The document discusses the impact of COVID-19 on the Indian economy. It notes that India reported its first COVID-19 case in January 2020. The pandemic caused a catastrophic health crisis and the lockdown measures implemented in March 2020 had a significant negative impact on various economic sectors in India like tourism, manufacturing, and MSMEs. This led to a sharp rise in unemployment and fall in GDP. The government announced various economic relief packages to support the economy during the crisis.

1. ON INDIA
ECO
PROJECT

2. SARS-CoV-2
• FIRST REPORTED BY OFFICIALS IN WUHAN CITY,
CHINA, IN DECEMBER 2019
A Deadly Pathogen which spread widely and caused Global recession
and Humanatic devastation

3. • On 30 January, India reported its first case of COVID-19 in Kerala,
which rose to three cases by 3 February.
• Due to its highly contagious nature it spread from Kerala to
Maharashtra, Punjab, Delhi and all corners of India, quick like a
time lapse.
• It caused catastrophic health issues.
• It had a flash crash impact on Indian Economy in different
sectors like, witnessed by BSE SENSEX, INDIAN STOCK MARKET
and many economic development projects postponed.
• India's growth in the fourth quarter of the fiscal year 2020 went
down to 3.1% according to the Ministry of Statistics.

4. IMPACT OF COVID ON INDIAN ECONOMY
Impact in brief :-
• Largest GDP contraction ever in Q1 (April–June)
FY2020–2021 at -24%
• Sharp rise in unemployment
• Stress on supply chains
• Decrease in government income
• COLLAPSE OF THE TOURISM INDUSTRY
• COLLAPSE OF THE HOSPITALITY INDUSTRY
• REDUCED CONSUMER ACTIVITY
• PLUNGE IN FUEL CONSUMPTION. RISE IN LPG
SALES.
• TRADE TENSIONS WITH CHINA

5. ASSESSMENT OF LOSS
INDIA worst affected economies due to COVID 19 - negative trade impact
of more than USD 350 MILLION.
estimated loss of USD 29.9 BILLION to INDIAN
ECONOMY due to this outbreak.
around INR 8.5 LAKH CRORE (US$120
BILLION).

6. Lockdown
• LOCKDOWN
Government took many actions during
pandemic and still on.
The most significant action
was the lockdown.
• One day Janta Cerfew
(22 March 2020)
Lockdown Phase 1 (25 March – 14 April)
Lockdown Phase 2 (15 April – 3 May)
Lockdown Phase 3 (4–17 May)
Lockdown Phase 4 (18–31 May)
"From the economy's point
of view, the lockdown
undoubtedly looks costly
right now, but compared to
the lives of Indian
citizens, it is nothing.“
- PM Modi
• Unlock started from 1st June

7. Impact of lockdown
– due to lockdown people are unable to get outside and buy stuffs and
shops were shutdown.
– factories, firms and all types manufacturing
companies were shutdown temporarily.
– external trade was completely prohibited during the
lockdown, all ports and means are closed.
– like metals, fertilizers, energy etc.
– on tourism, hotels and aviation industry.
– an estimated 14 crore (140 million) people lost employment
while salaries were cut for many others and unemployment rose from 6.7% on 15
March to 26% on 19 April.
• The was estimated to lose over ₹32,000 crore (US$4.5 billion)
every day during the first 21-days of complete lockdown

8. IMPACT ON VARIOUS SECTORS
• Unemployment – this sector faced the
most unemployment as most of em’ are
farmers or daily wages workers.
• Loss of production – due to inability of the
farmers to access the market due to issues
in transportation as well operation of
markets.
• Commercial crops have become non
remunerative – rise in labour charges
• PM-KISAN Scheme - by the end of
April, ₹17,986 Cr (US$2.5 billion) had been
transferred to farmers.
"10% of farmers could not harvest their crop in the
past month and 60% of those who did harvest
reported a yield loss"

9. • Recession – up to 53% of businesses
have indicated some impact on their
operations due to COVID-19 lockdown.
• Major Companies – Larsen & Toubro,
Bharat Forge, UltraTech Cement,
Grasim Industries, Aditya Birla Group,
BHEL ,Tata Motors – Production
temporarily suspended
• Essentials - Stress on the supply chains
of essential commodities. Hence,
focused on the production and supply of
essential items only.

