ECONOMICIMPACT OF COVID – 19 ON INDIAN ECONOMY

Abstract

The outbreak of corona virus across nations, which is speculated to be originated in china has cease economic activities globally. Restriction on transport and communication among countries further aggravated in slowing down the economic activities. Production is shrinking mainly in those industries which dependent upon inputs from china. Impact of this virus differs from nation to nation. Pre- corona, India’s GDP was growing at very low rate of 4.5% and it is expected to be as low as 3% post- corona. Fiscal deficit is deteriorating, which is expected to be increase from 3.8% to 4.6%. At the same time public debt is also deteriorating. Indian economy is expected to face recession which is identified by negative growth rate in two successive quarters. Financial help from international institution is not even an option seeing global scenario. Active and effective monetary and fiscal policy and its implementation by government will help the economy to counter the pandemic. This paper tries to demonstrate the prospects and possible impact of the virus on the Indian economy.