Dear MEL Topic Readers,
The worst is yet to come for India's slowing
economy
India reported that its Gross Domestic
Production, GDP, grew 3.1% in the Jan-Mar quarter this year. It was the weakest
quarter in eight years, at least. However, this reflects only a few days of the
nationwide lockdown to cope with the Covid-19 pandemic.
The initial nationwide lockdown for India’s
1.3 billion people came into effect on March 25. Only essential activities are
allowed in containment zones. The movement of passenger vehicles and buses is
permitted only in non-containment zones. Air travels, either domestic or
international, remain prohibited except for authorized purposes. People aren’t
allowed to go out between 7:00 pm and 7:00 am except for essential purposes.
All schools, theaters, malls, places of worship remain closed. No business, no
jobs. Thousands of migrant workers left cities to go homes in their rural villages.
People’s movement especially by railways, tourism, auto manufacturing, and
Bollywood have all been badly hit by the lockdown for the last two months and at
least for the next few weeks. So, you can easily predict show sharp economic shrink
in the Apr-Jun quarter. When will the Indian government reverse the gear? How long will
it take for Asia’s third-largest economy to show a recovery?
Enjoy reading the article and learn about the
impacts on India’s economy.
No comments:
Post a Comment