The outbreak of COVID-19 became a challenge for the Indian economy due to the potential drop in GDP. However, the second wave was much more severe when compared to the first which made a downside risk to the economic activity due to National level lockdown.  Several segments like manufacturing, small scale, Information technology, small unions are lost in the pandemic. The supply chain management with the global economy along with the procurement was drastically affected.

The immensity of the impact is directly proportional to the health crisis and duration of the lockdown. In this the analysis had been done on the affected segments and the Government concentrations of lockdown to increase the capital expenditure and to implement the structured reforms as well.


There are several sectors which are impacted by the COVID-19 and the chances of their revival are not in the near future. Their profitability is continuously decreasing and fixed cost is intact. Like media and entertainment industry; all multiplexes are closed and people do not want to visit the multiplexes in the near future. Many organizations have taken loans from commercial banks and other financial institutions. They have to pay interest on the loan despite of poor financial position.

Increase in the income provisions for the supportive measures of the rural and urban population The productive way is to increase recovery rate by emergency approval of the foreign vaccines when the demand for the vaccines increases in India. The Government and the RBI need to keep interest rate low despite borrowing on policy basis. The Success of the borrowing program depends on RBI support, by providing indirect liquidity which is really big as this is pandemic. However, liquidity expansions have their own limits.


The sectors like construction, trade and transport, hotel, mining, quarrying sectors and some other services are having a strong base effect on the challenging recovery part. These kind of hard situation are monitored clearly and the demand for those kind of sectors are faltering due to the crisis which would become more aggressive and would be the most unavoidable once for the upcoming years. The country’s long term goal is affected badly and the performance needed to withhold by hard efforts for the further improved output.

Post a Comment