The coronavirus epidemic is unlike any other economic crisis the globe has ever witnessed. Lockdowns and the fear of infection have interrupted or periodically slowed business activity throughout the globe, putting all of our textbook concepts of how to boost economic development in the face of a slowdown meaningless. However, let’s talk about Positive Impact of Covid-19 on Indian Economy:
Table of Contents
Introduction
While the judgement is still out on how many quarters it will take before a U-shaped or a V-shaped recovery will be apparent, what is universally acknowledged is that the epidemic will induce a paradigm shift in how we live and how we work.
Moreover, governments and central banks throughout the world have been extremely proactive doing what they can to help companies and restore employment with extraordinary fiscal and monetary stimulus.
As a result, even after the epidemic has passed, one may anticipate the economic consequences to last for a long period. So, let’s have a look at some of the long-term benefits of the coronavirus epidemic.
Positive Impact of Covid-19 on Indian Economy
There is a silver lining to every cloud, even coronavirus. In five ways, it is assisting in the transformation of important sections of the global economy.
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Digitization
Demonetization was the shock that propelled India into the digital era, as individuals began to use online payments due to a lack of currency or a scarcity of cash.
Covid-19 is the shock that is pushing everyone to adopt digital in anything from grocery shopping to seeking online doctor consultations for minor ailments.
When compared to 78 percent in China and over 70 percent in the United States, India’s entire e-commerce buyer base is very low, at 30 percent of its online population.
Morgan Stanley forecasts that India’s internet buyers would increase to 590 million by 2020, up from 190 million now, in a 53-page research titled “India’s Digital Economy in a Post-Covid-19 World.” The average amount spent by an online consumer is expected to roughly double to $318.
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Supply Chain
For a fairly long time, China has been the globe’s manufacturing industry, and as a consequence, it has become the backbone of global supply chains for everything from semiconductors to medication APIs. The globe has realised that putting all of one’s eggs in one basket may not be a smart idea.
This would imply that nations like India, which has long awaited its time in the globe, would witness an increase in the number of international firms setting up shop and creating large-scale employment.
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Reforms
The coronavirus epidemic has prompted India to embark on long-awaited improvements that have been impeded by bureaucracy.
For example, the government has modernised the coal industry and altered labour rules that were ostensibly impeding firms.
Furthermore, the administration has promised agricultural market changes, including laws that would empower farmers to sell their goods to whoever they choose.
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Liquidity
To pump liquidity into the stock markets, central banks throughout the world have slashed interest rates and started borrowing programmes.
In March, the Reserve Bank of India announced a plan to provide Rs 3.74 lakh crore in liquidity to the financial markets.
While banks may not have started lending right away, their cash reserves, along with low interest rates, will allow individuals and companies to borrow in large amounts if the economy begins to show signs of life.
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Working Culture
Many businesses have rethought their office facilities and on-site operations as a result of the coronavirus epidemic. Tech behemoths like Facebook, Google, and Twitter have already made pronouncements about allowing employees to work from home in the long run.
Many more firms are likely to follow suit as they realise that office space costs may be reduced and productivity can be tracked more accurately using to-do timesheets.
More people are discovering that the gig economy allows them to earn money while simultaneously pursuing their hobbies.
Few Last Recessions
In the last century, every major global economic crisis has been followed by a period of prosperity.
Despite the Great Depression of the 1930s, the post-World War II recession, oil shocks in the 1970s, and, most recently, the Great Recession that followed the Lehman Brothers collapse, real GDP growth throughout the twentieth and twenty-first centuries has been exponential.
There is no reason to believe that the global economy will not improve this time. Creative destruction — a churning in which inefficient systems and firms are weeded out and new challengers arise — is a common result of economic crises.
Summary
These proposed improvements might go a long way toward assisting the globe in making the transition to more fair and sustainable growth.
This is all from our side regarding the Positive Impact of Covid-19 on Indian Economy. Let us know your views in the comment section.
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FAQ
Negative impact of COVID-19 on Indian economy
More than 45 percent of families in India reported a decrease in income from the previous year. During the first 21 days of total lockdown, which was announced following the coronavirus epidemic, the Indian economy was anticipated to lose over 32,000 crore (US$4.5 billion) every day.
Impact of Covid-19 on Indian economy 2021
The COVID-19 epidemic is still inflicting havoc on India's lives, livelihoods, and economy, with a deadly second wave wrecking devastation even as a third wave looms huge. Consumer and corporate confidence has been eroded by rising uncertainty. Over the two-year period FY20 to FY22, growth might be nil or negative.
Impact of COVID-19 on Indian economy presentation
The COVID-19 epidemic is still inflicting havoc on India's lives, livelihoods, and economy, with a deadly second wave wrecking devastation even as a third wave looms huge. Consumer and corporate confidence has been eroded by rising uncertainty. Over the two-year period FY20 to FY22, growth might be nil or negative.
Positive impact of covid-19 on indian economy in points?
Major Positive impacts are Digitization, Supply Chain, Reforms and Liquidity.
Impact of covid-19 on indian economy points?
The coronavirus epidemic has had a significant influence on India's economic activities and the loss of human life. With a few significant exceptions, almost all industries have been negatively impacted as domestic demand and exports have dramatically decreased, with few notable outliers where substantial growth has been recorded.
