Indian Economy is Facing Difficulties, Here explained some points
Indian Economy is Facing Difficulties | What are the reasons
During the Covid-19, India has faced many difficulties. Decreasing the economy rate is one of the worst problems which India is facing today.
- As per the information of the researchers of the Massachusetts Institute of Technology (MIT), we get to know the original details. According to them, if the effect of Coronavirus has been continuing, India may have big issues. India can have new cases daily about 2.87 lakhs. And we can see this figure at the end of this year or by early 2021.
- Therefore, if the vaccine of Covid-19 is not developed at the earliest, there is a big economic decrease meant is waiting for us in the near feature. But there is good news regarding the vaccine. America, Oxford University, and China have succeeded in their training of vaccines this year.
- All three countries have reached their third phase as they got success in those stages before. (The third stage means that a vaccine can be treated into 10,000 of people where the first and second phase of the treatment mean to test 100 and 1000 of people respectively). But if there is any problem in the first or second stage, scientists need to start their process again.
- The researchers assume that India can have new cases at the end of the next year. As India has the second largest population in all over the world, it becomes a big risk for the world business. India has the largest market of trade which is decreasing day-by-day.
- Besides, the main reason for reducing the economy rate in India is the lockdown which started in March. But, there is a new picture which people get to see. During the unlocking period of Covid-19, the number of affected people became twice of the number of affected people in the lockdown period. Though indeed, the number of tests is also increasing, still this is a big issue for our country.
Why the economy rate is taking time to increase | Indian Economy is Facing Difficulties
- As the lockdown makes a critical situation in our country, it looks very difficult to handle the economy in the next year. Even, the year 2022 is looking good compared with 2021. Our country contains a huge number of poor people.
- And most of the farmers and the laborers come from Bihar, Jharkhand, Orisha sides. Where the number of vehicles in our country before the lockdown is about 70-75 lakhs, the number is now about seven lakhs. There is a 90% decrease meant in the vehicles which shows that economy is still not appropriate. Indian Economy is Facing Difficulties
- The business has given its big effect. The lockdown has affected small businesses. Therefore, the demand of people became lower. The restaurants are closed to maintain the social distancing rule. That’s why, if the demand is not there, the supply of the products will also reduce. The manufacturers don’t take interest to carry the production method.
- The affected number of people is still not flatted. As a result, people avoid going outside. They are preferring to stay in the home. Indian Economy is Facing Difficulties
- As the company gets less profit, they can’t afford to provide money to their employees. Therefore, employees will lose their job. According to the statistics, it is seen that about 1 crore of people will lose their job. The unemployment rate is increasing rapidly from the end of March to the early of May. This is also a big reason for not increasing the economy.
When the economy rate is assuming to get balanced?
- The production of the company is dependent on the bank. The economy rate will increase when the bank will start to provide the load for production purposes. But now people merely deposit the money, don’t take fresh loans. As the economy rate is very low, no one takes interest in taking loans.
- But there is a fact that the bank will give people loans getting the interests of the people. That’s why, if we don’t take fresh loans, it will be difficult for the bank to provide a loan. But we saw that the NPA became ten lakh crores for previous loans before the lockdown.
- All countries stop visas like America has stopped visas for one year. As a result, Indian people started to return to their country. The population will be more increased when the money doesn’t come from outside. Indian Economy is Facing Difficulties
What are the problems in power consumption|Is there any Job recovery
Power demands are decreasing where the consumption of electricity is higher than in March. Indian Economy is Facing Difficulties
Many people lost their jobs during the lockdown. But the employment rate is increasing gradually. And the Indian labor market is also increasing slowly.
Retail trade in India | How much it can take time?
Retail trade has fallen sharply in India. There is a large decrease meant for the people. But we assume that the rate will increase in a few months.
Banks are facing issues for the lockdown
The deposits of people are increasing in the banks when the bank is unable to provide loans. Indian Economy is Facing Difficulties