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Impact on Country’s GDP amid COVID 19

December 24, 2020

Impact on Country’s GDP amid COVID 19

The world is witnessing Pandemic 2020 i.e. COVID 19 or Novel CoronaVirus. World around us stopped still, while the virus kept out spreading as it travels through air and can also stay at the surface for a significant time period. The challenging part about this virus is one cannot make out who has coronavirus in them. The virus can spread from person to person and transmitter of that virus would be unaware about him or her being positive. Asymptomatic ones were the threat to spread virus as there were no vaccines or medication. The only solution was to keep distance from each other i.e. Social Distance.

To ensure the chain of this virus breaks, the Government took some concrete steps like to quarantine the affected person, suspected person, as well as their families to be thorough. The most important decision was to impose a nation-wide lockdown. In this lockdown no services other than essential services were allowed. From Airports to Trains to Metros, Schools to Colleges, and Factories to Shops and everything in between were on a halt in this lockdown. This not only affected common people but also the country’s economy and GDP.

The GDP is Gross Domestic Product which is determined as the total monetary of all products and services produced inside the country. To be precise, the GDP is everything that is sold or bought within geographical boundaries of a particular country that makes that country’s GDP. There are different factors that affect GDP on a normal basis, some are mentioned below:

Leisure Preference:

Leisure Preference among workers is an obvious thing to have, but this affects GDP. On leisure time workers don’t work so there is no buying or selling at that specific period of time which ultimately affects total money that could have been accommodated. Workers can develop their special interest and hobbies, they can learn or study for various entrance exams. Workers can work and in leisure they can prepare for the exam they wish to appear according to exam dates. For example, rrb group d exam date is now available so they can study in leisure time between work.

Non-Market Activities:

Non-Market Activities are work done in the interest of social-welfare or their own. Non-market activities are like any other work but workers don’t get paid as it is a social work for betterment of our society or for themselves. People like professional teachers and housewives who work for themselves and family are not paid for their work which happens to be paid if worked for others and this is where they are considered in GDP. These Non-market Activities do not contribute to a country’s GDP or Gross Domestic Product.

Unemployment caused by Lockdown

Everything around us halted for almost 6 months. The Unlock process started but in stages. Most of the states and services have not started functioning manually. The MSME and SME were greatly affected as their graph dropped down to a complete zero. Most of the companies couldn’t survive and were shut down whereas others expelled their employees for their stability which reminded, “The Great Depression of 1929”. In India, Unemployment has always been an issue to deal with but this pandemic has forced people to sit at home doing nothing but waiting to get another opportunity to work. This has caused a huge drop in GDP as the government isn’t generating enough revenue from people in the form of tax collection.

Loss of Student’s Study

As school and colleges were shut down due to COVID 19, students didn’t study at all. Online classes weren’t enough for them. Well, privileged children could attend but underprivileged couldn’t, in the absence of smartphones and internet connectivity. The students were promoted to next year but the mandatory board and government exams were postponed but were conducted later. There were situations where all the pre examination process was completed including the Admit Card but pandemic turned all situations upside down. The rrb group d admit card was released but the exams were later postponed.