This document summarizes the impact of COVID-19 on the Indian economy and its key sectors. It discusses how the pandemic and lockdown have disrupted economic activities and sectors like agriculture, industry, and services. The primary sector faces issues like lack of labor, low prices, and supply chain disruptions. The secondary sector is impacted by falling demand, profits, and jobs. The services sector sees declines in travel, exports, and new orders. Unemployment increased initially but has reduced. Future jobs may emerge in health, education, e-commerce and agriculture. The government has undertaken liquidity and relief measures for businesses. Overall, a full recovery will take time as COVID changes how the world works.
2. Dr. R.H. Pavithra
Senior Assistant Professor
Department of Economics
Karnataka state open University
Muktha gangotri Mysore,
570006
STATE LEVEL WEBINAR ORGANISED BY
JSS COLLEGE, OOTY ROAD, MYSURU
Topic : COVID-19 AND INDIAN
ECONOMY ISSUES AND
CHALLENGES
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3. CONTENTCOVID-19ANDINDIANECONOMY:
ISSUESANDCHALLENGES
INTRODUCTION
COVID-19 AND INDIAN ECONOMY MENAING
COVID-19 AND INDIAN ECONOMY
COVID-19 IMPACT ON INDIAN ECONOMY
COVID-19 IMPACT ON INDIAN ECONOMY SECTORS
SECTOR WISE CONTRIBUTION OF GDP
IMPACT OF COVID-19 ON PRIMARY SECTOR IN INDIA
ISSUES AND CHALLENGES FACED BY PRIMARY SECTOR
IMPACT OF COVID-19 ON SECONDARY SECTOR IN INDIA
ISSUES AND CHALLENGES FACED BY SECONDARY SECTOR
COVID-19 IMPACT ON INDIA'S SERVICE SECTOR
ISSUES AND CHALLENGES FACED BY SERVICE SECTOR
EMPLOYMENT GENERATION AT PRESENT.
FUTURE EMPLOYMENT GENERATION
MEASURES UNDERTAKEN AT PRESENT
CONCLUSION
4. Coronavirus Disease
2019 Is Unprecedented Global Public Health
Concern. The Government Of India Imposed A
Lockdown In A Nation And Now We Are In At
The Stage Of Unlock (2.0).
In this brief review an attempt has been made
to discuss the covid-19 and Indian economy
issues and challenges.
INTRODUCTION
5. COVID-19 AND INDIAN ECONOMY
Covid-19: Covid-19 is an infection disease
caused by a newly discovered coronavirus.
Indian Economy: the economy of India is
characterized as developing market economy. It
is the world's fifth largest economy by nominal
GDP and the third largest by purchasing power
parity (PPP).
MEANING
According to the IMF on a per capita income basis india
rank 130 9th by GDP (nominal) and 100 18th by GDP
(PPP) in 2018.
6. The economic impact of the 2020 coronavirus
pandemic in India has been largely disruptive.
India's growth in the fourth quarter of the
fiscal year 2020 went down to 3.1 % according
to the ministry of statistics.
COVID-19 AND INDIAN ECONOMY
7. COVID-19 IMPACT ON INDIAN
ECONOMY
With an increasing number of coronavirus
cases, the government has implement
lockdown in nation.
India is one of the most affected countries
from the coronavirus pandemic with more
than 12 lakhs reported cases since January.
The pandemic outbreak has several
impacted the Economic activities.
8. There is a job losses of 40 million people (MRD
report) April 07, 2020 Economics times
In the country highest job losses sectors are.
*Aviation
*Automobile
*Travel and tourism
*Food
*Entertainment
*Manufacturing
Continue…
9. World bank suggest that the covid-19 will push
12 million people in India into extreme poverty.
Lockdown 2.0 has made unemployment rate to
touch to the tune of 26%.
Continue…
Covid-19 Lockdown: Decline In Farmer Income.
10. In May India's unemployment rate is 23.5% it
fell down to 11% in June.
January 26 6.6%
February 23 7.4%
March 29 8.15%
April 26 21.1%
May 17 24%
June 11%
Source: Centre For Monitoring Indian Economy
11. In this scenario,
Predicting that India would go into recession
affecting that an organized sector and semi
skilled job holders losing their employment.
All the 3 major sectors of the economy are
facing various issues and challenges.
Continue…
12. COVID-19 IMPACT ON INDIAN
ECONOMIC SECTORS
INDIAN
ECONOMY
SECTORS
Service
sector
Primary
sector
Secondary
sector
Indian economy is
classified into
three major
sectors
13. SECTOR WISE CONTRIBUTION OF GDP
Agriculture Industry Service
2015-16
2nd Re
17.70% 29.80% 52.50%
2016-17
1st Re
17.90% 29.30% 52.80%
2017-18
PE
17.10% 29% 53.90%
2018-19 16.10% 29.60% 54.30%
SECTORS
YEAR
14. IMPACT OF COVID-19 ON PRIMARY
SECTOR IN INDIA
Primary sector is also known as agricultural
sector and is the backbone of any economy. It
is worth to mention that the agricultural sector
provides jobs to around 53% population of
India, and currently it is contributing around
16.1 % of GDP ( 2018-2019 ).
