Corona Epidemic impact on Indian economy
Terror and tension of Corona Virus
Nowadays Corona epidemic is spread all around India. There were more than 132,000 cases of corona in India till May 25, 2020.
Corona has made a tremendous shock to the Indian economy which already going through slowdown.
Due to Corona, all business has been closed for almost two months.
Thousands of people who earn and spend on food every day have become unemployed. Small businesses have been hard hit financially.
However, the government has invested in markets under several economic policies.
The RBI constantly infusing capital in the market. The bank has also given rebate on installments for three months.
But Corona has had a profound impact on the economy. It will take a long time to recover from this.
Tourism, aviation and hotel industry are already facing recession due to long lockdown.
Thousands of people have lost their employment in these areas. These regions are demanding a good economic package from the government. So that it can handle itself in recession.
The government’s earnings are also completely stalled. There has been no income from GST for two months.
Indian Railways, which serves lakhs of people every day, is completely closed. Railway monthly income of million is also closed.
The States also have limited amount of income and budget after the implementation of GST.
The state is completely dependent on the Center for financial help. The center is also a victim of financial crisis due to low income.
Therefore, it is not able to fully help the states. A large number of migrant laborers have come from other states in poor and backward states. Giving them basic facilities is a big challange for the state government.
It is surprising that despite the Corona epidemic, in the Indian stock market, there is a boom and very less volatility.
There has not been any decline in the share market and the Nifty of the share market is stable between 9000 and 10,000 points.
Everyone is surprised that when no business activity is happening, why the stock market is not falling fast.
Somebody is saying that the operators are playing their games. Someone says that mutual fund houses are using the money of retail customers to accelerate the share market.
Others are saying that foreign investors are selling their stocks and start booking profit. No one knows the truth, but something is cooking and the retail investor is worried about what to do.
Both the Central Government and the State Government are in a dilemma as to what to do and what not to do.
India is a developing country and the government and the public have limited income and savings.
Corona infection is also not decreasing. So if the corona lockdown is lifted, it can spread more quickly. As in India, health services are not up to the mark compare to a large population.
The rebate given on the corona lockdown can be very expensive for the government. People can be killed on a very large scale. An atmosphere of chaos can be created in hospitals.
On the other hand if the government continues the lockdown. Millions of working class people could face a huge economic problem and they can create an atmosphere of anarchy.
The development work of the country can be completely stopped due to the income of the government being closed for a long time.
Therefore, the government will have to find the solution of this corona problem very closely and quickly. Even a snake like corona dies and sticks are not broken.
The lives of the people should also be saved, and the financial loss should also be minimized.