Corona will continue to have an impact on the Indian economy till 2025 and among the major economic activists of the world, the Indian economy will suffer the most due to the outbreak of this pandemic. In a recent global report by the international organization Oxford Economics, it has been estimated that by 2025, India’s per capita GDP will be lower by 12% than before covid.
In its latest report on the Indian economy, the world’s economy watchdog, Oxford Economics, has said that between 2020 and 2025, the economic growth rate is forecasted to fall to just 4.5% from the estimated 6.5% before the covid epidemic.
Priyanka Kishore, an economist at Oaksforce Economics, “Due to lack of necessary and detailed fiscal response to sustain the improvement in private demand, we have found that this panidemic has put India in a worse situation than the pre-covid situation. It will be pushed directly. This will have the direct effect that India will be the most damaged among the major economies of the world. Our estimate is that even by 2025, India’s per capita GDP will be down by 12% compared to before covid. “
Former economist T Haq said, “The situation has worsened due to covid. Unemployment is at a higher level. The supply package that has been given has been kept in view of the supply side. More is needed now to pay attention to the demand side, so that people get more money. “
On the other hand, questions arising from the weak economy have given the opposition another opportunity to target the government. On Friday, Congress opposed the government’s decision to stop the increase in dearness allowance for employees of central public sector enterprises by June 30, 2021 … its impact on more than 14.5 lakh employees of 339 central public sector undertakings will have it.
Congress spokesperson Supriya Srinate said, “What more proof is needed for the government to accept its relentless economic mismanagement? After being one of the 3 fastest growing economies in the world we are now among the 7 slowest growing economies one. The government cannot hide behind Corona alone because the economy had already collapsed before Corona, there had been a decline in economic growth in the 8-consecutive quarters of Corona. “
Clearly, the growing crisis of Corona is also increasing the challenges of the economy. It will be important to see how the Indian government deals with these questions and the crisis of the economy.