The corona epidemic continues throughout the country for 50 days (CORONA LOCKDOWN). Partial exemption has been granted since April 20, but industrial activity is at a standstill, corona virus will have a profound impact on the economy. In a survey by the confederation of Indian industry a large number of people have expressed their fear of losing their jobs.
According to the online survey the decline in demand has resulted in the loss of most companies. It is expected to leave jobs. Most companies are expected to lose more than 10 percent of their earnings during the current quarter (April – June) and the previous quarter (January- march) and this could cause their profit to fall by more than five percent in both quarter.
In the case, if the situation in India and the world becomes worse, the selling pressure in the stock market may increase further. India’s growth rate can slip from 3.5 to 4 percent. The global economy can go into recession.
DECLINE IN HIRING ACTIVITY: In India there has been an 18 percent decline in job hiring in March this year, according to leading job portal Naukri.com, in the travel, aviation retail and hospitality sectors, job hiring has fallen by 56 percent, naukri.com chief officer pawan goyal said that in March 2020 there was a 5 percent decline in hiring activity naukri.com.
How much decline in hiring in which city:
Delhi – 26 percent
Chennai – 24 percent
Hyderabad – 18 percent
Delhi NCR is witnessing the highest 66 percent decline in hiring activity. Over 13 years of experience has recorded a29 percent decline in hiring. There has been a 29 percent drop in hiring of 7- year experience from zero.
Problems after the end of lockdown:
More than 120 million workers in India, most of them small traders and daily wage earners, lost jobs in April as economic activity all but ceased after the new corona virus pandemic forced a nationwide lockdown.
Data released this week by the Mumbai-based think tank Centre for Monitoring Indian Economy shows that unemployment shot up to 23.5% last month from 8.7% in March. In the week ended, it jumped to 27.1%, the highest ever.
The rate of unemployment was the highest in the urban areas, which constitute the most number of the red zones due to the COVID-19 cases, at 29.22 percent, as against 26.69 percent for the rural areas. It is being said that 100 million people will be unemployed.
- Gross domestic production(GDP)
The ongoing lockdown caused by the corona virus across the country can have an average impact on the economy, particularly on consumption, which contributes the largest to the country’s GDP.
According to the KPMG report, even a slight reduction in urban transaction can reduce consumption of non- essential items. However, if the domestic supply chain is disrupted during the lockdown, then this effect may be seen more because the availability of essential commodities may also be affected.
Weak domestic consumption and consumer sentiment will delay their investment, which will put additional pressure on growth. After Covid- 19 some economies are expected to adopt a de – risking strategy and move their manufacturing facility away from china, and this strategy will serve an opportunity for India.
India’s population has reached very close to 130 million people. Now above all UNICEF has frightened India further by saying that they estimate that the numbers of Indians going to stay home during lockdown is going increase and India’s population will be 132 crores in the next seven month.
Two crore children will be born by December UNICEF has estimated that India’s maximum of 2 crore children can be born by December. UNICEF guess ahead of it is just as scary. And the inference is that the corona may cause the mother child to face a frightening reality, and steps such as lockdowns taken to control the corona virus may adversely affect health services.
- Troubles for laborers and migrant worker
The soon-expected end of corona virus-led lockdown may not be the end of troubles for many, especially laborers and migrant workers. The end of lockdown will likely dawn a new phase of complexity for them, as labor exploitation may rise naturally in the pockets where there is an oversupply of workers, even as the industry seeks to dismiss the idea of such a situation arising. The exploitation of the labor class may rise after the lockdown is lifted, as more and more people try to regain their jobs and financial health, making an oversupply in the market.
Plans to study abroad stuck
With the outbreak of Corona, there has been an abrupt break on these international study ambitions. Earlier last year, the number of internationally mobile students from India crash due to challenges emanating from the diplomatic policies of the US and other destination countries.
However, COVID-19 has come as a miraculous challenge to international education. Just as much as it is a concern for students eager for the experience of studying abroad, the host universities are also in deep distress over how to fill the gaps in diversity management and anticipated deficits in their own budgets.
Last year, over 7.5 lakh Indian students opted to study at universities abroad with the US, Canada, Australia remaining the top inspirational destinations followed by UK and Germany. The abrupt outbreak of Corona has alight such aspirations of young Indians. For the academic year starting August-September, students should have admirable started Visa applications that have come to a grinding halt at present.
Effect on education sector
As we know that due to corona virus pandemic the state governments across the country temporarily started shutting down schools and colleges. As per the present situation, there is an ambiguity when schools and colleges will reopen. No doubt, this is the crucial time for education sector because entrance tests of several universities and competitive examinations are held during this period.
But now the problem is that when lockdowns ends and the schools open all the problems will come because there are 34 crore students and their safety is also very important and that’s why government and educational department make strategies how to open schools.
According to HRD Ministry officials, whenever schools and colleges reopen, proper social distancing norms will have to be followed as health and safety of students has to be the priority.
So these are the problems that will come after lockdown.
Apart from these problems, more such problems will come for which we have to be ready. And a government should also be made a strategy for these problems right now. Because when lockdown is completely opened then government implement those strategy. So that students or workers do not have trouble and unemployment does not escalate.