Economy of India Affected by COVID-19

Abstract

The effect on the economy of the 2019 coronavirus disease (COVID-19) outbreak in India seems to have been primarily detrimental. India has been undergoing recession before the outbreak as stated by the World Bank, the new disease outbreak has “amplified already existing threats to India's economic situation”. To cope with the crisis, food production and supplementary funding for hospitals as well as for the regions to sectoral rewards and extensions of tax deadlines, the Indian government launched a host of steps. Fast-moving businesses in the world have limited their activities dramatically and concentrate on critical items. On 23 March 2020, Indian capital markets reported their worst record declines. The Indians have debated lives and livelihoods with the government declaring first that livelihoods were prioritized and then livelihood and life were given equal value. This paper summarizes the Indian economy in the pre-COVID-19 timeframe, the possible impacts of the shocks on different segments of the economy, the Central Government's and the Reserve Bank of India's policies announced so far to mitigate the economic catastrophe and puts forth a collection of policy proposals for some segments.