How Indians lost 13 Lakh Crore due to the Covid-19 pandemic

March 8, 2021March 8, 2021 Pooja G5811

Ever since the coronavirus emerged from the labs of Wuhan in December 2019, the whole world has been in hysteria.

Every country shut down its operations and went into lockdowns in march 2020 to stop the spread of the coronavirus. The covid-19 pandemic not only ate away millions of people but also bruised the world economy completely resulting in peoples losing jobs, becoming homeless, starvation, poverty has ever since increased a lot.

Almost after 10 months when the lockdowns were slowly removed and people were seeing a fresh air of hope and getting back to work but at the beginning of January countries like the United Kingdom, South Africa, Brazil saw a new mutation of the coronavirus, which was 100% more dangerous than the actual virus.

Due to the fear of the second wave of covid-19, most countries are going back into lockdowns again.

The economy hasn’t recovered yet from the first wave and now the hit of a second wave can cause frenzy around the world.

Especially in a country like India with more than 1.40 billion population, the situation is a lot crucial than seen.

After the wild virus breakdown in Maharashtra now, different states and districts are now shutting down schools and colleges announcing night curfews, and moving back to the same situation the whole world faced back in March 2020.

The corona pandemic has had a huge impact on the incomes of ordinary, middle-class families.

The magnitude of this is likely to continue in 2021 as well, according to a report.

The report states that the economy is slowing going down mainly due to falling purchasing power.

UBS Securities India reports that Rs 13 lakh crore of revenue in India has been wiped out due to the covid-19 pandemic.

The report reveals that the biggest impact was mainly due to layoffs.

Most people from the age of 20-30 have lost their jobs due to the pandemic and are still losing, companies are suffering loss and are still cutting down employees to stay on the safer side.

However, UBS Securities India’s economists said that the growth in the second and third quarters of the 2020-21 financial year was surprising.

The majority of the family incomes had declined during the Covid-19 pandemic, and that the impact would be felt on public consumption capacity until June 2021.

GDP (Gross Domestic Product) growth slowed down to minus 23.9 percent in the first quarter ending June 2020, and further went down to 7.5 percent in the second quarter.

Although the growth of 0.4 percent was recorded in the December quarter.

According to UBS Securities experts, more investment is likely to happen in the future as there was growth in the second and third quarters.

Cash consumption and investment in the market have risen sharply in the wake of the lockdown easing, which has seen a recovery in growth.

Most of these are non-performing investments that have stalled due to the lockdown.

On the other hand, low-interest rate home loans, incentives, and the sudden recovery of sectors such as real estate after the lockdown have become the drivers of the country’s growth.

While the experts are expecting the resurgence of the economy, states are shutting down one-by-one due to the sudden surge of covid-19 cases.

On one hand, the government is making efforts and trying to fasten the process of covid-19 vaccination to avoid the spread of coronavirus while on the other hand, the number of active cases in India has reached 11.2 million with more than 18,700 cases adding every day and 100+ deaths every day.