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How has COVID-19 disrupted the Economic Life across India and the World?

Mar 31, 2020

By: Student Contributor, University Blog Team

The coronavirus has made a devastating impact on the economy of the world. Countries and continents are in lockdown to stop the spreading of the life-threatening virus. For decades, the economic professionals have been suffering from a stoic disinclination into adapting multifaceted approaches. Coronavirus pandemic is certainly transforming the economic life across the world, and now the professionals in the field of economics are leaving their comfort zone to overcome the near-sighted economic crisis.

Coronavirus is devouring the economy of countries, one after another and this disruption would continue to happen. The need for an hour is that the economics professionals have to come up with analytical foundations to curate sound policymaking as well as crisis management. If the economists put their expertise and critical thinking in advance to meet up the topsy-turvy realities, they will come up with better analysis and bring reforms to tackle the scenario.

Combating a deadly virus that has already claimed the lives of almost 1 million people across the globe, the response needed must be novel as well as inevitably costly. Moreover, central banks and governments are chasing unprecedented measures when it comes to diminishing the worldwide downturn. The recession that Coronavirus has brought will lead to an era of depression which has been accounted for in the past during the 1920s and also after world-altering events. Further, people across the world have to brace themselves as they’ll be witnessing scraping off the distinction betwixt mainstream economics in developing countries and advanced economics.

Natural Disasters have played a crucial role in pushing economies down

Some experts are suggesting that this change was inevitable and Coronavirus played the role of a catalyst to bring a period of recession earlier than anybody anticipated. In addition to this, the world is viewing overwhelming evidence of insurmountable declines in terms of production and consumption. 

Analysts residing across countries with advanced economics have to consider how several regions were devastated by natural disasters in the past. In the near-sighted future, this would empower them to overcome the recession period which has arrived out of nowhere. Wherever natural disasters have struck, there was a sudden stop in the economy as the devastation which followed in the lives of everyday people was massive. Even countries with strong economic status were stooping to a level where they will operate the same as a developing country.

In India, if the pandemic nature of Covid-19 is put into contrast with money, then the most plausible outcome is that people would have to spend money to survive. However, even with a surplus amount of money, they are confined to the walls of their homes as the lockdown is a countrywide phenomenon. In addition to this, the stores across cities, states, in India are willing to sell their products to earn profits and also serve fellow human beings, but their hands are tied. People across the country are also witnessing the scenario where suppliers are not sending goods to stores which results in minimal availability of groceries and food materials.

As of now, nobody in India or the world knows how they will overcome the unprecedented recession as the severity of it is alarming and the duration is unpredictable. This is where economists across India and the globe would have to curate a robust health policy alongside health officials, then the dynamics of the economy will change as it would keep the contamination of Coronavirus at bay. Once the spread of the virus is controlled, the affected people will be provided with immediate medical assistance.

People are having an open mind to get through this ordeal

The world has come together to deal with Coronavirus and everyone is waiting for the moment when Covid-19 becomes treatable, but there will still be uncertainty and fear, and over time it will deepen. And this is where the disruption in the economy of India and the world will be at the maximum. To witness a recovery in economy and stability in finance, people have to rely on the action of decision-makers, leaders who are in charge of making policies in India.

The worst thing that the policymakers have to go through is to come out of their comfort zone in the abrupt and vehement scenario. There are chances that the experts will lose their focus due to panic and over-reaction will ultimately lead to immense disruption in the economy. Once the economy starts to suffer, so will the financial liquidation. Hence, there is a dire need for economists to do what they do best, use critical thinking to foresee the challenges which are to come in the forthcoming days or months. Before the recession and depression become massive and uncontrollable, it is necessary to introduce smart policies to make the most out of the situation.

The current statistics suggest that 64% of the businesses in India came together to tackle pandemic Coronavirus after economists weighed in their expertise given that there were setbacks. According to surveys, around 3% of medium and small businesses were already prepared for the recession that Coronavirus has brought. At the same time, 39% of large businesses are already being consulted by economists; hence they continue to make profits given that the country is put in a 21-day lockdown.

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