Corona Virus Effect: $120 billion loss to economy due to lockdown, unorganized sector will be hit badly: Experts believe that the closure of the country to prevent the infection of corona virus can cause a loss of about $ 120 billion (about nine lakh crore rupees) to the economy. This is equal to four percent of India’s gross domestic product (GDP). Experts also cut the economic growth forecast on Wednesday, stressing the need for a relief package.
Prime Minister Narendra Modi has announced a nationwide ban for three weeks to prevent the spread of corona virus infection. Barclays, a research-consulting company, has predicted a growth rate of 3.5 percent for the financial year 2020-21 to be 3.5 percent. He said, “We estimate that the price of nationwide detention could be around $ 120 billion, or four percent of GDP.”
The company said that the three-week shutdown of the central government would result in a loss of $ 90 billion. In addition, many states like Maharashtra have already been imprisoned, it will also cause damage. Barclays also said that in April, the Reserve Bank will cut the repo rate by 0.65 percent and it will be cut by another percentage in the next one year.
The domestic research-consulting company MK congratulated the government for taking quicker steps than other countries and said that no measures have been taken to reduce the economic losses. He said, “The government has so far remained silent on the economic impact of the detention, let alone the measures to reduce the impact.”