View source for COVID-19 recession in India

{{short description|Impact of the COVID-19 pandemic on India's economy}}
{{Use Indian English|date=April 2020}}
{{Use dmy dates|date=May 2020}}
{{Update|type=|date=November 2020|reason=Events and situation in October and November needs updating. Atmanirbhar Bharat Abhiyan 2.0 and 3.0 needs updating. Diagrams need updating.}}{{main|COVID-19 pandemic in India|Financial market impact of the COVID-19 pandemic}}
{{Infobox event
 |title=Economic impact of the COVID-19 pandemic in India
 |type=[[Global recession]]
 |image=IMF World Economic Outlook January 2021 Real GDP growth rate (map).svg
 |caption=Map showing [[List of countries by real GDP growth rate|real GDP growth rates]] in 2020, as projected by the [[IMF]].
 |cause=[[COVID-19 pandemic]]-induced market instability and lockdown
 |date=March 2020 – present
 |outcome=

|blank_label=Total Economic Stimulus|blank_data={{INRConvert|29.87|lc|lk=on|year=2020}} [15% of national GDP] <br>(uptil 31 October 2020)|image_size=300px|blank1_label=Impact|blank1_data=* Largest GDP contraction ever in Q2 (April–June) FY2020–2021 at -24%
* Sharp rise in unemployment
* Stress on supply chains
* Decrease in government income
* Collapse of the tourism industry
* Collapse of the [[hospitality industry]]
* Reduced consumer activity
* Plunge in fuel consumption. Rise in LPG sales.
* Trade tensions with China}}

The '''economic impact of the 2020 coronavirus pandemic in India''' has been largely disruptive. India's growth in the fourth quarter of the [[fiscal year]] 2020 went down to 3.1% according to the [[Ministry of Statistics and Programme Implementation|Ministry of Statistics]]. The [[Chief Economic Advisor to the Government of India|Chief Economic Adviser to the Government of India]] said that this drop is mainly due to the coronavirus pandemic effect on the Indian economy. Notably India had also been witnessing a pre-pandemic slowdown, and according to the [[World Bank]], the current pandemic has "magnified pre-existing risks to India's economic outlook".

The World Bank and [[Credit rating agency|rating agencies]] had initially revised India's growth for FY2021 with the lowest figures India has seen in three decades since India's [[Economic liberalisation in India|economic liberalization in the 1990s]]. However, after the announcement of the economic package in mid-May, India's GDP estimates were downgraded even more to negative figures, signalling a deep recession. (The ratings of over 30 countries have been downgraded during this period.) On 26 May, [[CRISIL]] announced that this will perhaps be India's worst recession since independence. [[State Bank of India]] research estimates a contraction of over 40% in the GDP in Q1 The contraction will not be uniform, rather it will differ according to various parameters such as state and sector. On 1 September 2020, the [[Ministry of Statistics and Programme Implementation|Ministry of Statistics]] released the GDP figures for Q1 (April to June) FY21, which showed a contraction of 24% as compared to the same period the year before.