10. • Tourism Industry - estimated loss about
Rs.15,000 crore (US$2.1 billion) for
March and April alone.
• The Live Events Industry -estimated loss
of Rs.3000 crores plus.
• OLA Cabs - Revenue went down nearly
95% in March-April resulting in 1400
layoffs.
• Electricity – consumption declined 30
percent below normal levels at the end
of march.
• Pharmaceutical Industry - generate
more than $6 billion in revenues by
the end of 2020; however, it too has
been affected by Covid.
• The Economic Impact has already been
between $160 billion(5.6 percent of
GDP)and $175 billion(6.0 percent of
GDP).

11. MIGRANT WORKERS AND
LABOUR FORCE

12. • Due to the lockdown, daily-wage workers
(the urban poor and migrant laborers) were
left with no work. At the same time, the
lockdown restrictions put a stop on the
movement of buses and trains. Millions of
migrant workers ended up walking back to
their villages.
• In late March, FM Sitharaman announced
a ₹1.7 lakh crore (US$24 billion) spending
plan for the poor.
• In September 2020, Minister of State for
Home Affairs - Nityanand Rai stated that
the exodus of migrant workers had been
caused by "panic created by fake news
regarding the duration of lockdown."
• Despite government promises and
schemes to generate employment in
rural areas, some migrant workers
began going back to the cities due to
lack of employment in their
hometowns, as lockdown restrictions
were reduced as part of Unlock 1.0 in
June.
• A study conducted in April-May stated
that 77% migrant workers were
prepared to return to cities for work.

13. • In mid-April the International Monetary Fund
projection for India for the FY21 of (-)1.9%
GDP growth was still the highest among G-20
nations.
• For the states, the total loss due to COVID-19 is
estimated at 13.5% of the total Gross State
Domestic product.
• On 1 September 2020, the Ministry of
Statistics and Programme
Implementation released the GDP figures for
Q1 FY2021, which showed a contraction of
24%.
6.6 6.1
4.2
-5
FY18 FY19 FY20
(est.)
FY21 (est.)
5.2
4.4
4.1
3.1
Q1 Q2 Q3 Q4
“India's fourth
recession since
independence, the
first since
liberalization and
perhaps the worst to
date, is here”
CRISIL

14. • However, on 25 March, SENSEX posted
its biggest gains in 11 years, adding a
value of ₹4.7 Lakh Cr (US$66 billion)
for investors.
• By 29 April,
Nifty held the
9500 mark.
• On 23 March 2020, stock
markets in India post worst
losses in history. SENSEX fell
4000 points (13.15%) and NES
NIFTY fell 1150 points (12.98%).

15. • Revenue collection for both state and
central governments became negligible.
• States Demanded - relaxing liquor sale
norms.
• Central Government earns INR 2.48 lakh
crores from excise duty on liquor annually.
• April Collection of GST lower than March's
earning of INR 97.6 thousand crores, falling
short of the minimum target of INR 1 lakh
crores.
• The largest GDP contributor almost 30% and
employing over 120 million.
• But the rein of covid Impacted MSME’s
earnings by 20-50%, micro and small
enterprises faced the maximum heat.
• Lockdown responsible for - shrinkage of
exports, cessation of production, non-
availability of manpower, the uncertainty of
consumption, and liquidity squeeze in the
market.

16. • During lockdown, Amazon, Walmart, Flipkart, etc.
Temporarily Suspended some of its services and started
selling and distributing essentials.
• During the Unlock phase, overall e-commerce has not
just Recovered but witnessed an order-volume growth
of 17% as of June 2020.
• Brand Websites have witnessed 88% order volume
growth as compared to 32% order volume growth on
marketplaces
• Volume Growth on Beauty & wellness products rose
~130%, FMCG & agriculture 55% and health &
pharma 38%.

