Every policy has some pros and cons. The government initiative for lockdown is for our safety and security from the Novel Coronavirus COVID-19. But, its impact on the economy is not positive. For knowing more about this topic, kindly read the paragraphs mentioned below.
Short and Long Paragraphs on Effects of Lockdown on Indian Economy
Paragraph 1 – 100 Words
A global pandemic can affect our society in various ways. The economic, environmental, and various social effects are can be seen in the people living in a particular region. The Indian government has declared the 21 days lockdown as a preventive measure against COVID-19.
This lockdown is the best option for lowering down the spread of this global pandemic. However, lockdown is giving challenges to the Indian Economy as the economic activities between states are completely standstill. In an underdeveloped country like India where unemployment and Industrial Output is a big issue, here the supply side of the economy will also be lockdown.
Paragraph 2 – 120 Words
21 Days lockdown is a preventive measure against the COVID-19. The complete lockdown of all the economic activities for the next three weeks is a newly created economic crisis for all industries.
The tourism and trade industries are severely affected by the lockdown. The medium enterprises, daily wagers, micro, and small scale industries are facing this economic crisis. The GDP rate is estimated to fall in the first two quarters.
Sadly, the Indian economic condition will face a dropout. Poverty will rise due to sudden economic fall; people will die due to hunger. The economic impact of lockdown can only be recovered if the adequate steps will be taken for uplifting the economic fall. The cash circulation and transfers can be a measure of preventing poverty.
Paragraph 3 – 150 Words
21 Days lockdown is a big challenge for the economic condition of our nation. The main GDP contributors to our Economy like Private Consumption, Investment, and External Trade will be affected. The quarterly estimation of Gross Domestic Product for the third quarter of 2019-21 may be in the range of 5.3 to 5.7 percent.
A quick withdrawal in the global economy including India: After resuming the work and other sectors normalcy, the economic recovery is expected for India in the second half of 2020. India’s Growth Rate for 2020-21 will be in the range of 5.3 to 5.7 percentages.
Global Recession and India’s situation: In such a scenario, India’s growth will be lower than the 4-4.5 percent.
The rapid increase of the COVID-19 in India may increase the lockdown period: In such a situation, the Indian economy will face double loss due to the domestic and global demand destruction, in such case the growth may fall below 3 percentages.
Paragraph 4 – 200 Words
The economic condition of India is predicted to fall down during 21 days lockdown period. The sudden seizing up of all the industries excepting essential goods and services is giving a negative impact on our Indian Economy. The reason is simple if the economic condition of a nation will observe a sudden fall in all sectors, the Banks will spike in NPA numbers again. The small sectors and rural businesses will become to end. The Liquidity of the banking sector will be observed. The secondary capital market will also be affected.
The job losses and the loss of potential jobs are higher. The travel and tourism businesses will suffer this loss on a large basis. The disruption in the demand and supply chain of the economy can cause adverse effects on the Indian economy.
The durable and semi-durable goods account for about 11% of consumption which is likely to be impacted. Private sectors like Cinemas, Restaurants, and other similar sectors are likely to face great loss. The Service sectors will face the demand destruction caused by the economic crisis. The purchase of durable goods is likely to be canceled for some time, this is a serious issue for these sectors.
The Lockdown is for social safety and security, but sadly it’s not favorable for the economy of India. Every policy has some pros and cons, now the public is looking towards the government relief for coping up and recovering this unforecastable economic loss.
Paragraph 5 – 250 Words
Indian Economy is signifying a nationwide crisis due to the lockdown. The government’s initiative of the 21 days lockdown is for lowering the chances of community spread of COVID-19.
The Demand-Side Impact of the lockdown is mostly on consumption that plays an important role in the Indian economy. The sudden stop of urban activities can give a sudden fall in non-essential goods. The domestic supply chain will be disrupted and it will severely affect the essential commodities. The wage/salaried employees will predict to face uncertainty in their income opportunities.
What are the Potential Impacts of Lockdown on Various Sectors?
Fabric & Textile Industries: Manufacturing, Supply, and imports will be affected. The dependency on the Chinese market for some fabrics will give arises in the price of fabrics in the domestic retail market.
Auto Mobile Industries: The passenger vehicle, commercial vehicles, and all other automobile industries will face loss due to the non-availability of auto components and non-essential goods.
Tourism & Aviation: This industry will face higher than the expected loss as the fear of pandemic will shut down the chances of tourism for more than a year. The World Travel and Tourism sector estimate the crisis.
Real Estates & Construction Sites Business: Due to lower demand and the barred construction services will face higher losses.
E-Commerce Industries: E-Commerce Industries will face a sudden economic crisis by the pressure of demands and the disrupted supply chain of the deliveries of the products.
Similarly, almost every sector will exposed to face economic crisis. Only the initiative funding by government and state government will recoup the upcoming great economic crisis.