Indian Economy After COVID 19 outbreak

Background "A special economic package is being announced to make India self-reliant," Modi said in his third address to the nation over COVID-19 pandemic. "This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10 per cent of India's GDP." Most economic activity in the country had come to a standstill after the government imposed a 21-day nationwide lockdown beginning March 25 to check the spread of coronavirus. The lockdown has since been extended twice through May 17, with some relaxations to allow the resumption of economic activity. The package, he said, will focus on land, labour, liquidity and laws. It will cater to various sections, including cottage industry, MSMEs, labourers, middle class, and industries. BRIEF STORY The blue-print of INR 20000000000000 economic package has been presented by Honorable FM of India ...

Restarting the Economy While a drastic shutdown of business has been a key part of tackling the COVID-19 pandemic, the economic fallout is spiraling, with almost  10 million people filing for unemployment  in the last two weeks of March and markets dropping precipitously. A key question now is how to restart the economy safely and efficiently when the time comes. Restarting the economy is especially important to prevent a prolonged recession that would take a severe toll on poor and vulnerable people. “We are going to have to restart the economy starting from a depression-level situation, But How? Role of NBFC & MSME India is a country where procuring a loan, is a process which is not just confined to the boundaries of a bank. Banks with all their corporate glamour and credit rating criteria may intimidate a common citizen of our country, which in most parts, still remains a ‘developing country’. Indians are known worldwide for their creativity when it comes to f...

Analysis of Causes of Unemployment India as a developing country is filled with plethora of opportunities for potential employment generation. The real reasons are rooted in an ill-designed education structure that has led to mushrooming of private tuition, teaching shops, and cheating shops. Society is keen on requiring a pass certificate to participate in the labour force and demand jobs. 80% of the graduates churned out of this system in India were found to be unemployable. Analysis of Probable Solution GDP OF 10 COUNTRIES IN R&D- source Google Developed nations spend about 3% of the GDP on R&D, India spends paltry 0.86 % . It comes as no surprise, therefore, that the US has been able to produce innovative companies like Apple, Microsoft, and Amazon, whose combined market capitalization equals India's GDP. Hence, India needs to spend more than 3% of its GDP. Where to invest those 3%? The Confederation of Indian Industry ( CII ) expects eight sect...

With fresh corona virus cases( www.worldhealthorganisation.com )on the rise in India and globally, economic activities are shut with the nation wide lockdown ( https://www.indiatoday.in/diu ) to the extent of 85%. Morgan Stanly has cut India's INC'S earning for the 3rd time since the virus outbreak PRIMA FACIE EFFECTS ON INDIAN ECONOMY Job losses Stretched balance sheet Lower Capex Weak consumer demand First two rounds of lock down already wiped Rs. 52 lacs crore resulting in a multi year low benchmark of SENSEX and NIFTY falling 35% from the Janauary Highs. According to Barclays, the cumulative shut down costs at around $120 billion.  Now the new GDP forecast  is 2.5 instead of 4.5 as stated earlier for F/Y 19-20 and 3.5 instead of 5.2 for F/Y 20-21. FOUR SCENARIOS OF EFFECTS  Scenario-1         Situation worsen in india as well as globally, there will futher selling of domestic stocks. In this case, the GDP may drop below 3.5. ...