DOI: https://dx.doi.org/10.18203/2394-6040.ijcmph20220726
Published: 2022-02-28

Impact of COVID-19 pandemic on Indian economy

Sharada Narayanappa, Vamsi Krishna Boyanagari, Pallavi Sarji Uthkarsh

Abstract


The Coronavirus disease 2019 (COVID-19) pandemic has emerged as the most challenging biological disaster of the 21st century. The sudden onset of pandemic in the background of unpreparedness and the lockdown and social distancing measures has impacted the economies of not only the less developed but also the well-developed countries. The objective of this paper is to examine the economic impact of the COVID-19 pandemic on the various sectors of the Indian economy. The data has been collected from the start of the pandemic till the second week of May 2021. The results of the study show that the policy measures taken to contain the pandemic resulted in a severe crunch in the Indian economy. The GDP growth rate recorded a negative figure, the manufacturing sector and contact- intensive hospitality service sectors, domestic and international trade had to shut down and suffered losses like never before. Agriculture, Information technology and software services sector remained resilient and sustained the economy. Migrants had to revert back to their hometowns in search of alternate jobs, unemployment was at its highest during the lockdown in 2020. Continued policy measures and monetary support are needed to cope with the economic impact of COVID-19 in the backdrop of an unprecedented forecast.


Keywords


COVID, Economic Impact, India

Full Text:

PDF

References


Pradip D, Jeslyn WJL, Lim, Karen MX, Min LL et al. Coronavirus disease 2019 (COVID-19) pandemic and pregnancy. Am J Obstet Gynec. 2020;222(6):521-31.

WHO | Modes of transmission of virus causing COVID-19.29 May 2020. WHO. Available at: https://www.who.int/news-room/commentaries/ detail/modes-of-transmission-of-virus-causing-covid-19-implications-for-ipc-precaution-recommendations. Accessed on 9 March 2021.

WHO. Clinical care for severe acute respiratory infection Toolkit Covid-19 adaptation. WHO. 2020. Available at: https://apps.who.int/iris/bitstream /handle/10665/331736/WHO-2019-nCoV-SARI_toolkit-2020.1-eng.pdf?sequence=1&isAllo wed=y. Accessed on 9 May 2020.

Economic survey 2020-21. Available at: https://pib.gov.in/newsite/infographicss.aspx?mincode=15&Event_Code=14. Accessed on 9 March 2021.

Amit B, Rosa A, Rahul L, Surbhi K, Mrinalini J, Paaritosh N et al. State of Working India 2021: One year of Covid-19, Centre for Sustainable Employment, Azim Premji University. Available at: https://cse.azimpremjiuniversity.edu.in/wp-content/uploads/2021/08/SWI2021_August_WEB.pdf. Accessed on 9 March 2021.

WHO. Novel Coronavirus (2019-nCoV) Situation report -1.WHO. 2020. Available at: https://www. who.int/docs/default-source/coronaviru se/situation-reports/20200121-sitrep-1-2019-ncov.pdf?sfvrsn=20a99c10_4. Accessed on 14 May 2021.

WHO. Novel Coronavirus(2019-nCoV) Situation report-2.WHO. 2020. Available at: https://www.who.int/docs/default-source/coron aviruse/situation-reports/20200122-sitrep-2-2019-ncov.pdf?sfvrsn=4d5bcbca_2. Accessed on 14 May 2021.

WHO. Timeline: WHO's COVID-19 response. WHO. Available at: https://www.who.int/emerg encies/diseases/novel-coronavirus-2019/interactive-timeline. Accessed on 14 May 2021.

WHO. Novel Coronavirus (COVID-19) Situation report-53. 2020. Available at: https://www.who. int/docs/default-source/coronaviruse/situation-reports/20200313-sitrep-53-covid-19.pdf?sfvrsn=adb3f72_2. Accessed on 14 May 2021.

WHO. Coronavirus disease 2019 (COVID-19) Situation report. 2019. Available at: https://www. who.int/docs/default-source /coronaviruse/situation-reports/20200430-sitrep-101-covid-19.pdf?sfvrsn=2ba4e093_2. Accessed on 14 May 2020.

WHO. Coronavirus (COVID-19) Dashboard. 2019. Available at: https://covid19.who.int. Accessed on 14 May 2021.

WHO. COVID-19 Weekly epidemiological update Edition 41. 2021. Available at: https://ww w.who.int/publications/m/item/weekly-epidem iological-update-on-covid-19---25-may-2021. Accessed on 24 May 2021.

WHO. SARS-CoV-2 Variants. WHO. 2021. Available at: http://www.who.int/csr/don/31-december-2020-sars-cov2-variants/en/. Accessed on 14 May 2021.

Nuzrath J, Polani R, Mathan K, Irene S, Muthappan S, Kumaravel I. Entry and initial spread of COVID-19 in India: Epidemiological analysis of media surveillance data, India, 2020. Clin Epidemiol Glob Health. 2020;9:347-54.

Covid-19 tracker India. Available at: https://bit.ly/2SvgWDi. Accessed on 24 May 2021.

Economic survey 2020-21. New Delhi Department of Economic Affairs Ministry of Finance Government of India. 2021. Available at: https://www.indiabudget.gov.in/economicsurvey/. Accessed on 14 May 2021.

Dev S, Mahendra, Rajeswari S. Covid-19: Impact on the Indian economy. Report. Indira Gandhi institute of development research. Mumbai. 2020. Available at: https://ideas.repec.org/p/ind/igiwpp/2020-013.html. Accessed on 14 May 2021.

