What are the challenges faced by the Indian economy in the post-Covid era
Explain the economic hurdles that have emerged due to the Covid-19 pandemic and their implications for the Indian economy
- Reduction in demand: The pandemic has led to a reduction in demand for goods and services, as people are staying indoors and avoiding non-essential purchases.
- Supply chain disruptions: The lockdown measures have disrupted supply chains, which is affecting production and distribution of goods.
- Unemployment: The pandemic has led to job losses in many sectors, with several enterprises shutting down or scaling back operations to recover from losses.
- Economic inequality: The pandemic has exacerbated existing inequality in the Indian economy, with marginalized communities suffering the most.
- Fiscal stress: The government is facing significant fiscal stress due to reduced tax revenue and higher spending on healthcare and pandemic relief measures.
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a year ago