Assessing the Economic Impact of COVID-19

COVID-19 is a modified form of SARS-CoV-2 that turned into a severe contagious pandemic, and it has been influencing different circumstances in the entire world today. It has extensively shown a negative impact and affected the current economic conditions of all nations globally due to the implementation of lockdown. The influence of COVID-19 is reflected in diverse sectors, for example, primary sectors (education and agricultural sectors), secondary sectors (manufacturing industries, automobile industry, textile industry and chemical industries, electronic industry, solar power industry), and service-based sectors, such as the tourism, healthcare, IT and Banking, Financial Services, and Insurance (BFSI) sector, entertainment industry, and retail since March 2020. This chapter specifically emphasizes the medical crisis that affected the national economic conditions, start-up businesses, and unemployment, which is the biggest cause of the financial crisis that has caused significant variations in the Indian gross domestic product (GDP) during the pre and post-pandemic situations, and the correlation between inflation and unemployment in some countries (UK and India). Furthermore, the policies, plans of action to be adopted by the public and the government for the rapid restoration of normal financial conditions, challenges that will occur when recovering from the crisis, and future scope, will be mentioned. This chapter emphasizes the medical crisis that affected the national economic conditions, start-up businesses, and unemployment, which is the biggest cause of the financial crisis that has caused significant variations in the Indian gross domestic product during the pre and post-pandemic situations, and the correlation between inflation and unemployment in UK and India. Many governments across the world have introduced special relief packages to combat the crisis of COVID-19, such as the Indian Finance Minister introducing an INR 1.7 trillion package on March 26, 2021. Various countries had severe crises that showed a significant negative impact on the economic statistics. There was about a 70% of stock market loss, and decreased production of fossil fuel with an increment in the prices of crude and petroleum was observed. Comparisons between inflation and employment between India and UK, the decline in the stock market, effects on travel and tourism services, and actions taken by the governments, and the people are mentioned.