As India fights the second wave of coronavirus, the economy of the country is already on a downward slope. With the new lockdown-like curbs in Maharashtra, it is estimated that India will see losses of 40,000 crores ($5.4 billion) during the current financial year that ends in March 2022. Maharashtra is the richest state in the country and contributes around 15% to India’s total GDP. Taking into account the latest economic setback, India’s GDP is expected to dip this financial year.
Maharashtra Lockdown- A Bad News For Indian Economy
As Maharashtra reels under a fresh wave of Covid-19 outbreak, the Maharashtra government has decided to shut down restaurants, malls, cinema halls, and salons till April 30. Only essential services such as grocery stores, medical shops, and banks are allowed to function in the state. A complete lockdown has been imposed, which means people will not step out of their homes except for emergency purposes.
The Limited Five-Day Model Will Badly Hit Indian Economy
The limited five-day week model would come in the way of the operations of the non-service sector. This five-day model will badly hit the non-service sectors like entertainment, hospitality, and discretionary spending, among others. Hotel Sector In India Shrinks By 47%; Worst-Hit Segment Of The Economy.
Hospitality Is The Worst Affected Sector
With the lockdown and curfew, one of the worst-effected sectors is likely to be hospitality. The measures to close dining out and operate only for takeaway and delivery will leave no room for the hospitality sectors to stay afloat. We really hope that the government acknowledges the loss and helps the hospitality industry from collapsing. Here are 5 Popular Mumbai Restaurants That Have Shut Down.
The Maharastra weekend lockdown and night curfew spells bad news for the overall Indian economy, which is still recovering from the effects of the 2020 lockdown. India’s economy is expected to shrink by 7.5% in the last financial year.