Coronavirus Impact and Economic Crisis in India

This is  an  Article different from the Genre of this Blog but I thought to Draw yours Attention towards it.

India is on the verge of an unprecedented economic catastrophe as the humanitarian disaster from the Covid-19 pandemic unfolds.

The Crisis That Shattered India's Economic Dreams.India is facing its biggest crisis in decades, with a lockdown in a nation of 1.3 billion people likely to result in economic recession, millions of job losses and possible starvation among the poor.

Effects :

In India, GDP growth is already at a decadal low and any further dent in economic output will bring more pain to workers who have seen their wages erode in recent times.

To prevent GDP from contracting in the first quarter, there has to be a lot of recouping in “the 10 weeks following the shutdown.” GDP can grow at 3% if there is a recovery of losses and the lockdown ends soon. Two factors that have to aggressively drive this recovery are government expenditure and the banking sector which should augment credit to all the sectors. Growth could be lower at 1.5-2% if this does not happen.

Reforms after Crisis:

2020 could be to Narendra Modi what 1991 was to P.V. Narasimha Rao: a lasting legacy,A Need of Economic Reform.

Now, This virus crisis is a chance for India to finally reform its economy. A looming economic crisis triggered by the coronavirus pandemic is a chance for India to enact sweeping reforms to fix ailing sectors and attract more foreign investment to the country.

“It is said India reforms only in crisis,” Raghuram Rajan, the former governor of the Reserve Bank of India, wrote in a LinkedIn post.

India has a history of taking reform steps during periods of crisis. For example, in 1991-92, it freed the private sector from a myriad of government controls, deregulated financial markets, reduced import tariffs and opened up the economy to more foreign investment to avoid a balance of payments crisis.

Time-line of Reforms Induced by Crisis in India :

• 1991-92: With the economy on the brink of a balance-of-payments crisis, the then government cut import tariffs, abolished industrial licensing to foster competition. A stock market scam during that period led to formation of the capital market regulator -- the Securities and Exchange Board of India
• 1997-98: Economic sanctions post India’s nuclear weapons tests, and the Asian financial crisis prompted large-scale divestment of state-run assets to garner revenues
• 2014: Post the Federal Reserve’s taper tantrum, authorities started work on an inflation-targeting regime for the central bank and an asset quality review that made disclosure of India’s bad loans more transparent.

Major Point :

Role of Individuals in this Reform:

I and You as an Individual can play our part in this Reform.

Source:EconomicTimes

We together can fight this War against the economic crisis by giving our contribution to the economy,We just have to ensure buying Goods or Products MADE IN INDIA so that the money remains in our country.

I am not against the 'Globalisation' but in this current scenario of Crisis,We should support and prefer "Localisation".

We should prefer the Products that are Made In India whenever we have the option to do so.

Join the #JantaArmy at http://mainbhifauji.com/

Let's take a step towards building an #AtmanirbharBharat

Thanks! and Share this Post to Ecourage others to prefer products Made In India..