{"id":71066,"date":"2020-09-06T10:57:23","date_gmt":"2020-09-06T05:27:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=71066"},"modified":"2020-11-27T11:00:40","modified_gmt":"2020-11-27T05:30:40","slug":"covid-19-and-indias-road-to-economic-revival","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/covid-19-and-indias-road-to-economic-revival\/","title":{"rendered":"COVID \u2013 19 and India\u2019s road to economic revival"},"content":{"rendered":"

Source \u2013\u00a0<\/b><\/strong>The Indian Express<\/b><\/u><\/strong><\/a><\/p>\n

Syllabus \u2013 GS 3 \u2013\u00a0<\/b><\/strong>Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.<\/p><\/blockquote>\n

Context \u2013<\/b><\/strong>\u00a0\u2018Unlocking\u2019 and \u2018Revival package from the government\u2019 are the two basic factors that will determine the course of India\u2019s economy for the rest of the year.<\/p>\n

Impact of COVID-19 on GDP<\/b><\/strong><\/p>\n

GDP contraction<\/b><\/strong>\u2013 India\u2019s economy shrank nearly 25 percent in last quarter, the most drastic fall in decades. The following sectors reflects how deep the problem is-<\/p>\n

    \n
  1. <\/b>Public administration<\/b><\/strong>\u2013 Higher government spending was in the form of transfer payments rather than spending on goods and services, which resulted in a negative growth number.<\/li>\n
  2. <\/b>Manufacturing and Services<\/b><\/strong>\u2013 The sector has been in the negative zone across the board due to the national lockdown since end of March.<\/li>\n<\/ol>\n

    Factors that influence the growth prospects for the coming quarters<\/b><\/strong><\/p>\n

    \u00a01<\/b><\/strong>st<\/b><\/sup><\/strong>\u00a0Factor \u2013 Unlocking economy activity-<\/b><\/strong><\/p>\n

      \n
    1. <\/b>Unlocking frictions<\/b><\/strong>in nine core sectors and the MSME segment, which make up 75 per cent of the pre-pandemic GDP, can significantly uplift the economy.<\/li>\n<\/ol>\n

      The following sectors are-<\/b><\/strong><\/p>\n

      \"\"<\/p>\n

      Challenges<\/b><\/strong><\/p>\n

        \n
      1. <\/b>Industries in which it is harder<\/b><\/strong>\u2014<\/li>\n<\/ol>\n