InvestorQ : As we look back at the last Samvat Year 2076, what do you think were the major concerns for the Indian economy?
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As we look back at the last Samvat Year 2076, what do you think were the major concerns for the Indian economy?

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Dilmini Mercia answered.
2 months ago
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In many ways, the year that just concluded was both forgettable and unforgettable. Obviously, the big bad news was on the COVID front, which has dominated the year. Even the rally in Nifty and Sensex hides a story of tumult and volatility in the markets.

In short, all **** appeared to break lose once the markets digested the significance of the COVID pandemic. China announced the pandemic only in late Dec-19, but the effect was seen rapidly. The biggest concern of course, is the million plus lives lost.

There is also the worry in the last year about trillions of dollars vanished in the form of lost production, idle capacity and loss of productivity. In addition, the job losses have been a reality across all world economies and India has seen a major jobs crisis out here.

The big negative impact was felt on GDP growth. India saw negative GDP growth for the first time in 40 years in Jun-20 quarter. Economists and analysts project GDP in India to contract 8-9% in FY21. That would virtually put India back economically by 3-4 years.

But the worst crisis was the millions of lost jobs, savings eaten and queues of workers walking hundreds of miles to reach their home towns. Apart from the humanitarian crisis, sectors like retail, tourism, hotels, entertainment and aviation got structurally knocked.

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