Gujarat Exclusive > National-World > Fragile Indian economy will collapse due to lockdown: Report

Fragile Indian economy will collapse due to lockdown: Report

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The 21-day lockdown imposed by the Narendra Modi-led government to contain the spread of coronavirus in the country can result in the “fragile” Indian economy collapsing and more people losing jobs, a New York Times report suggests.

It says that for a country of 1.3 billion people, the lockdown means “starving” as the state-ordered paralysis of virtually all commerce in the country has put millions of people out of work and left many families struggling to eat.

Notably, India has so far reported 649 cases till 10.15 am on Thursday with 13 deaths.

“…with the population density so high and the public health system so weak, Prime Minister Narendra Modi ordered the country’s 1.3 billion residents to stay inside to keep India from sliding into a disaster that could potentially dwarf what China, Italy, Spain, the United States and other countries have faced. But Mr. Modi’s effort to prevent the spread of the virus will lead to its own calamitous damage” the report read.

Citing the prediction of economists at Barclays, the report said the lockdown would shave two percentage points off India’s “anemic” economic growth rate. Although India is likely to escape a recession, Barclays said, such a significant slowdown would mean rising joblessness in a country where millions of young people enter the workforce every year.

Notably, PM Modi in his address to the nation had clarified that he is aware that the lockdown would entail a huge economic cost for the country, but his government’s priority is to save lives.

Economists have also urged the government to come up with a robust stimulus package to blunt the impact of the virus and the subsequent lockdown.

First coronavirus death reported from Ahmedabad Civil Hospital, Gujarat’s toll reaches 2