Economic Shock Under COVID-19 Lockdown
The Coronavirus-induced Lockdown has brought much of economic activity to a halt, as evident by CMIE report stating that 18.9 million salaried Indians have lost the jobs since April, with around 50 lakh jobs lost in July alone. The country’s GDP suffered the largest shock after contracting by 16.5% in April-June Quarter. With this, the virus is spreading with alarming speed in rural districts which have emerged as new hotspots, accounting for 54% COVID-19 cases between July-August. GoNews’ Editor-in-chief Pankaj Pachauri sums up the implications on Indian economy under COVID-19.
In the latest report, the State Bank of India, the country's largest bank, has estimated that the economy of the country could suffer a loss of Rs 38 lakh crore in the current financial year, which is 16.9 percent of India’s GDP. Due to this loss, the per capita income of every citizen of the country is estimated to be cut by about Rs 27,000.
The national average of per capita income in the country is 1.21 lakh but due to Coronavirus and lockdown, it is expected to decrease by 20%.