A report said that local lockdowns, night curfews and movement restrictions in important centers of the country would result in an average loss of $ 1.25 billion per week to the economy.
The growth rate of gross domestic product (GDP) in the first quarter of the current financial year may be affected by 1.40 per cent.
Corona’s cases have become unbridled. Perhaps the economy is worse than that and the government understands the value of lockdown better. This is the reason why Finance Minister Nirmala Sitharaman said on Tuesday that the government will not impose ‘lockdown’ on a large scale and only local control measures will be taken to prevent the epidemic. Do you have any idea what the economy has to pay for this lockdown?
Amid growing cases of corona virus, many states have started curbing the movement and business. In such a report, it has been said that due to local lockdown, night curfew and movement restrictions in important centers of the country, the economy will suffer an average loss of $ 1.25 billion every week. Also, it may affect the growth rate of Gross Domestic Product (GDP) in the first quarter of the current financial year by 1.40 per cent. A report by UK brokerage company Barclays says that if the current curbs remain until the end of May, it could result in a collective loss of economic and commercial activity of $ 10.5 billion and a GDP loss of 0.34 per cent at current prices.
India is at the forefront of infection
India is now at the forefront of the world in new cases of infection. Now India has left the second and third most affected countries America and Brazil. The country received 1.62 lakh cases of infection on Tuesday and 879 people died. According to the data released in the morning of the Union Health Ministry, the infection cases have reached 1.37 crore in the country so far. 1,71,058 people have died due to this epidemic in the country.
Thoughts on two-week lockdown in Maharashtra
Cases of infection are increasing daily in various states. Maharashtra alone accounts for 48 per cent of the total cases. In Delhi too, some restrictions have been placed on the movement. In Maharashtra, a full two-week lockdown is under consideration. Barclays said that during the last few days there has been a curb and night curfew on lockdown and movement in important economic centers of the country. This will cause a loss of $ 1.25 billion to the economy in a week. A week ago, the economy was losing $ 52 million on a weekly basis.
There will be a loss of $ 10.5 billion
Barclays said that if seen on a quarterly basis, the loss would be much larger. This will result in a fall of 1.40 percent in GDP. Barclays India chief economist Rahul Bajoria said that if the curbs imposed by COVID-19 persist until the end of May, we estimate the economy to lose $ 10.5 billion in total, or 0.34 percentage points in GDP at market prices. Will happen. This report has been written by Bajoria and Shreya Sodhani.
Bajoria said that the economy will suffer more in the first quarter. This would result in a loss of 1.40 per cent of GDP at the current price.
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