Impact of COVID-19 on Indian Economy

As the global economy is falling into a phenomenal recession due to COVID-19 (coronavirus) which is rapidly spreading across the World, health Services worldwide are increasingly abashed, also leads India into an arduous situation. The country’s growth rate has also reduced by 1.9% by International Monetary Fund from 5.8% for 2020-21. Businesses are in stress for their profit and trying to cover the operational cost, wondering if they will have customers which make them able to pay their employees. The informal sector especially the labourers are hurt the most as their wages are disappeared. Banks are realising, especially for small and medium sized (MSMEs), companies will default and that is why trying to protect the financial stability. Investors are in big confusion and badly hit in this situation. Meanwhile, the government of India is engaged to examine the impact of COVID-19 and improvising the tools to save economies from collapse. They know it well that this is unpalatable time, it will be known in the future only with the decision taken today