Due to the Covid-19 pandemic, there is a major global economic crisis on the way and these negative growth rates are the vital indications of it. Almost, every giant economy is facing a huge drop in their GDP and this is a reason that they eagerly want to open their market as soon as possible even when the number of cases is still surging up. Coming to India, it has witnessed a 23.9% of negative growth rate which is the highest among recent decades.
However, the government cannot be blamed for this loss because it was not in their hand to maintain a positive growth rate during one of the biggest lockdowns in the world but it is the complete responsibility of the government to take appropriate actions so that the Indian market can bloom as before.
According to some financial agencies, India was underperforming even when the growth rate was above 5% but now as it is -23.9% we cannot feel any positive vibes and the worst part may come ahead if we do not take any measures to overcome this situation. Since 2018-19, we have been facing a recession like trends in the auto sector but due to nationwide lockdown, many other industries are on the same way.
This may clearly affect the job market and many people will have to sit home. In 2019, the national unemployment rate was 5.36% which may get doubled as many small scale business firms and startups are about to close and members associated with them will be looking for new job opportunities in the market.
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Moving further, it is one of the biggest challenges for the Modi government to opt for some practical and ground-level solutions which can revive the Indian economy and prevent it from heading toward the recession. Otherwise, it won’t take much time to get situations out of control and it will be an unwanted failure of the government.
However, a significant amount worth INR 21 lakh crore ($282 billion) was announced by the government in May to support the economy but the main focus was to provide credits to the businesses rather than providing direct assistance like waiving off the taxes. Undoubtedly, the nation is going through a tough phase but a positive change is expected to come soon when this lockdown will end completely.