Impact of Coronavirus on India and World Economy

On 20th April 2020, it was reported that more than 20 lakh people were infected worldwide and 1.27 lakh died due to the Coronavirus pandemic. Looking at the rate of the spread, the pandemic shows no sign of slowing down any soon.

India took a brave step to Call the country into lockdown because that seems the only viable option to control the spread. Scientists and healthcare professionals around the world are working on finding a vaccine to fight the spread.

However, amid the lockdown, the economies around the world are facing a major issue with the GDP growth and economic stability. The International Monetary Fund (IMF) recently revised its global GDP growth estimate. It has gone from 3.3% from around 3 months ago to a contraction of 3%. This phenomenon has not been seen since the Great Depression of the 1930s.

According to a recent report, there is an assumption that the global Economy would start recovering from 2021. The priority right now is to minimise the pandemic’s impact on human lives and the economy.

On 16th April 2020, Prime Minister Narendra Modi held a meeting along with Finance Minister Nirmala Sitharaman to discuss the impact of the pandemic on the Indian economy. The empowered group set up by the central government headed by Economic Affairs minister Atanu Chakraborty have been asked to work on relief and welfare measures for the poor.

PM Modi has expressed concern in his address to the nation on 14th April 2020 and reminded the population that efforts have been taken to help the needy through Pradhan Mantri Gareeb Kalyan Yojana. FM Nirmala Sitharaman had also announced Rs. 1.7 lakh crore package that included free foodgrains, cooking gas and cash doles to women and poor citizens for 3 months.

The Union Cabinet has allowed a 30% cut in salaries and allowances of the Members of Parliament for one year and the Members of Parliament Local Area Development Scheme will be suspended. The funds will be directed towards improving the medical infrastructure. MPs get Rs. 5 crore every year as part of this scheme.

List of Countries Undergoing Economic Recession

1. United States of America

The death rate in New York city has crossed the 10,000 marks, while the country has lost over 26,000 people to the virus. Lockdown has been extended.

The following table shows the GDP rate in the economy:

2. Japan

According to a recent report, the Coronavirus situation in Japan is considerably under control. However, experts mention that the fragile economy of Japan won’t be able to withstand global shutdowns.

Here is a table listing the GDP of Japan:

3. China

The situation in China is improving and growth is likely to be expected at a slower pace.

The following table shows the state of GDP in the economy:

4. India

According to the IMF, India will remain as the fastest-growing major economy in 2020. However, the COVID-19 onslaught is only at its early stages in India.

The following table shows the state of GDP in the economy:

5. United Kingdom

The COVID-19 onslaught in the UK is still hitting high numbers. This can negatively affect the economy.

The following table shows the state of GDP in the economy:

6. Germany

Germany is battling the virus and a report suggests that the economy there is expected to contract by 7%. The following table shows the state of GDP in the economy:

7. Italy

According to the IMF’s prediction, Italy will be the majorly hit economy of 2020.

The following table shows the state of GDP in the economy:

8. France

France is the worst hit economy after Italy and Spain. The extended lockdowns are expected to cause the economy to contract by 7.2% in 2020.

The following table shows the state of GDP in the economy:

9. Brazil

Brazil is in the initial stages of the Covid-19 pandemic. Its impact is yet to be seen. The following table shows the state of GDP in the economy:

10. Canada

The onslaught of the COVID-19 virus is slowing down in Canada. The following table shows the state of GDP in the economy:

Conclusion

The spread of Coronavirus pandemic across the world is definitely an area of concern. However, the good news is that the governments and healthcare professionals around the world are putting in the best of resources to curb the spread. The economies are being strengthened with internal money from businessmen and professionals who are contributing to the uplifting of the same.