Letter to BS: India battles low GDP growth\, unemployment and Coronavirus

Letter to BS: India battles low GDP growth, unemployment and Coronavirus

The unemployment rate in February 2020, increased from 7.16% in January to 7.78% while GDP growth declined to 4.7% in Q3FY20. If that was not enough coronavirus is disrupting the supply chain now

Business Standard 

Tourist wear protective masks in wake of the deadly novel coronavirus, at Taj Mahal, in Agra
Tourist wear protective masks in wake of the deadly novel coronavirus, at Taj Mahal, in Agra

Among a low GDP growth rate, the effects of coronavirus and a high unemployment rate, it is tough to identify which is more problematic for the Indian economy. According to data released by the Centre for Monitoring Indian Economy on March 2, the unemployment rate in February 2020, increased from 7.16 per cent in January to 7.78 per cent, highest since October 2019. The report also showed the hike in the unemployment rate in rural areas from 5.97 per cent in January to 7.37 per cent in Fe­bruary. Also the GDP growth rate declined from 7.1 per cent in Q1 to 4.7 per cent in Q3 of the 2019-20 fiscal year. If that was not enough, coronavirus is disrupting the supply chain of the critical items from China and increasing the inflationary pressure.

Sumi Goswami, Agra

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First Published: Tue, March 03 2020. 22:02 IST