21-day Lockdown Costs India Economy A Rs 8.76 Lakh Crore Loss, 10 Millions People Might Lose Their Jobs

More than 60 years after the independence in 1947, India is now dealing with the greatest economic crisis due to the coronavirus outbreak and nationwide lockdown. The 21-day lockdown, which is aimed to break the coronavirus chain, came at a price. Recently, some leading economics experts showed out that the Indian economy might suffer from an Rs 8.76 lakh crore loss due to the lockdown. 

According to PM Modi’s official announcement on the nationwide lockdown, all non-essential services will be closed for the next 3 weeks. It means that almost all businesses except electricity, water supply and gas will be entirely shut. Meanwhile, the economic loss in the agriculture sector is impossible to estimate exactly due to seasonal properties. 

It takes weeks for the economy to recover

While the lockdown only lasts 21 days, it will take more time for the whole economy to get back to the usual state. Although different sectors have different circles, we will need at least one more week to set up the organization again as there are so many affected factors including human resources, capital, and materials. It means that the impact of the nationwide lockdown on India's economy will last up to 28 days.    

Check out the details of India's economic disruptions due to coronavirus isolation in the table below.

Financial and tourist sectors are the most affected

According to the table given by Business Today India, financial, real estate and professional service and the most affected sector with Rs 2.81 lakh crore loss. This is followed by service sectors including tourism, transportation, and communication with Rs 2.42 lakh crore. Meanwhile, mining and quarrying are least affected with only Rs 0.31 lakh crore in terms of financial loss.

According to the Economy Forecast of Dun & Bradstreet's, the country is likely to face up with a great recession and is less likely to stay ‘isolated’ from the global downturn. It is also estimated that more than 10 million workers will be unemployed as many companies are going bankrupt.

>>> Read more on Starbiz:

• Coronavirus: Documents Needed When Going Out During Lockdown
• India Lockdown: I Know The Risk Of Coronavirus, But I Can’t See My Children Hungry