Impact of COVID-19 on The Indian Economy

The COVID-19 outbreak is an unprecedented shock to more than 200 countries and territories affecting the global economy. The Indian economy, (a developing economy), was already in a parlous state before the pandemic struck. With the extended country-wide lockdown, global economic downturn and associated disruption of demand and supply chains, the economy is likely to accelerate further slowdown. The magnitude of the economic impact will depend upon the duration and severity of the health crisis, the duration of the lockdown, and how the situation unfolds once the lockdown gets over. The infographic listed below describes the state of the Indian economy during the crisis.

Impact of COVID-19 on The Indian Economy

COVID-19 outbreak has infected millions of people in 213 countries across the world. India stands at the fourth position, with 4.5 lakhs confirmed cases and more than 14,000 deaths (as on June 24, 2020). The impact of the COVID-19 pandemic had not only brought the global economy to a standstill but set the clock backward on the progress of several nations. India, like other countries, is also facing an unprecedented economic crisis and disrupted social life due to the outbreak. The infographic below explains the impact of COVID-19 on the Indian economy.

Impact of COVID-19 on Indian Economy:

Indian economy lost over $4 million during the first 21 days of lockdown
Foreign exchange reserves decline by $902 billion to $474.66 billion (April 2020)
India’s exports shrank by 60.28% (April 2020)
Imports plunged by 58.65% (April 2020)
International Monetary Fund projected the Indian economy to grow at 1.9% in 2020-21 (April 2020)
Unemployment rose from 6.7% to 26% (April 2020)

Impact of COVID-19 on Education Sector in India:

Since March 2020, 285 million young learners have been affected due to COVID-19

E-learning Programs:

E-learning has shown a 25% uptick since March 2020
Zoom’s market capitalization has reached $48.8 billion on May 15, 2020
30 million minutes of watch time by students on Unacademy every single day
Coursera provided free access to its Course Catalog for Campus until July 31, 2020
Digital initiatives taken by the government include,
- DIKSHA portal serves as National Digital Infrastructure for Teachers
- e-Pathshala hosts educational web resources for students, parents, researchers and educators in rural areas

Online educators and the New Normal:

98% of educators think that interactive video will be essential in the future
93% of educators believe predictive analytics will change education
89% of educators are interested in immersive technologies

Future of E-learning:

The market for eLearning will reach a $300 billion market value by 2025
Use of Artificial Intelligence in education to grow by 48% by 2022
Mobile internet users in India to reach 85% of households by 2024

Impact of COVID-19 on Pharmaceutical Industry in India:

The pharmaceutical firms are set to see growth in the near term.

India’s Nifty Pharma Index has risen 18% this year
From March to May 2020, healthcare products are being sold on a large scale
- Around 4-5 million N95 masks by HLL Lifecare
- 2 million pairs of Nitrile gloves
- 1 million protective goggles
- 2 billion three ply surgical masks
- 2 million 500 ml bottles of hand sanitizers
Respiratory therapy drugs witnessed the highest sales and a growth of 23% in April 2020
Prices of vitamins and penicillin saw a surge of 50% in April 2020

Impact of COVID-19 on Tourism Industry in India:

The World Travel and Tourism Council India Initiative (WTTCII), Federation of Associations in Indian Tourism and Hospitality and Confederation of Indian Industry (CII) predict that in the months of April, May and June 2020,