Covid-19 and Indian Growth Trajectory

Abstract : About the last one year, more than 180 nations are in the same line of threat by the disastrous pandemic of Corona Virus Disease 2019 or the COVID-19. The impact and shocks created by this on the polity, society and economy in the global level is highly overwhelming. There is high unprecedented collapse in the global supply chains. It is therefore much care is required for economic intervention in this area. It is the same fruit of globalisation which makes the issue worse and in this modern globalised world, cross-country linkages were the major route of these supply chains. Looking much into the developing economy of India, what are the major problems and impact of the pandemic on the economy briefly elucidates as even in 2008, amidst the problem of demand shock, employment was more or less affected in the country. But now it comes to stagnation in real effect. Moreover, this issue is also a reverberation of supply shock with a simultaneous presence of subdued demand and production slowdown. That is the overall growth of the economy is grinding to a halt. It is very important to analyse the economic impact of COVID-19 on the actual and expected growth rate in Indian economy to understand how much and to what extent the pandemic worsened the existing situation of economic slowdown in the country. The need of this anomalous analysis is to be done in order to find an answer to the much debated political and economic policies of the present government in power, so it could be more a political question which is of clear righteousness. In this paper we would look more on the pragmatic need of the policy reforms to trim down the negative effect of the pandemic on the economy and to bring back the equilibrium which is clearly being traumatized. The paper also tries to explain the implication of the policy changes not only in a micro level rather concentrating on a macroeconomic perspective. It would be clear throughout the analysis that an unblemished and sturdy expansionary policy is crucial for macroeconomic management and need to be coherently co-ordinated with monetary and exchange rate policy for boundless impact.