According to [[Nomura Holdings|Nomura]] India Business Resumption Index economic activity fell from 82.9 on 22 March to 44.7 on 26 April. By 13 September 2020 economic activity was nearly back to pre-lockdown.<ref name=":44">{{Cite news|date=15 September 2020|title=India's economic activity almost at pre-lockdown levels but Covid looms: Nomura|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/economy-picks-up-pace-in-sept-but-covid-looms/articleshow/78116216.cms|access-date=2020-09-15}}</ref> Unemployment rose from 6.7% on 15 March to 26% on 19 April and then back down to pre-lockdown levels by mid-June.<ref name=":34">{{cite web|last1=Vyas|first1=Mahesh|date=21 April 2020|title=Unemployment rate touches 26%|url=https://www.cmie.com/kommon/bin/sr.php?kall=warticle&dt=2020-04-21%2010:40:01&msec=873|access-date=24 April 2020|website=Centre for Monitoring Indian Economy (CMIE)}}</ref><ref name=":58">{{Cite news|last=Sharma|first=Yogima Seth|date=2020-06-24|title=Unemployment rate falls to pre-lockdown level: CMIE|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/unemployment-rate-falls-to-pre-lockdown-level-cmie/articleshow/76528571.cms|access-date=2020-06-24}}</ref> During the lockdown, an estimated 14 crore (140&nbsp;million) people lost employment while salaries were cut for many others.<ref name=":34" /><ref name=":2">{{Cite news|last1=Goyal|first1=Malini|url=https://economictimes.indiatimes.com/news/economy/finance/covid-19-crisis-how-the-deadly-virus-hints-at-a-looming-financial-crisis/articleshow/74752200.cms|title=Covid-19: How the deadly virus hints at a looming financial crisis|date=22 March 2020|work=The Economic Times|access-date=23 March 2020}}</ref> More than 45% of households across the nation have reported an income drop as compared to the previous year.<ref name=":35">{{cite web|url=https://scroll.in/article/959756/podcast-how-has-indias-lockdown-impacted-unemployment-rates-and-income-levels|title=Podcast: How has India's lockdown impacted unemployment rates and income levels?|last1=Research|first1=Centre for Policy|website=Scroll.in|access-date=24 April 2020}}</ref> The [[Indian economy]] was expected to lose over {{INRConvert|32000|c|lk=on|year=2020}} every day during the [[COVID-19 lockdown in India|first 21-days of complete lockdown]], which was declared following the [[COVID-19 pandemic in India|coronavirus outbreak]].<ref name=":23">{{cite web|url=https://www.thehindubusinessline.com/economy/covid-19-lockdown-estimated-to-cost-india-45-billion-a-day-acuit-ratings/article31235264.ece|title=Covid-19 lockdown estimated to cost India $4.5&nbsp;billion a day: Acuité Ratings|date=2 April 2020|website=Business Line|access-date=11 April 2020}}</ref><ref name=":24">{{cite web|title=Experts peg India's cost of coronavirus lockdown at USD 120 bn|url=https://www.thehindubusinessline.com/economy/experts-peg-indias-cost-of-coronavirus-lockdown-at-usd-120-bn/article31160115.ece|last=PTI|date=25 March 2020|website=The Hindu @businessline|access-date=25 March 2020}}</ref> Under complete lockdown, less than a quarter of India's $2.8&nbsp;trillion economic movement was functional.<ref>{{cite web|url=https://www.businessinsider.in/policy/economy/news/lockdown-relaxation-more-than-half-of-indian-economy-may-reopen-from-monday-april-20/articleshow/75220299.cms|title=Lockdown relaxation⁠— more than half of India's economy may reopen from Monday, says Nomura|website=Business Insider|access-date=18 April 2020}}</ref> Up to 53% of businesses in the country were projected to be significantly affected.<ref name=":4">{{cite web|url=https://www.livemint.com/companies/news/coronavirus-impact-indian-industry-seeks-relief-measures-to-aid-economy-11584904435575.html|title=Coronavirus impact: Indian industry seeks relief measures to aid economy|last=Biman. Mukherji|date=23 March 2020|website=Livemint|access-date=23 March 2020}}</ref> [[Supply chain]]s have been put under stress with the lockdown restrictions in place; initially, there was a lack of clarity in streamlining what an "essential" is and what is not.<ref name="Chaudhry">{{cite web|url=https://www.thehindubusinessline.com/economy/agri-business/covid-19-puts-indias-food-supply-chain-to-a-stress-test/article31173973.ece|title=Covid-19 puts India's food supply chain to a stress-test|last1=Chaudhry|first1=Siraj A.|date=26 March 2020|website=The Hindu @businessline|access-date=26 March 2020}}</ref> Those in the informal sectors and daily wage groups have been at the most risk.<ref>{{cite web|url=https://www.livemint.com/news/india/136-million-jobs-at-risk-in-post-corona-india-11585584169192.html|title=136&nbsp;million jobs at risk in post-corona India|last1=Das|first1=Goutam|date=30 March 2020|website=Livemint|access-date=2 April 2020}}</ref> A large number of farmers around the country who grow [[Perishable food|perishables]] also faced uncertainty.<ref name="Chaudhry" /> [[File:Vendor of greens.jpg|thumb|Vendor of greens, essential supply chains and logistics. Life under lockdown. Bangalore spring 2020.]]Major companies in India such as [[Larsen & Toubro]], [[Bharat Forge]], [[UltraTech Cement]], [[Grasim Industries]], [[Aditya Birla Group]], [[BHEL]] and [[Tata Motors]] have temporarily suspended or significantly reduced operations. Young startups have been impacted as [[Venture capital financing|funding]] has fallen.<ref name=":15">{{cite web|url=https://www.outlookindia.com/newsscroll/young-indian-startups-hit-as-investors-get-cautious/1787866|title=Young Indian startups hit as investors get cautious|date=1 April 2020|website=Outlook India|others=IANS|access-date=1 April 2020}}</ref><ref name=":16">{{cite web|url=https://inc42.com/datalab/pandemic-impacts-funding-prospects-for-startups-after-slow-q1-2020|title=Covid-19 Pandemic Spoils Indian Startup Funding Party, Growth Stage Worst Hit in Q1 2020|last1=Singh|first1=Sandeep|date=1 April 2020|website=Inc42 Media|access-date=1 April 2020}}</ref> Fast-moving consumer goods companies in the country have significantly reduced operations and are focusing on essentials. Stock markets in [[India]] posted their worst loses in history on 23 March 2020.<ref name=":3">{{cite web|url=https://indianexpress.com/article/business/market/bse-sensex-nse-nifty-stock-market-live-updates-coronavirus-global-markets-6327415/|title=Stock markets post worst losses in history; Sensex crashes 3,935 points amid coronavirus lockdown|date=23 March 2020|website=The Indian Express|access-date=23 March 2020}}</ref> However, on 25 March, one day after a complete 21-day lockdown was announced by the Prime Minister, [[SENSEX]] and [[NIFTY 50|NIFTY]] posted their biggest gains in 11 years.<ref name=":11">{{Cite news|last1=Shah|first1=Ami|url=https://economictimes.indiatimes.com/markets/stocks/news/sensex-logs-biggest-one-day-gain-in-11-years-investors-richer-by-rs-4-7-lakh-crore/articleshow/74810933.cms|title=Sensex posts biggest gain in 11 years: Investors richer by Rs 4.7 lakh crore|date=25 March 2020|work=The Economic Times|access-date=25 March 2020}}</ref>
[[File:Indices S&P BSE 500 (2015 to 2020).png|thumb|220x220px|Indices: S&P [[BSE 500]] (January 2015 to November 2020). Blue highlight reflects COVID-19 period (taken to start from March 2020 as per first lockdown).|alt=]]The [[Government of India]] announced a variety of measures to tackle the situation, from [[food security]] and extra funds for healthcare and for the states, to sector related incentives and tax deadline extensions. On 26 March a number of economic relief measures for the poor were announced totaling over {{INRConvert|170000|c|lk=on|year=2020}}. The next day the [[Reserve Bank of India]] also announced a number of measures which would make available {{INRConvert|374000|c|lk=on|year=2020}} to the country's financial system. The World Bank and [[Asian Development Bank]] approved support to India to tackle the coronavirus pandemic.<ref name=":50" />

