact. " "Those household items like flour, rice, wheat, vegetables, milk and yogurt are the only people who will buy them but there are luxury items like TV, cars, AC, all these things will reduce their consumption. One reason for this So it is that people will not go out of the house, so they will not buy all this. Second, it will be that there is a lot of fear in the minds of the people about going to the job because of that people will reduce spending money.
