InvestorQ : What do you expect was the total cost of the lockdown that gets over on 14 April after India remained locked in for 21 days?
Arya Nanda made post

What do you expect was the total cost of the lockdown that gets over on 14 April after India remained locked in for 21 days?

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Deepa Salunkhe answered.
1 year ago
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Let me clarify that there is no confirmation of the lockdown being lifted on 14 April. In fact, it is very likely that the lockdown could be extended till the end of April as cases are still adding on in India. We will get the final picture only after the PM addresses the nation on 14 April morning. However, there have been some estimates of the costs that have been put out by the economists. In terms of estimated business loss, they are currently pegged at around Rs.8 trillion ($110 billion), although the actual cost in terms of opportunity losses could be much higher. This is only for the 21 days and we will have to be prepared for higher costs if the lockdown is extended. The biggest hit in sectoral terms was taken by sectors like transportation, hospitality, real estate, construction, entertainment, and retail activity etc. While one cannot look at costs in a health crisis, there is also a lag effect of such lockdowns that India needs to be familiar with. Such costs of a lockdown could persist for at least 2-3 quarters as we saw in the case of the demonetization exercise.

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