The second wave of the Coronavirus is shrinking the economy of India, dividing incomes, and wiping out all savings of several people, including migrant workers. India is the world’s third-largest economy, and it is still struggling to get out of the pothole of pandemic-induced recession.
The massive number of deaths and patients have pushed Indian healthcare to the edge of breaking point. States are grappling for beds, oxygen, food and are taking steps to impose lockdown and other restrictions. Despite worsening covid crisis and mounting pressure from health experts, Prime Minister Narendra Modi refuses to impose country lockdown, indicating concerns over the economic impact.
“Global experience also suggests that economic impacts from subsequent waves are smaller than from the first as economies learn to ‘operate with Covid’. The increased coverage of population under vaccination has been effective both in controlling the spread of Covid and boosting mobility,” the Finance Ministry said.
India’s gross domestic rate shrunk to 8% this march, and it is to go down even more. The current fiscal year has rising unemployment, and dwindling figures have dim the chances of growth. Unemployment has been the factor for taking Indians into poverty. Now the ban on travel in the nation’s biggest economy can contain the outbreak, but many Indians are conveying the brunt of the failing economy.
Reserve Bank Of India announced some measures to help people cope with their medical needs and other loans. RBI has announced relief measures for small businesses and 500 billion rupees ( $6.82bn) of liquidity for corporations that are making vaccines and other medical equipment.
“The second wave is far more intense than the first wave,” Ms. Sahay says. “However, the impact on the economy is muted until now relative to the national lock down of early 2020.”
According to the study conducted by Pew Research Center, it has shown that 75% of Indians have slipped into poverty during a pandemic. The second wave will crush the economy even more. The country could emerge as the fastest economy, but the government should take some precautionary steps before it is too late.