During the present times if we examine the current situation of India we are achieving new heights in terms of the number of people getting vaccinated but on the other hand, it’s still important to look into the fact that our country’s economic growth had a serious impact of Covid-19 and our economy is still at a recovering stage.
The pandemic has left the worst impacts not only in India but worldwide. There was a strict lockdown everywhere to prevent the spread of the disease, only stores that used to sell essential commodities were allowed to function in such cases automatically the demand for luxurious goods declined as no purchases for this kind of goods were made during the lockdown. The demand for luxurious goods decreased due to the reduction in buying capacity of the consumer. There was a complete shift from buying luxurious goods to buying only essential commodities.
This happened due to many people losing their jobs and having no means of income, and also there was no need for that particular product at that time. The consequences of COVID 19 almost had the worst impacts on each one of us. The unemployment rates increased during the first wave, and the second wave was no less than a disaster. As per the Centre for Monitoring Indian Economy 15 Lakh people lost their jobs in August 2021. The national unemployment rate has also increased to 8.32% in the same month.
People blamed the big companies that they should not lay off employees from the jobs, but we believe even they had no choice rather than doing this as they were also suffering from huge losses and paying off salaries are a fixed cost, how are they going to pay the fixed costs if they are not earning at all? Even if a person is at break-even he can pay off but in this situation, it was difficult.
The Indian stock market which only depends on the economy has also suffered a lot. If you are an investor or a trader you might go through apps and channels like CNBC, or Money Control or any other. The shares of infrastructure companies, motor companies, and insurance companies were having huge losses. The primary reason for this being the people were not in the condition of buying necessities, how are they going to have an insurance or buy a new house or buy any kind of luxurious goods.
Everything has a positive and negative impact, the stocks we mentioned might have suffered a huge loss but pharmaceutical companies like Cipla, Pfizer, Dr Lal Path Labs, Johnson etc all were either producing medicines for covid cure or were producing vaccines due to which they had a lot of profit in the last six quarters. At the time the country’s economy was collapsing there was a fear of inflation and the fear became an unwanted reality when crude oil prices were high and people were unable to afford the fuel.
In some places, the oil prices almost hit above 102 Rupee from 72 Rupee. People have started to use their savings to meet their basic demands, also the edible oil we get from imports to meet our country’s demand is one of the global factors that has contributed to the increase in the price of all commodities. There have been many sectors as well that were worst hit by the pandemic.
The lower income group
The low-income group includes labourers, or rickshaw pullers etc. Due to lockdown, they have suffered largely as they tend to work on daily wages which they did not receive in the lockdown due to unemployment, or they work in factories that have cut down production and did not required much labour to meet the demand.
The textile industry
The textile industry can also be included in the worst-hit sector as there was no such demand for formal outfits for party wear clothes as people were working from home and were wearing casual clothes to work. So the demand for new clothes reduced a lot, which can now be understood with the example that as soon as the lockdown was lifted almost all brand stores whether it is Zara, H&M or any other all of them had huge discounts on their products which was done to increase the sales, as the discount being something which motivates a consumer to buy a product.
The hotel industry
One of the industries which were about to seek its greatest peak in terms of sales was completely shut down due to restriction on travelling and after easing of restrictions they are presently providing incentives to prospective customers, like 20% off for vaccinated people and many such to boost sales and are in a way urging them to buy the services.
The education sector
In this we can to take into account stationers, uniform sellers or tuition teachers especially, the school van drivers. All of them contribute towards the education industry, schools were shut, there was no demand for pen and paper in online teaching, even demand for school uniforms was cut down. The cancellation of exams along with Covid-19 restrictions made a loss to private tuition teachers as parents avoided to send their children to offline tuition.
To conclude, each one of us contributes to economic growth in some or the other. If one person is cut down from the chain everyone suffers so it’s important to keep in mind that if a person needs to earn profit he needs to generate income from ten others so that everyone can earn and boost the economy. As the scars left by the pandemic are healing there lies hope for improved production, reduction in inflation, and a bounce back from the Indian economy.