Due to a series of national lockdowns in India, reduced to the economic engagement of the people died to the unprecedented pandemic outbreak, and now due to some relaxation of the unlocking phase, the economic activities back on track. There is seen a slower contraction in the economy. Venturing into the treacherous uncharted territory for 8 months where the COVID 19 contagion has persuaded the economic functions to a standstill due to the countermeasure incorporate by the government at the helm. However, it is evident that such a prohibition is feasible solely for a transient period due to the adverse impact on the nation's wealth Treasury.
In this very bad year, our economy has gone done. For the last four to five months our economy has gone worst and after this long period, we heard a positive point about our economy. In the time when everything was stopped then our economy has gone 37% down and now 15% is down. It is the most positive sign.
Areas of bottom out after a deeply negative impact: -
The inter and the intra stage movement of persons and goods due to lifting of restrictions have revived both vehicular movement and demand for auto- fuels.
The personal mode of mobility by the people lead to growth in petrol product consumption by 11%
Electricity Sector: - plummeted due to depressed requisition as the majority of industrial activities presently are persistently inactive. Electricity output too fell at a slower 11% pace than the preceding month's 14.8% slump.
Fertilizer Sectors - In this year monsoon in more than previous and thus the production of Kharif crop is more than previously it also plays a vital role in improving the condition of the economy, for increasing GDP through which our condition will be increased. And the Government will be able to provide help to many states. Portrayed promising expression of flourishing as a 14% rise in Kharif crop sown in contract to former year. Further aided by the copious monsoon in Aug, Sep as Forecasted by IMD. Fertilizer saw the expansion ease to 4.2% from 7.5% in May, the only industry to post growth for the second straight month.
Refinery sector- Register elevation due to surge in requirement factor pertaining to spur in public mobility and goods motion via inter and intra States routed
Areas of shortfall
Cement sector- Deprivation due to the absence of requirement and stalled infrastructure prospects. Cement output fell 6.9%, a sharp deceleration in the pace of decile from 21.4 % contraction of May.
A shortfall in GST collection due to slow employment.
These pandemic outbreak worlds are extraordinarily difficult times for our nation and the world. The policymakers should frame certain sets of policies to overcome the burden on the economy and in favor of its revival. There is also needed to restore confidence in the financial system which acts as a Vital lubricant for the economy. People must feel confident about their lives and livelihoods by taking all precautionary measures and through direct cash assistance and other welfare programs. Increasing confidence and sentiments of all in our society using the economic tools of fiscal and monetary policies would help to revive the economy in India.
Official Writer: Sweta Kumari
Note: All the Numerical Data are taken from the Hindu.