Impact of Covid 19 on indian economy Prepared By

Transcript:Impact of Covid 19 on indian economy Prepared By:
Impact of Covid 19 on indian economy Prepared By Miss. Akshada Zurale (Assistant Professor) Overview Coronavirus (CoV) is a large family of viruses that causes illness. It ranges from the common cold to more severe diseases like Middle East Respiratory Syndrome (MERS-CoV) and Severe Acute Respiratory Syndrome (SARS-CoV). The novel coronavirus is a new strain of virus that has not been identified in human so far. WHO is working closely with global experts, governments, and other health organisations to provide advice to the countries about precautionary and preventive measures. We can’t ignore the fact that the outbreak of COVID-19 in China is expected to have a significant impact on the economy globally including economic slowdown, trade, supply chain disruption, commodities, and logistics. The rapid outbreak of deadly Coronavirus pandemic in the country has not only led to a panic-like situation amongst the citizens, but has also hit Indian economy - which was already reeling under a significant slowdown over the past few quarters. The medical rampant has presented fresh set of challenges for the country's economy, causing severe disruptive impact on investment and consumption demand. Country's economy, which was growing at a six-year low rate of 4.7 per cent in the third quarter of the current fiscal, had strong hopes of recovery in the fourth quarter. However, the new Coronavirus epidemic has made the recovery extremely difficult in the near to medium term. According to a survey conducted by industry body FICCI, the outbreak has assembled new roadblocks for the Indian economy now, causing severe disruptive impact on both demand and supply side elements which has the potential to derail India’s growth story. How it will Affect on Indian Economy Up to a large extent, it will impact the Indian industry. In imports, the dependence of India on China is huge. Of the top 20 products (at the two-digit of HS Code) that India imports from the world, China accounts for a significant share in most of them. India’s total electronic imports account for 45% of China. Around one-third of machinery and almost two-fifths of organic chemicals that India purchases from the world come from China? For automotive parts and fertilisers China’s share in India’s import is more than 25%. Around 65 to 70% of active pharmaceutical ingredients and around 90% of certain mobile phones come from China to India. Therefore, we can say that due to the current outbreak