With the ongoing pandemic livelihoods of all
the farmers and the people who are including
in this sector are at high risk.
15. ISSUES AND CHALLENGES FACED BY
PRIMARY SECTOR
ChallengesIssues
Farmers store their
crops as they were
unable to sell them.
Farmers experienced
heavy loss, due to lack
of labourers, storage
and transportation
facilities.
Various restrictions.
Labour
Safety measures.
Monitor
Storage and marketing
16. ISSUES AND CHALLENGES FACED BY
PRIMARY SECTOR
ChallengesIssues
Farmers face huge
harvesting cost compared
to last seasons mainly
becauseofbecauseoflack
of labourers and high cost of
machinery.
As agricultural produce
are perishable has
resulted in creating a gap
insupplychain.
lack of laborers during
theharvestofrabicrop.
17. ISSUES AND CHALLENGES FACED BY
PRIMARY SECTOR
ChallengesIssues
Market prices was too
low so farmers could
not effort to harvest.
Damage the supply
chain.
The sale of dairy
products fish, poultry
etc has also been hit
during the lock down
period.
18. ISSUES AND CHALLENGES FACED BY
PRIMARY SECTOR
Issues
Restrictions on sale.
Cold storage issues
Loss of losses for farmers.
Fertile nature of the land is no more available.
19. IMPACT OF COVID-19 ON SECONDARY SECTOR
IN INDIA
Secondary sector is also known as industry
sector of economy this sector includes mining,
quarrying, manufacturing, gas, electricity,
construction, and water supply.
Currently it is contributing around 29.6 % of
Indian GDP (2018-19)
Secondary sector face challenges on account of
lack of demand global recession and falling
income levels, businesses
20. ISSUES AND CHALLENGES FACED BY
SECONDARY SECTOR
Issues
Sales down.
Challenges
Hitting the profit and
profitability.
Employee losses jobs.
Supply chain disruptions.
Transportation problem
More and more
employee stop coming
intowork.
Manufacturing in safe
environment.
Many companies
stop business.
Huge Healthcare cost.
21. ISSUES AND CHALLENGES FACED BY
SECONDARY SECTOR
Issues Challenges
Limited movement of
people.
Organizational
challenges.
People start
postponing non
essential purchases.
22. COVID-19 IMPACT ON INDIA'S
SERVICE SECTOR
Service sector is also known as territory sector,
it includes financial, real estate and
professional services, public administration,
defense and other services, trade, hotels,
transports communication And services related
to broadcasting.
Currently the sector is backbone of Indian
economy and contributing around 54.3 % of
Indian GDP in 2018-19.
23. India's IT Services Firm's Declared is
expected to see revenue drop in First
Quarter Result On July 19th
TATA CONSULTANCY SERVICE 6%
INFOSYS BY 5%
HCL TECHNOLOGIES 8%
TECH MAHINDRA 9%
WIPRO 7.5%
Tcs (tata consultancy service) is expected to see revenue drop by 6%,
Infosys by 5%,
Hcl technologies 8%,
Tech mahindra by 9%,
And wipro by 7.5%
24. India services according to prime ministers of
India2019
53.50% 52.50%
48.70% 49.20%
52.70% 53.30% 55.50% 56.30%
49.30%
5.40%
12.60%
33.70%
India services
Percentage
Source: treadingeconomics.com
25. ISSUES AND CHALLENGES FACED BY
SERVICE SECTOR
Issues Challenges
Weakness in demand
conditions.
Clients closing their
business.
Decline in new orders.
Lower requirements,
Restrictions related
to travel.
Companies reported
poor staff availability.
Employment across
the Indian service
sector fell,
26. ISSUES AND CHALLENGES FACED BY
SERVICE SECTOR
Issues Challenges
Reduction in running
costsduetoloweractivity.
Domestic and foreign
demand continued to
decline.
Exportssalescollapsed
duetotravelrestriction.
Environment
characterized.
Lack of quality jobs.
Creating jobs.
27. Industries servicing people during covid-19
have been doing good during this time and
would likely see and rise in the number of
jobs such as.
EMPLOYMENT GENERATION AT
PRESENT.
Health care
Pharmaceutical
E-commerce
IT services
Essential retail
28. FUTURE EMPLOYMENT GENERATION
The global recession induced by covid-19, will
fundamentally change the way. Humanity
works and socializes for year to come.
The covid-19 crisis will be catalyst to
unprecedented changes in every industry and
the future may yet hold surprises.
29. Future employment jobs such as.
Virtual education.
Work from home.
Health care.
E commerce.
Retail industry.
Self employment.
Employees in agricultural sector.
Robots may replace humans.
More employment in smaller town.
New types of service at home jobs.
30. Liquidity measure.
Relief for MSMEs.
Relief for NBFCs.
Relief for power utilities.
Regulatory measures And,
RBI announced a slew of measures in order
to provide relief for the ongoing coronavirus
outbreak in India.
Solving industries challenges with
technology.
MEASURES UNDERTAKEN AT PRESENT
31. CONCLUSION
OVERALL it would take longer time for the
recovery. Things will never be the same
again. Covid-19 will change the way the
world works.