By Sara Saxena
How this deadly virus hints at a looming financial crisis...
Covid-19 has created not just a health emergency, but a financial crisis. It could not have come at a worse time for India, already in the middle of a slowdown.
Covid-19 has led to an economic lockdown:-
The coronavirus lockdown hasn’t been easy on India or its 29 states and seven union territories.
The worst-hit are the orange and red zones where economic activity came to a near standstill. Green zones, on the other hand, remained relatively sheltered. The combined loss of orange and red zones is around 90% of the total loss suffered.
The International Labour Organization estimated that COVID-19 has destroyed up to 25 million jobs.
As COVID-19 wreaks havoc, the casual workers remain the worst affected.
About 75% of workers are either self-employed (rickshaw pullers, carpenters and plumbers) or casual workers who are not covered under any provision or get any paid leave. They have lost their jobs now.
A very large segment of the workforce will be economically crushed and vulnerable.
Rising malnutrition is expected, as 368.5 million children across many countries who normally rely on school meals for a reliable source of daily nutrition must now look to other sources.
Lockdown has put great stress on the supply chains of essential commodities, and therefore, many Indian companies have focused on the production and supply of essential items only.
As the country tries to contain the outbreak, schools, universities, malls and cinemas remain shut down. No international flights will be allowed to land for a week in India.
Domestic passenger flights services might commence. There is rising confusion over what quarantine rules may apply to the travelers.
Today, everyone is staying in, following Prime Minister Narendra Modi’s call.
It is a health emergency as well as a financial crisis — and no one knows how grave this will be and how to end its stay.