17. • AIM - to make the country and its citizens independent and
self-reliant in all senses.
• Alternative to China
• On 12 May the Prime Minister, in an address to the nation,
said that the coronavirus crisis should be seen as an
opportunity, laying emphasis on domestic products and
“Economic Self - Reliance", an Atmanirbhar Bharat.
• On 12 November, the government announced a ₹2.65 Lakh
Cr (US$37 billion) worth Economic Stimulus package,
labelled as Atmanirbhar Bharat Abhiyan 3.0.
Economy
Infrastructure
System
Vibrant Demography
Demand
• Digital & Internet Economy
• Online-Skill development
• Online Groceries
• Digital Content
• Specialty Chemicals
• Pharmaceutical

18. • Extra Funds for healthcare and for the states
• Sector Related Incentives
• Tax Deadline Extensions
• Economic Relief measures for the poor - over INR
170,000 crores (US$24 billion)
• RBI - announced INR 374,000 crores (US$52 billion)
package to the country's financial system
• To protect Indian companies , the Government changed
India's foreign direct Investment Policy.
• The Department of Military Affairs-All
Capital acquisitions postponed
• India to minimize costly Defence
Procurement
• PM announced economic package
worth INR 20 Lakh Cr (US$280 billion),
10% of India's GDP, with emphasis on
India as a Self-Reliant Nation.
0 200000 400000 600000 800000 1000000 1200000
13th & 17th Announcements
Earlier Measures incl PMGKP
RBI Measures
Stimulus by Atmanirbhar Bharat Package (Cr.)
Stimulus by Atmanirbhar Bharat Package (Cr.)

19. • Invest in sustainable infrastructure India too
should take this opportunity to increase
support for clean & renewable energy, like,
rooftop solar, public transport, etc will create
more jobs than traditional investments.
Use fiscal mechanisms for recovery and resilience
Fiscal mechanisms can help support recovery
and resilience efforts, while promoting low-
carbon development. A wonderful opportunity
to encourage greater sustainability by making
support to cleaner technologies and fuel
efficiency.
• Regulate enabling technologies Future
e-commerce sector will grow at
flash rise. While supporting the
development of such sectors, it is
important to put the right
regulations in place to ensure data
privacy and consumer protection.
• Improve demand by injecting liquidity
• Reduce Income Tax/ Corporation Tax
rates
• Simplify GST and less tax slabs

20. • Economic impact of the COVID-19 pandemic in India –
Wikipedia
• WHO Covid-19 Dashboard
• "Lockdown hurts economy but saving life is more important: PM
Modi". India Today. 14 April 2020.
• DR SANJEEV CHADDHA – ECONOMIC IMPACT OF
COVID/SLIDESHARE.NET
• Public Health Foundation of India, Harvard T H Chan School of Public
Health and the Centre for Sustainable Agriculture, The Indian
Express.
• FICCI COVID-19. SURVEY
• SHARMA, MIHIR (1 APRIL 2020). "CORONAVIRUS EXPOSES INDIA'S
OFFICIAL CALLOUSNESS". BLOOMBERGQUINT.
• Fredrick, Oliver (3 June 2020). "Lucknow's 'lifeline' to
Mumbai back on track". Hindustan Times.
• Misra, Udit (30 May 2020). "Explained: What
deceleration in GDP growth rate tells us about state
of Indian economy". The Indian Express.
• "Stock markets post worst losses in history; Sensex
crashes 3,935 points amid coronavirus
lockdown". The Indian Express.
• Agyeya Tripathi (23 September 2020). “Covid-19
affect on MSMEs”. Times Of India.
• Sarwar, Nadeem (25 March 2020). "Flipkart
Suspends Services as India Enters 21-Day
Coronavirus Lockdown". NDTV Gadgets 360.
• Misra, Udit (13 May 2020). "PM Modi's self-reliant
India Mission economic package: Here is the fine
print". The Indian Express.
• Aman Srivastava (28 April 2020). “After COVID-19,
Ways India Can Pursue a Sustainable and Resilient
Recovery”. WRI.org