Clueless with Coronavirus
The Indian economy was on a deterioration path even
before the pandemic. It is now stuck in a demand drought
that is not decreasing any time soon.
The Coronavirus pandemic is playing havoc with the world economies in a way that has never happened before. Developing countries are most affected and India, one of the biggest markets of about 1.35 billion people, is at the verge of collapse in terms of its pathetic economic situation. There are two problems in India these days that go in parallel - one is the BJP’s incompetent and extremist government and the other is the pandemic. It is a bitter reality but it is true that the Modi-led government is completely clueless on how to manage the economy in the face of a coronavirus-induced recession.
Due to the lockdown, India is facing a problem of falling investment. However, the Indian economy was in one of its worst phases even before the coronavirus outbreak, with growth in the gross domestic product (GDP) dwindling to an 11-year low of 4.2 per cent in 2019-2020. The economy grew by 3.1 per cent in the January-March quarter of 2019-2020, against 5.7 per cent at the same time a year ago, the slowest growth in at least eight years. This vividly depicts the bad governance and management of the BJP-led India.
The Modi government says that the Covid-19 lockdown has impacted data flow and, with constitutional reporting timelines extended, the estimates are likely to undergo revision. The Gross Value Added numbers for the first three quarters have been reviewed meaningfully downwards and show that the economic disorder was deep and widespread even before the novel coronavirus emerged. Four of the eight industry sectors that together comprise the Gross Value Added are now revealed to be in far worse shape than was reported earlier.