Zemima Khan is a professional writer but before a writer, she is an amazing speaker and a communicator. She likes to observe and weave story
The COVID-19 has largely affected the Indian economy in the past eight months. After ages, COVID-19 has appeared on earth as a human disaster and not just a yearly natural disaster. Various reports and surveys say that more than 200 countries have faced the challenge of defeating COVID-19 while some could support the medical facility and some could not.
If you know what first-world countries mean, then you will know that India is not one of them. Very clearly, India is a developing country which also means that the economy of India is also developing. Hence, there is no question about how badly COVID-19 has affected the Indian economy.
The ultimate result of the fall of the Indian economy has various reasons and here we will mention some of the reasons. A large number of youths in India have lost their jobs in 2020 due to COVID-19, which has led to a lack of balance in the economy. In the language of Finance, it can be said that the Indian economy is going through a depression, and also high unemployment.
Various Sectors Affected in COVID-19
There are various reasons which have weakened the Indian economy largely and here we are going to discuss the various ways in which it has happened. Here we will discuss the causes in detail.
Restaurants in India - India is famous for various Indian food and the maximum number of food lovers. The National Restaurant Association of India had declared that over 500,000 restaurants must be kept closed to stop the spread of COVID-19 in 2020. The restaurants all over India remained closed for nearly 5 months which caused a major loss in the Indian economy. When the restaurants were started, the delivery partners helped the restaurants to run relatively well. With various ups and down the economy dismantled and settled in various ways in India.
Agriculture and Food - The food and agriculture contribute largely to the Indian GDP, but due to the major effect of the COVID-19, there has been a loss in the food and agricultural sector. India also manufactures a large number of dairy and spices products which was also not being done in the COVID-19 situation as a result of which the Indian economy sank.
Online Business - In today’s Indian economy, online businesses play a vital role in the country. The only sector which has done exceedingly well in the year 2020 was the online business. The online business has steeped the GDP to some extent because due to COVID-19 more and more companies and people have switched on to online businesses. The use of online facilities has been very useful for the COVID period and more people have used online facilities to meet their regular need in day to day life.
Drop in the Economy
It has been found in the reports that 45% of Indian households have dropped in their income annually. Many of the Indians have lost their jobs, and many could not even get back with any of the new jobs. The lockdown during COVID-19 has largely affected the labor class or the daily wage earners.
However, the only sector which has shown a major rise in the economy is the hospitality and the medical sector. The medical sector in India has helped raise the status of the Indian economy to a better state. At this point, it becomes important that we hold onto our patience and understanding so that we can start 2021 on a good note.