Impact of covid19 on indian economy

India had also been witnessing a pre-pandemic slowdown.Even before the pandemic, since FY 2018-19, India's growth was falling, 8% in Q4 FY18 to 4.5% in Q2 FY20.In January 2020 itself, well before India's lockdown or reactions to the pandemic, the IMF reduced India’s GDP estimates for 2019 and also reduced the 2020 GDP forecast.^[ The 2016 demonetisation and GST enactment in 2017 led to severe back to back disruptions in the economy. On top of this there had been numerous banking crises such as the infranstructure financing and leasing services crisis and government scheme failures such as that of make in India There was also a significant "income crunch" for both rural and urban sectors in the year prior to the lockdown.

Globally in a poll by the 'Edelman Trust Barometer', out of the 13,200+ people polled, 67% agreed that "The government’s highest priority should be saving as many lives as possible even if it means the economy will recover more slowly"; that is, life should come before livelihood.For India, the poll showed a ratio of 64% to 36%, where 64% of the people agreed that saving as many lives as possible was a priority, and 36% agreed that saving jobs and restarting the economy was the priority.^[

In India the life versus livelihood debate also played out, with the government first announcing that life would be prioritized over livelihood, which later changed to an equal importance being given to life and livelihood. By mid-May the center was keen to resume economic activities, while the Chief Ministers had mixed reactions.^[

Prime Minister Modi announced the first 21 days of India's lockdown on 24 March. During this address to the nation he said, "Jaan hai toh jahaan hai" (transl. Only if there is life there will be livelihood). On 11 April, in a meeting with the Chief Minister's of India, the Prime Minister said "Our mantra earlier was jaan hai toh jahaan hai but now it is jaan bhi jahaan bhi (transl. Both, lives and livelihood matter equally). On 14 April, another address to the nation was made by Modi in which he extended the lockdown, with adjustments, to 3 May.In the Prime Minister's fifth meeting with the Chief Ministers on 11 May, the Prime Minister said that Indians must prepare for the post coronavirus pandemic world, just as the world changed after the world wars During the meeting Modi said "Jan se lekar jag tak" (transl. From an individual to the whole of humanity) would be the new principle and way of life.On 12 May, the Prime Minister addressed the nation saying that the coronavirus pandemic was an opportunity for India to increase self-reliance. He proposed the atmanirbhar bharat Abhiyan (Self-reliant India Mission) economic package.

in India up to 53% of businesses have specified a certain amount of impact of shutdowns caused due to COVID-19 on operations, as per a ficci survey in March.By 24 April the unemployment rate had increased nearly 19% within a month, reaching 26% unemployment across India, according to the 'Centre for Monitoring Indian Economy'. Around 140,000,000 (14 crores) Indians lost employment during the lockdown. More than 45% households across the nation reported an income drop as compared to the previous year.Various business such as hotels and airlines cut salaries and laid off employees. Revenue of transport companies such as ola cabs went down nearly 95% in March-April resulting in 1400 layoffs. It was estimated that the loss to the tourism industry will be 15000cr (US$2.1 billion) for March and April alone. CIL and FAITH estimate that a huge chunk of the workforce involved with tourism in the country faces unemployment. Live events industry saw an estimated loss of 3000cr (US$420 million).