Are you very eager to know about the economy of India? But before knowing any news on economy of India let’s know what do you mean by the economy of any country? The economy of the nation gives a complete analysis of wealth which the nation earned from various sectors like trades, education, tourism, banking, etc in a particular interval of time. Presently the country is badly hit by coronavirus pandemic, despite intense lockdown, cases that are still rising in-country daily.
More than 1,70,000 COVID-19 cases have been found as of now. Due to this pandemic, each sector of the country is suffering a lot. Either you talk about banks or businesses they are affected very badly. Banks are daily lowering interest rates and making various policy changes. While on another side small businesses are on the verge of shut down.
The economy of India dipped from 4.2 % to 3.1% in the first quarter of the year 2020 i.e. from January to March. Many experts are saying that it is going to almost worst in the next quarter i.e. from April to June. There is no industry that is not affected by the coronavirus pandemic.
There are mainly Four Sectors which Contribute to Economy
1. Primary Sector
The primary sector includes the separation of unprocessed materials like Agriculture, fishing, etc. It is considered the backbone of the Indian economy. This sector mainly relies on the accessibility of natural sources for its production. There are already issues of unemployment in this sector. Due to coronavirus, this sector is suffering the most.
Although this sector donates less as compare to other sectors it is a very considerable point that the primary sector gives employment to almost 53% of the total population of India. Major villages of India depend on farming to fulfill their basic needs and stomach which is a part of this sector.
2. Secondary Sector
The secondary sector mainly comprises construction, electricity, manufacturing, mining, and water supply. It is also called as industry sector of the Indian economy. This sector donates 26.6% to the nation’s GDP.
This sector provides jobs to almost 14 percent of India’s population. This sector is considered the backbone of the economy in terms of its GDP contribution.
3. Tertiary Sector
The tertiary sector donates 54.3 % to the GDP of India. It has the largest share in our economy. Defense, Finance, trade, hotels, restaurants, transport services, services, and communication comes under the tertiary sector. This sector is also known as the service sector of the economy.
The tertiary sector gives employment to about 23 % of people in India. But the main issue in this sector is there are various jobs which offer low salaries to the people.
Due to the coronavirus pandemic, all the sectors experienced a massive downfall. Aviation, tourism, MSME, Automobile sector, and real estate sector have witnessed a major drop in their revenues.
Relief Package to Revive Economy
Now, a few days before the honorable prime minister of India has announced one of the biggest relief packages for various sectors of India. The relief package costs a whopping 20 lakh crore. The whole package covers almost 10 % of our GDP.
Firstly, the 1.7 lakh crore package is for poor and needy people i.e. the government will supply basic food supplements to these people. Our nation’s PM said, “A special economic package is being announced to make India self-reliant,”. PM Narendra Modi also added in his third address during coronavirus lockdown by saying – ” This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10 percent of India’s GDP.”
He also said that the package will help various sectors including laborers, middle class, contractors, MSMEs, industries, etc.
Hence the coronavirus bought a huge crisis over the country proved to be disastrous for our economy. But the government has planned for the revival of the economy and announced a big package for the maintenance.
Source: Economic Times