With Coronavirus outbreak across the world, almost 70-80% of the global population is under lockdown and economic activities are on halt. Even the biggest of economic powers are struggling to find solutions to the problems that have arisen as the result of COVID-19. From the United States to Germany and from China to Japan, almost no country is left unaffected by the pandemic. The biggest question is certainly about the state of the global economy. According to multiple reports, the world is expected to experience recession for a couple of quarters.
The early experiences of starting the economy in China and some parts of Europe is a testament of how difficult the task is going to be. Even if India ends the lockdown next month and tries to bring the economy in practice, the Coronavirus might prove to be an obstacle. Workers returning to jobs are wary of community transfer, while not many shops are in practice, since shoppers are staying out of their jobs. If India decides to end the lockdown next month, cases might rise exponentially.
There have been voices in India and across the world to reopen factories, companies, malls, schools, etc. at a time when almost 1.5 lakh people have lost their lives and over 20 lakh are infected. In major cities of China, officials are luring people to come to restaurants. The United States of America launched a huge relief package for its citizens to help them pay bills. Streets in Austria, Italy, Greece, etc. are still empty, despite the government easing out some restrictions on movement.
Since the most affected area of the economy will be export, which doesn’t really matter for India, the country’s economy is expected to flourish at a better pace than rest of the world. India relies more on internal consumption, which industry experts believe would be a positive factor in future.