“The new crown epidemic may break the dream of India’s great power.” India’s “Economic Times” reported on the 5th that the epidemic is having a serious impact on the Indian economy. According to statistics from the Indian health department, as of the morning of the 6th local time, 90,633 newly diagnosed cases of new coronary pneumonia were added in India in the past day, a record high, with a total of 4.11 million confirmed cases and 70,626 deaths. India is about to surpass Brazil to become the country with the second highest number of confirmed cases in the world after the United States.
“India is suffering a unique four-strike.” According to Bloomberg News reported on the 6th, affected by the epidemic and national lockdown measures, India’s GDP in the second quarter of this year fell sharply by 23.9% year-on-year. Severe quarterly economic contraction; secondly, due to supply constraints, experts predict that India’s inflation rate may have reached 7%; in addition, the substantial decline in growth potential and the poor effect of tax system reform have had a negative impact on the Indian economy. Barclays Bank India Chief Economist Rahul Bajoria said that India’s economic performance in the third quarter may continue to shrink severely.
The “Economic Times” cited the Gujarat city of Surat as an example. The local industry has been in a slump since the outbreak, and the production capacity of textile factories after the resumption of work is only 1/10 of that before the epidemic. The consumer market has also fallen into a downturn because of the sharp decline in people’s income. Ashish Gujarati, head of the Surat Textile Industry Association, pointed to a chimney in the industrial park during an interview and said, “Did you see it? Before the epidemic, there was still smoke coming out there.” He said that India had the opportunity to become a “superpower” on par with China before, but the epidemic is hitting the economy of Surat and other cities across the country. “India’s economic decline is faster than any other economy in the world.” India’s dream is shattered.”
According to the report, the low-income community in New Delhi, the capital of India, is currently almost empty, but a few years ago when India’s economic growth rate was as high as 9%, it was a “hard to find a house” scene. Jayaty Ghosh, professor of economics at Nehru University, believes that the decline in people’s spending power will drag down market development, which in turn will affect foreign investors’ enthusiasm for investment in India. Kashk Basu, former chief economist of the World Bank, said that India’s economic slowdown in the second quarter was due to the national blockade, but if the spread of the epidemic was prevented, “then this sacrifice may be worthwhile, but unfortunately The epidemic has not been controlled.”