IMF. Policy Responses to COVID19. IMF. Available at: https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19. Accessed on 18 May 2021.

Maharashtra, Kerala, Punjab, Madhya Pradesh, Tamil Nadu, Gujarat & Chhattisgarh witnesses an upsurge in Daily New Cases. 2021. Available at: www.pib.gov.in/Pressreleaseshare.aspx?PRID=1700689. Accessed on 14 May 2021.

Maharashtra, Kerala, Punjab, Karnataka, Gujarat and Tamil Nadu continue to report a spike in Daily New Cases. 2021. Available at: www.pib.gov.in/Pressreleaseshare.aspx?PRID=1703117. Accessed on 14 May 2021.

Genome Sequencing by INSACOG shows variants of concern and a Novel variant in India. Available at: www.pib.gov.in/Pressreleaseshare.aspx?PRID=1707177. Accessed on 17 May 2021.

Monthly economic review. April 2021.Department of economic affairs. 2021. Available at: https://dea.gov.in/sites/default/files/MER%20April%202021_0.pdf. Accessed on 14 May 2021.

Active cases in India. 2021. Available at: https://www.worldometers.info/coronavirus/country/india/. Accessed on 14 May 2021.

WHO. Draft landscape and tracker of COVID-19 candidate vaccines. WHO. 2021. Available at: https://www.who.int/publications/m/item/draft-landscape-of-covid-19-candidate-vaccines. Accessed on 17 May 2021.

COVID-19 Vaccine FAQs. Ministry of health and family welfare Government of India. 2021. Available at: https://www.mohfw.gov.in /covid_vaccination/vaccination/faqs.html. Accessed on 18 May 2021.

Indian economy: A snapshot Economic survey 2020-21. Available at: https://pib.gov.in/newsite/ infographicss.aspx?mincode=15&Event_Code=14. Accessed on 18 May 2021.

Second Advance Estimates of National Income, 2020-21. Ministry of statistics and programme implementation. 2021. Available at: https://pib.gov.in/Pressreleaseshare.aspx?PRID=1701119. Accessed on 19 May 2021.

COVID-19 second wave: India's GDP growth can slip to 8.2% in FY22, says CRISIL. Business today. 2021. Available at: https://www.businesstoday. in/current/economy-politics/covid-19-second-wave-indias-gdp-growth-can-slip-to-82-in-fy22-says-crisil/story/438737.html?utm_source=recengine&utm_medium=web&referral=yes&utm_content=footerstrip-3&t_source=recengine&t_medium=web&t_content=footerstrip-3&t_psl=True. Accessed on 17 May 2021.

Nomura cuts India's FY22 GDP growth estimate to 12.6% from 13.5% amid 2nd Covid wave. Business today. 2021. Available at: https://www.business today.in/current/corporate/nomura-cuts-india-fy22-gdp-growth-estimate-to-126-from-135-amid-2nd-covid-wave/story/436380.html. Accessed on 17 May 2021.

Moody's revises India's FY22 GDP forecast to 9.3%- Business News. Business today. 2021. Available at: https://www.businesstoday.in/ current/economy-politics/moodys-revises-india-fy22-gdp-forecast-to-93/story/438816.html?utm_ source=recengine&utm_medium=web&referral=yes&utm_content=footerstrip-2&t_source=recengine&t_medium=web&t_ content=footerstrip-2&t_psl=True. Accessed on 17 May 2021.

State of the economy. Reserve Bank of India - RBI Bulletin. 2021. Available at: https://rbi.org.in /scripts/BS_ViewBulletin.aspx?Id=20202. Accessed on 14 May 2021.

Economic survey 2020-21 Volume-2. [Internet]. New Delhi Department of Economic Affairs Ministry of Finance Government of India. 2021. Available at: https://www.indiabudg et.gov.in/ economicsurvey/. Accessed on 14 May 2021.

Covid-19 and its spatial dimensions in India. RBI. 2021. Available at: https://rbi.org.in/scripts/ PublicationsView.aspx?Id=20152. Accessed on 27 October 2021.

Annual report 2020-21. Ministry of micro, small and medium enterprises Government of India. 2021. Available at: https://msme.gov.in/sites/ default/files/MSME-ANNUAL-REPORT-ENGLISH%202020-21.pdf. Accessed on 19 May 2021.

Sanjita J, Ratri P, Pritee P. The impact of COVID-19 on tourism sector in India. Tourism Recreation Research. 2020. Available at: https://www.research gate.net/publication/346492862_The_impact_of_COVID-19_on_tourism_sector _in_India. Accessed on 19 May 2021.

GST Revenue collection for April’ 21 sets new record. Ministry of finance. 2021. Available at: https://pib.gov.in/PressReleasePage.aspx?PRID=1715314. Accessed on 17 May 2021.

Unemployment rate in India. CMIE. 2021. Available at: https://unemploymentinindia.cmi e.com/. Accessed on 19 May 2021.

Monika C, Sodani PR, Shankar D. Effect of COVID-19 on Economy in India: Some Reflections for Policy and Programme. Journal of Health Management. 2020;22(2):169-80.

Annual report 2020-21. Ministry of commerce and industry, Department of commerce, Government of India. 2021. Available at: https://commer ce.gov.in/wp-content/uploads/2021/03/Commerce-English-2020-21.pdf. Accessed on 20 May 2021.

Survey on Computer Software and Information Technology- Enabled Services Exports: 2019-20. 2021. Available at: https://rbi.org.in/scripts/BS_ PressReleaseDisplay.aspx?prid=51278. Accessed on 14 May 2021.