COVID-19: How Lockdown in India Impacted its Economy

HEALTH INSURANCE



Lockdowns amid coronavirus outbreak confined citizens to their homes, several businesses shut down, and different economic activities ceased. Upper middle-income and lower-income countries have are significantly impacting by a pandemic. "The global economy is expected to shrink by over 3 % in 2020 – the steepest slowdown since the Great Depression of the 1930s"- stated by International Monetary Fund(IMF). However, every country is putting an effort to uplift its market once again. India has also lifted restrictions and gradually restart its economic activities. Here's a look at how the COVID-19 lockdown in India has impacted different sectors:

Employment

Coronavirus lockdown has a more significant impact on jobs. Construction, hotel, travel, aviation, and food industries' employees suffered a lot. Shut down, layoffs, salary cuts, salary delayed, etc. are the issues people are still facing. Millions of skilled and unskilled immigrants moved back to their home towns that result in the shortage of workforce for manufacturing units in the country. Moreover, the global outsourcing industry is also shaken and work from home for BPOs, and KPOs are getting complicated now. 

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Businesses 

Businesses related to construction, tours, and travels, aviation, hotel, etc. have been deeply impacted due to lockdown in India. There is a drastic change in consumer behavior. Now, consumers are more likely to spend on groceries, health care, and hygiene. They want to keep their money safe for the future. People now hesitate to invest in properties, outing, and vacation. It results in a big downfall of demand.  

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Retail

Thousand of retail stores in different parts of the country remain closed for an extended period due to COVID-19 lockdown. They have no sales and suffered substantial financial losses. If we talk about stores in malls for clothing, shoes, jewelry, and cosmetics, they are still closed and waiting for the government's approval. However, the grocery stores are back in the form but with a limited number of customers. People prefer to buy online now instead of going to store for groceries shopping. They like to swipe their phone screens for online shopping instead of taking the risk to go out for purchasing. This change in customer's behavior impacting the retail business a lot. 

Health Sector

The health sector is more like an epicenter of this pandemic lockdown in India. Countries, including India, face the shortage of raw material, essential medical supplies, and drugs. Moreover, medical staff, including doctors and nurses, are getting infected while treating COVID-19 positive patients, creating a scarcity of healthcare employees in the hospital. Thus, lack of good health care and increasing medical inflation giving rise to the need for the right health insurance plan in India. People are getting more conscious about their health and expenses and investing in comprehensive health insurance policies.

Conclusion

Nonetheless, the impact of COVID-19 lockdown in India on different companies varies and depends upon the nature of the business. The Indian government is working on its toes to combat the ill-effects of a pandemic. As the economic activities resume gradually, the situation will take time to normalize. But, it would help if you also stay prepared to face any medical emergency at your home. Opt for Corona Kavach Health Policy- a one-stop solution for your COVID-19 health care needs offer by Care Health Insurance (Formerly Religare Health Insurance). It is the best health policy in India that not only covers your hospitalization expenses but gives you a financial cushion during a health emergency. Don't be a victim of this deadly virus, grab the health insurance, and save yourself and your family now.

*Disclaimer: Underwriting of claims for COVID-19 treatment is subject to policy terms and conditions.