EFFECT OF COVID 19 ON INDIAN ECONOMIC

EFFECT OF COVID 19 ON INDIAN ECONOMIC

Farha Tabassum

INTRODUCTION

The outbreak of the COVID-19 pandemic has had a profound effect on the Indian economy. The country has seen a nationwide lockdown, which has led to a significant decline in economic activities, leading to a contraction in GDP growth and a surge in unemployment rates. The pandemic has affected almost all sectors of the economy, including manufacturing, services, agriculture, and others.

One of the most significant impacts of the pandemic on the Indian economy has been on the manufacturing sector. Due to the lockdown, many factories and industries were forced to shut down temporarily, which led to a significant decline in manufacturing output. According to a report by the Centre for Monitoring Indian Economy (CMIE), around 120 million people lost their jobs in April 2020, with most of them belonging to the manufacturing and services sectors.

The services sector, which contributes significantly to the Indian economy, has also been severely impacted by the pandemic. The hospitality industry, which includes hotels, restaurants, and tourism, has been hit particularly hard. The government's decision to ban international travel and restrict domestic travel has resulted in a sharp decline in the number of tourists and a significant loss of revenue for the industry.