IMPACT OF COVID-19 ON THE INDIAN ECONOMY

Abstract

The pandemic caused by COVID-19 has had a substantial influence on the Indian economy, generating disruptions across a variety of industries and affecting the dynamics of the economy. The purpose of this article is to investigate the myriad ways in which the pandemic has affected India's economy. These affects include the decrease of the gross domestic product (GDP), employment, the fiscal deficit, and the interventions of the government. A sudden halt in economic operations was brought about as a result of the lockdown measures that were adopted in order to prevent the virus from spreading further. This resulted to a reduction in the growth of the GDP. Small and medium-sized businesses (SMEs), workers in the informal sector, and those earning daily wages were the ones that suffered the most from the economic slump. They were forced to deal with the loss of jobs and the uncertainty of their income. The government's response consisted of fiscal stimulus packages and policy interventions that were designed to mitigate the harmful impacts of the epidemic. These interventions included relief measures for vulnerable people as well as assistance for enterprises. On the other hand, obstacles to economic recovery continue to be obstacles such as interruptions in supply chains, decreased consumer demand, and financial hardship on industries such as tourism and hospitality. In this study, we investigate the various options for creating resilience and sustainable growth in the post-pandemic age, as well as the short-term and long-term repercussions that COVID-19 will have on the Indian economy.