Impact of COVID-19 on Various Sectors of the Economy

Abstract

COVID-19 has wreaked havoc on the economy in a variety of ways. The effect of the novel coronavirus on various aspects of the Indian economy and the economies of South Asian countries is investigated in this research paper. This study's main goals are as follows:1. To understand impact of COVID-19 on overall Indian Economy and South Asian countries. 2. To know impact of COVID-19 on different sectors and 3. To find out the GDP growth rate of the economy. India's economy is the world's fifth highest, with a gross domestic product (GDP) of $2.94 trillion, surpassing the United Kingdom and France to take fifth place in 2019. India's GDP is also $10.51 trillion in purchasing power parity (PPP), surpassing Japan and Germany and placing India as the world's third largest contributor to GDP. According to data released by the International Monetary Fund, India's GDP growth premium over emerging economies (EMs) is expected to drop to a seven-year low of 1.1 percent in the current fiscal year 2019-20, owing to poor investment, credit problems, currency volatility, slower demand growth, and increasing inflation (IMF). The study depicts the actual GDP growth rate when taking into account market inflated final goods and services rates. According to the ADB's COVID-19 pandemic outlook, inflation in the sub-region will be moderate, averaging 4.1 percent in 2020, as food inflation in India eases due to improved agriculture. Because of this minor inflationary rate in South Asia, the pandemic would cause the real GDP growth rate in all countries to slow down. With subsidies and price caps on basic goods, the Maldives' remarkably low inflation will remain the same, despite an expected deterioration in the recommended requirements. Pakistan, on the other hand, would experience double-digit inflation due to rising food prices. Annual inflation in South Asian countries increased significantly from 3.3 percent in 2019 to 2.4 percent in 2020, with real GDP rising by 6.6 percent. According to Central Statistics, India's nominal GDP reached 728.6 USD billion in December 2019, and its GDP deflator (implicit price deflator) increased by 2.9 percent. In March 2019, India's GDP per capita was 2,044.6 USD. Steps taken to halt its spread, such as state lockdowns, halted economic activity and could have a significant effect on both consumption and investment.