New Delhi: The coronavirus pandemic in the country has put a halt on the industrial sector. The loss of business amid the lockdown has triggered revenue cuts, causing a spike in lay-offs.
According to a new report by international management consulting firm Arthur D Little, the COVID-19 crisis is likely to push 120 million Indians into poverty leaving as many as 135 million unemployed.
The reason for this unprecedented situation is the reduced per-capita income, causing a decline in the country’s Gross Development Product (GDP), the report said.
“Given the continued rise of COVID-19 cases, we believe that a W-shaped recovery is the most likely scenario for India. This implies a GDP contraction of 10.8 per cent in FY 2020-21 and GDP growth of 0.8 per cent in FY 2021-22,” ET quoted the report.
While the report praised the central government’s efforts to boost the economy, it predicted an opportunity loss of USD 1 trillion for the Indian economy.
For reviving the economy, the report emphasized on stimulating the small companies, assistance to the most vulnerable, besides focusing on the rural economy.
“India should focus on ‘Make in India 2.0’ targeting global investments. It needs to strengthen its banking and financial system to bring the economy back on track,” the report added.