The
Coronavirus or Covid pandemic wrecked havoc in the lives of a large number of
people, societies, nations alike. Moreso, the economies of countries got affected
drastically at the onslaught. The Indian economy was growing at a rate of 3% - 4%
before the advent of the pandemic say, March-April 2020. Moreover in the year 2019
the economy was growing at the rate of 6% ,5% annually. The first lockdown in India was announced in March 2020. All
schools, colleges, markets, shopping malls, hotels/restaurants, parks, public
and private functions/events were banned. Industries, factories ,construction
activities etc. came to a halt. However online services like Work From Home(WFH)
,online shopping ,meetings via video conferencing were the order of the day.
But a large chunk of the population were left jobless with little or no
earning. The economic growth thus got slowed down. The profitabilities of
companies – both government and private decreased, income from tax, incomes of
employees, workers and daily wage earners too slumped. Covid-related
expenditures both public and private inflated. Purchase of medicines, disinfectants,
vaccines, drugs etc. cost the exchequer dearly. The economic growth rate moved
to as low as almost -24% in the first quarter i.e. April-June 2020 of the
Financial Year(FY) 2020-2021, followed by -7.5% in the
next quarter i.e. July-September 2020. Thus the annual growth rate of FY 21 i.e.
April 2020 - March 2021 was -7.3%. Likewise a second Covid wave stuck the
country by around March- April 2021. Although nationwide lockdown was not
announced this time, partial to complete lockdown was imposed in most of the
states. The second wave infected more number of people and more died than the
last. The economy too is likely to contract, this time may be more. The last contraction was
termed as a Technical recession. Although Covid infections and deaths have
started receding since May 21 still some states have increased lockdowns. The
Central government announced economic stimulus package worth 20L crores last
time which would provide some resilience to a faltering economy. Moreover
moratorium on EMI for six months, financial packages, cash-in-hand schemes in
some states and reduction in IGST etc. on purchase of medical equipments would
help the economy a lot better. Yet historic unemployment rates 14%, insecurities
of sources of income/revenue and frequent lockdowns would be a dampner to the
growth of the economy. The way forward would be to contain and fully get rid of
Covid infections and the pandemic and putting the economy back on rails on a
firm footing to achieve reasonable growth rates.