Indian economy expected to suffer $4 Billion due to nationwide lockdown

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Indian economy expected to suffer

The Indian economy is expected to take a big hit in the following days as it will suffer over €4 billion per day. The rapid spread of the coronavirus outbreak triggered a 21-day complete shutdown. This will result in a gross domestic product loss of almost $98 billion US dollars.

“While the countrywide shutdown is scheduled to be lifted on April 15, 2020, the risks of prolonged disruption in economic activities exist depending on the intensity of the outbreak,” stated the Acuite Ratings & Research agency. They also added that it will have significant economic consequences. The Indian economy is expected to suffer a lot.

According to the agency’s estimates, “ every single day of the nationwide lockdown will cost the Indian economy almost $4.64 billion”, said Sankar Chakraborti, the CEO of the rating agency.

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Between the most severely impacted businesses are hotels, restaurants, transport companies, and real estate agencies. “ In our opinion, there would be at around 50 percent GVA (gross value added) loss in these sectors, which account for around 22 percent in overall GVA, in Q1 of FY21,” the agency said.

According to the Ministry of Health and Family Welfare in India, the total number of coronavirus cases reached 2,567, out of which 156 recovered and 72 passed away.

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