A report by international management consulting firm Arthur D Little has highlighted that the Coronavirus outbreak will hit India the worst and the brunt will have to be borne in terms of job loss.
As India is reeling from the Coronavirus pandemic, the impact at the economic front has been so strong that soon millions of people are likely to lose their jobs and be pushed on the brink of poverty while the country’s GDP subdues. A report by international management consulting firm Arthur D Little has highlighted that the Coronavirus outbreak will hit India the worst and the brunt will have to be borne in terms of job loss, according to PTI. The news agency citing the report also highlighted that around 135 million jobs could be lost while approximately 120 million people will fall below to the poverty line which could be a grave condition in India.
The report said that as people will lose their jobs, an evident impact will be seen in terms of spending, and reduced per-capita income further pushing down the country’s GDP from the growth ladder. The consulting firm has predicted a GDP contraction of 10.8 per cent for the current financial year adding that even in next financial year the GDP growth is expected to be marginal 0.8 per cent.
The report titled “India: Surmounting the economic challenges posed by COVID-19: A 10-point programme to revive and power India’s post-COVID economy” highlighted that the country may face an opportunity loss of $1 trillion dollar. It is to note that before the Coronavirus uprooted many economies in the world, India was aiming to lift its $2.9 trillion dollar economy to $5 trillion dollars. The report has suggested that the country should follow a 10-point programme that will help accelerate the economic recovery by providing safety to vulnerable, small and medium businesses. A suggestion asserted by the report said that launching ‘Make in India 2.0’ will help the country capture global opportunities and has asked the government to focus on ‘Modern India’ to strengthen the country’s digital platform.
Meanwhile, the Narendra Modi-led central government in India has announced a Rs 20 lakh crore relief package to help the companies grow and survive the losses incurred due to a nationwide lockdown of over 40 days. The relief has measures to help MSMEs and other sectors by pushing some liquidity within the system required for kickstarting the economy.