It all started with Wuhan, a city in China, where initially it was considered as a pneumonia disease in 2019, December but as it spread throughout the world in Feb 2020 it was called as COVID-19 by WHO. They are medium-sized positive strained RNA viruses of which length is 27-32 kb. It spread via direct contact with infected secretions, it is similar as rhinoviruses in a study of healthy adults, it was found that it spread more frequently in those with pneumonia (13%) rate than in adults (4%) it was declared as a pandemic on 11 March,2020 by WHO. Earlier, in1918, more than 50 million were died by influenza pandemic and coronavirus is increasing day by day is more than in 123 countries. It was started in China but now in Italy has more death ratio than anywhere else .it circulate through bats in China’s live animal market.
India, they expect growth to come down to 5.3%, from the previous estimate of 5.7%. India’s exposure to China, according to Erken, Hayat and Kanji, is limited as compared to many other Asian economies. The largest impact is likely to be on the currency markets: the Indian rupee, which has depreciated significantly due to the high risk amongst investors globally (raising the demand of US $ vis-a-vis all emerging market currencies).
Why a national agency like NHFC might help?
A nationalised corporation like the NHFC can function with more discretionary power at hand, and have the flexibility to also raise funds from both public and sources in making sure that health services are available where needed.
To further minimise the recessionary growth picture-surfacing from the economic fallout of COVID-19’s trilateral shocks, some targeted policy interventions-if coordinated in consultation with institutions like the IMF and World Bank can help.
The impact of the coronavirus (COVID-19) pandemic had not only brought the global economy to a standstill but set the clock backwards on the developmental progress of several nations. While the rate of infection in India did not appear to be as high as in other countries, precautionary measures adopted dealt a severe blow to the country’s major industries- with finance, real estate & professional services bearing the largest brunt at an estimated loss of 17.3 percent.
Impact of key industries
The loss incurred by enforcing a lockdown in the country was estimated at 26 billion U.S. dollars and a significant decline in GDP growth is also expected in the June quarter of 2020. With the imposition of restrictions on transportation worldwide, the trade sector also hit the rock bottom. Exports and imports saw a drastic decline in the country especially in the case of essential commodities such as petroleum, food crops, and coal, among others.
Effect on business in India
The growth rate of the automotive business in India was expected to be the most adversely affected followed by the power supply and IT sectors. Furthermore, many startups, small and medium enterprises in India expected to face issues of supply disruption and a decrease in demand. The effects of aid from the Narendra Modi-led government was, until April, arguably deemed inadequate in the face of a faltering economy.
By – Shubham Aggarwal