Globalization and Indian economy during covid-19: Development and challenges

Abstract

An unexpected blow for the Indian economy is the onset of the Covid-19 Pandemic. Before Covid-19 hit, the economy was always in a prime position. The economy is expected to experience a long recession with a longer country lockdown, a worldwide economic crisis, and related disruption of demand and supply networks. The size of the economic impact depends on how long and severely the health crisis will last, and how the scenario will evolve once the lockout has been ended. The purpose of this study is to evaluate COVID-19 on the Indian economy by assessing its effect on growth, production and trade etc. Throughout the study, we will also examine the post-globalization and the present situation of the country. The effects of the pandemic on the Indian economy at various levels in many sectors and various scenarios of the full, expanded, and partial shutdown are huge. In an optimistic scenario, the economy of India can barely be succeeded with a positive 0.5% growth rate, but also faces the potential for a negative 3-7% growth in the worst possible cases of the calendar year 2020. Trade, manufacturing, and growth industries are seriously affected. The anticipated impact (deceleration) of COVID-19 from the best-case situation to the worst scenario is that the production has declined from 5.5% to 20%, exports from 13.7% to 20.8%, imports from 17.3% to 25%, and growth net added value (NVA) by 2000 from 2.1% to 5.7%. The economic slump is underway and methodical, well-considered and strong stimulus spending measures are required.