COVID-19 and Impact of Policies Measures on Indian Economy

Abstract

After the great depression of 1930s, present economic slowdown caused by COVID-19 is worst recession faced by the global economy that has laid the adverse impact on all the economic activities across the world. After the spread of COVID-19 many countries, including India, locked down their economies. The present research paper is guided through the global economic scenario but mainly focus on the impact of various policies measures introduced in pandemic on the Indian Economy. The study empirically examines the impact of social distancing policies on corona virus active cases, death due to corona and economic activities. The study concludes that entire world economies are moving towards recession deeper than expected. Social distancing policies and lockdown restrictions were imposed in many countries, and there have been arguments that such social policies can trigger a recession. The effects of COVID-19 are still uncertain. The study further concludes that 3 months social distancing policy or lockdown restriction hit the economy adversly through a reduction in the level of general economic activities.

Keywords: Covid-19, Indian Economy, PMI

JEL Classification: E01