India’s economy was hit by the coronavirus lockdown. These charts show how
Coronavirus lockdown badly hit Indian’s economy, says the charts below
• Since January more than 400,000 reported, India is one of the most affected countries.
• To minimize its effect, the Indian government implemented a national lockdown in late-March, which continued until May.
In recent weeks, as the country emerged from a strict nationwide lockdown, India became one of the world’s worst-hit countries in the coronavirus pandemic with the recent rise in cases reported.
From the cases reported, the number of recovered people is higher than the affected ones, and relative to its population, the percentage of infected individuals is still low though it has reported 400,000 cases since January.
To mitigate the economic fallout, PM Modi’s government had announced a $266 billion support package containing both fiscal and monetary measures, which are worth around 10% of India’s GDP.
India’s industrial production dropped in April due to the lockdown as most of the operations were not in operation. The index contracted by 55.5% with the same period the year earlier.
Business activity and new orders
The business activities stopped due to lockdown which affected the service industry. The business activity index came in at 5.4 far below an industry forecast of around 40. Readings below 50 indicate contraction
A survey was conducted by RBI that showed how consumer confidence has dropped. Consumers appeared to be pessimistic about the current situation and future expectations.
“Consumer perception on the general economic situation, employment scenario and household income plunged deeper into contraction zone,” the RBI said in its release. “While expectation the general economic situation and employment scenario for the year ahead were also pessimistic.”
Millions of people lost their job due to the lockdown and the unemployment rate in both rural and urban areas rose sharply in late-March.
On a national level, India publishes a periodic labor force survey over 12-month periods. In the latest figures released for the fiscal year 2018-2019, data showed the unemployment rate fell to 5.8% from a more than four-decade high the previous year, media reports said.