I would like to share this interesting article which explains regards effects of COVID on Indian economy.
As we all know that outbreak of COVID-19 brought social and economic life to a standstill. While this pandemic is consistently growing and showing little signs of containment, its adverse impact on economic process of the country is very serious. The UN warned that the coronavirus pandemic is predicted to possess a big adverse impact on global economy, and most importantly, GDP growth of India for this economy is projected to say no to 4.8 percent. There is great impact on aviation, tourism, retail, capital markets, MSME's and oil. International and internal mobility is restricted, therefore the revenues generated by travel industry which contributes 9.2% of the GDP, took a serious toll on GDP rate of growth. Aviation revenues came down by USD 1.56 billion. Oil has plummeted to low of $22 per barrel in March, FPI's have withdrawn huge amounts from India, about USD 571.4 million. While the other oil prices shrunk the present account deficit, reverse capital flows expanded it. Rupee is continuously depreciating. MSME's undergone asevere cash crunch. The crisis witnessed a horrifying mass exodus of such floating population of migrants on foot, admist countrywide lockdown. Their worries primarily were loss of job, daily ration, and absence of a social security net. India must rethink on development paradigm and make it more inclusive. COVID 19 has also provided some unique oppurtunities to India. There is a chance to participate in global supply chains, multinationals are losing trust in China. To 'Make in India', some reforms are needed, labour reforms being one among them.