The economic impact of the 2019–20 coronavirus pandemic in India has been hugely disruptive. World Bank and credit rating agencies have downgraded India’s growth for the fiscal year 2021 with the lowest figures India has seen in three decades since India’s economic liberalization in the 1990s.
The impact of Covid-19 on Indian Economy:
Up to 87% of businesses in India are affected due to COVID-19. Various businesses such as IT-ITES, hotels, Airlines, Manufacturing, Retail industries, etc. are cutting salaries and laying off employees.
Within a month unemployment rose from 8.7% on 15 March to 23.8% on 8 April. More than 45% of households across the nation have reported an income drop as compared to the previous year.
Here are the few ways to deal regarding the financial crisis on an individual level to overcome the crisis
Keep money handy — Don’t deny the possibility of losing the job. Keep the expenses at the minimum as if it is an emergency.
Prepare to become redundant/underpaid — When no one is producing goods or services, jobs are next on the line. Prepare mentally for a period of possible unemployment.
Shun debt like a disease- Do not borrow, even from friends and relatives. Do not use a credit card, switch to the debit card until this crisis is over.
Make a mental list of assets you can liquidate — Even if it is at a loss and a lower price you can liquidate your asset it could be gold etc.
Be willing to trade off some long term for the short term — If you are faced with a loss of income and have to access it, do that instead of borrowing.
Do not fall for traps and tricks — Real estate and investment advisors will tell you that it is the best time to buy property cheap or shares. Don’t trust their stories
Keep yourself open to new opportunities — Do something in addition to what you are already doing. A crisis is a time to figure out what is needed in a changing environment.
Keep questioning your purpose and your contribution- Be sure you are solving problems, saving resources, enhancing efficiency in as many little ways as you can.
