Impact of COVID-19 on Indian Economy
Sources – KPMG, EY, Nomura, MoSPI India’s real GDP decelerated to its lowest in over 6 years in 3Q 2019-20, and the outbreak of COVID-19 posted new challenges. Government has taken steps to contain the spread, such as nationwide restrictions for 21 days and a complete lockdown of the states have bought all the economic activities to standstill barring the essential services. This has an impact on consumption and investments. While Indian businesses, barring a few sectors, can possibly insulate themselves from the global supply chain disruption caused by the outbreak due to lower reliance on intermediate imports, their export COVID-19 infected nations could take a hit. In sum, the three major contributors to GDP – private consumption, investments and external trade, will get affected. Three scenarios can be…