SECOND WAVE CAN ENFEEBLE INDIAN ECONOMY
It has been more than one and half year since the COVID-19 pandemic made the way for the great core of human progress and made us to understand the power of mother nature. To understand impact of the second wave on Indian economy, let’s remember the first wave and also its impact on the Indian economy. The first wave of covid-19 gave us the phrase where the nation went into lockdown for a long period with the less numbers of peak cases. But the lockdown continued. After reporting the very first case in late January 2020 in the state of Kerala, India introduced rigorous effect of coronavirus (COVID-19). The following weeks saw a quick progression of covid leading to a suspension of all travel in and out of the country by March 22 that year. While infections proceed to increase during this period, We were now quarantined to our homes to lower the spread of the virus. Economists slit the GDP rates for the anticipatable future due to the crystal clear impact of the lockdown. Unsurprisingly, the most touched industries i.e. services and manufacturing, precisely travel & tourism, financial services, with sinking rates of up to 23% between April and June 2020. In the direction of the end of 2020, however, India saw some appearance of healing of certain sectors. The pandemic came with inconstancy and hint on all aspects of business across the world. For small businesses, however, it depended on how long they could ride out the storm. And this pandemic changed scenario and the daily lifestyles drastically. Economic activity began to take a hit again in March 2021, and it resulted the country to face the second wave of the pandemic. On May 31, Government of India announced the facts for GDP for the financial year 2020-21, GDP shrink by 7.3%. It can be considered as the most severe contraction from the time of independence till now. As the outcome, GDP forecasts were envisioned to fall, lays losses at over 38 billion U.S. dollars if lockdown resume till June 2021.
IMPACT OF SECOND WAVE SECTOR WISE
Manufacturing was the sector which underwent through the first as well as the second wave. To lower down the spread of coronavirus, many manufacturing sectors went for working at lesser capacity or made them to shut down completely. Manufacturing sector with non-essential facilities was also tremble for long time and with more strict restrictions. The fear of the continuing of the lockdown made migration back to their villages.
Strict rules and long period of lockdown has been seen in many rural parts of the nation. The Agricultural Produce Market Committee (APMC) Mandis seen to be closed for all the functions or have taken steps according to their situation. Specially, Mandis in Gujarat, Rajasthan and Maharashtra were seen to be closed during peak of harvesting.
From the last 20 years services sector has been the backbone of the Indian economy contributing to more than half of the GDP. The first wave of covid-19 made a straight line required for an organization to development of infrastructure and processes for remote working. For the employees, first lockdown made them to work within the four wall which took time for them to get to work from home and be productive. But the second wave disturbed this pattern again.