Pre and Post Covid-19: The Impact, Challenges and Growth Strategies for Indian Economy

Abstract

The COVID-19 pandemic has probably given the biggest blow to the world economy after the great depression of 1930s. Around 60 per cent of the world population is either under severe or partial lockdown without having medical solution to the coronavirus and economic activity across countries has either stalled or significantly decelerated taking away millions of livelihoods. As a result of the pandemic, the global economy is projected to contract sharply by −4.9 per cent in 2020, much worse than during the 2008–2009 financial crisis (International Monetary Fund [IMF], 2020). India being densely populated country with inadequate medical facilities was left with no option but to follow the policy of lockdown. World economy is heading for a recession and India is no exception. The current pandemic is working its way through a highly globalized world with interconnected production networks and financial markets. The fall out of the COVID-19 on Indian economy is going to be huge because of its own lockdown, which was necessary to contain the spread of coronavirus, and also because of India’s integration with the rest of the world. This research paper explores the effects of the pandemic on various sectors of Indian economy and challenges to be faced in post covid-19 and the measures taken by the government in response to pandemic-related challenges.