Answer to Question #205174 in Microeconomics for Harshal Bansode

Question

Write your view (in 500 words) on the impact of the Covid-19 pandemic on the macroeconomic variables of the Indian economy. (20 marks)

[Evaluation criteria:

Parameters assessed: Selection of the item, quality of analysis and explanation of the item.

Traits observed: Demonstrated appreciation of issues involved in totality, Logical and easy

flow of response.

Superior Response = 90%

Average response 60-70%,

Poor and/or sketchy response 50% or less]

Answer 1

There is a big shift in India's economic market and the share market has experienced crashes daily. Restaurants, factories, markets, malls, pubs, supermarkets, flights, colleges and universities were shut down and lockdown imposed. Consequently, India faces a huge decline in collected government revenues and growth of income. There has been a fall in the investment sector which has impacted privatization plans, government and industry. The lockdown has had its impact on consumption which is the biggest GDP component. Flights shut down has led to the disruption of the supply chain and global trade. As a result, there is spillover effects throughout different levels of supplier networks leading to a recession.