InvestorQ : Will the COVID-19 lockdown impact the income levels in India in the long run?
Arusha Ray made post

Will the COVID-19 lockdown impact the income levels in India in the long run?

Answer
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Moii Chavate answered.
3 months ago


This is a tad early because the real data will only be out after the lockdown is lifted and with a time lag. However, there are some hints coming from a report prepared by the SBI Research team.

The research team has concluded that the per capita income of India could actually fall by 5.4% in the current fiscal year 2021 from the current level of $2000.

In India 8 states that accounted for 47% of the overall India GDP, witnessed a sharp fall in growth. These include the wealthy states like Gujarat, Maharashtra and Delhi with higher than average per capital income. These states have been the worst impacted by the pandemic and that is going to hit per capita incomes, according to the SBI note.

According to the report, the richer states have been the worse impacted by the pandemic and that could clearly rub off on overall per capital income. India’s per capital income at $2000 is lower than most sub-Saharan economies and even Eastern Europe and Central Asia. That makes India vulnerable to a large scale income effect.