AN ASSESSMENT OF THE POTENTIAL EFFECTS OF COVID-19 ON THE INDIAN ECONOMY: IMPLICATIONS FOR GDP GROWTH, EMPLOYMENT, TRADE AND SECTORAL PERFORMANCE

Abstract

COVID-19 impact will be debilitating for the global as well as the Indian economies. Economic condition in India will undergo huge downfall for prolonged period due to fall in economy worldwide and country-wide lockdown. This is also the cause of interruptions in supply chains and customer demand. Based on the valid statement of Centre for Monitoring the Indian Economy (C.M.I.E), unemployment rates in India have surged to 27.1 (percentage) as compared to the situation in 1982, where unemployment rate was observed to fall by 10.8% as of November after Second World War. Even 20.5 million Americans lost the job in April. Furthermore, investments in the fund industry based on AUM (Assets Under Management) increased by र 45,999.48 as per data provided by AMFI (The Association of Mutual Funds in India). The COVID-19 epidemic has been unprecedented in its impact on society. The research objective highlights on evaluating the challenges and issues faced by Indian Companies during the COVID-19 period. The study collected primary data through a combination of quantitative and qualitative techniques, namely interviews and surveys. A survey of 100 respondents from Hyderabad was conducted to gather quantitative information, with participants selected using a practical probability sample method. To gather comprehensive details about the difficulties faced by firms, extensive telephone-based interviews were undertaken. The entire dataset was utilized to create an organized survey. The examiner employed the Chi-Square Test, a widely-used statistical technique, in the analysis of the gathered data. Indian companies are facing ample issues and challenges during the COVID-19 crisis. Several sectors in India are affected by COVID-19 pandemic that resulted into business downfall thereby affecting Indian economy. Along with this, livelihoods, food consumption and security and agriculture are also highly affected. There has been a sizable influence on the Indian economy as demonstrated by the Chi-Square test results. The researcher also found that for COVID-19, many companies are facing issues and challenges in smooth business.

Keywords- COVID-19, Effects of COVID-19, Indian Economy, Challenges and Issues.