The different phases of India's lockdown up to the "first unlock" on 1 June had varying degrees of the opening of the economy. On 17 April, the [[RBI Governor]] announced more measures to counter the economic impact of the pandemic including {{INRConvert|50000|c|lk=on|year=2020}} special finance to [[National Bank for Agriculture and Rural Development|NABARD]], [[Small Industries Development Bank of India|SIDBI]], and [[National Housing Bank|NHB]].<ref name=":30">{{cite web|url=https://www.financialexpress.com/economy/rbi-governor-shaktikanta-das-live-news-updates-fiscal-stimulus-monetary-policy-economic-relief-coronavirus/1931155/|title=RBI Governor Highlights: Shaktikanta Das cuts reverse repo; pumps in money, liquidity; eases rules for banks, NBFCs|date=17 April 2020|website=The Financial Express|access-date=17 April 2020}}</ref> On 18 April, to protect Indian companies during the pandemic, the government changed [[Foreign direct investment in India|India's foreign direct investment policy]]. The [[Department of Military Affairs]] put on hold all capital acquisitions for the beginning of the financial year. The [[Chief of Defence Staff (India)|Chief of Defence Staff]] has announced that India should minimize costly defense imports and give a chance to domestic production; also making sure not to "misrepresent operational requirements".<ref name=":63" /><ref name=":64" />

On 12 May the Prime Minister announced an overall economic stimulus package worth {{INRConvert|20|lc|lk=on|year=2020}},10% of India's GDP, with emphasis on India as a self-reliant nation. In December 2020, a [[Right to Information Act, 2005|Right to Information]] petition revealed that less than 10% of this stimulus had been actually disbursed.<ref name=":66">{{Cite news|title=Rs 20 lakh-crore pandemic package: Barely 10% disbursed, says RTI|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/finance/rs-20-lakh-crore-pandemic-package-barely-10-disbursed-says-rti/articleshow/79703689.cms?utm_source=newsletter&utm_medium=email&utm_campaign=NewsDigest&utm_content=todayhighlights&utm_term=4&ncode=6be610441d2ae972cd29b752110f7bc5ac59cf341a094c32e7bd9b2c3806ca7216ed80d76b9d498ad2cf71b0f49661af3e45cb7959b9fe58cfa0ca4842e8e5f1bc1da39015054cc5d2962a0a54678ace|access-date=2020-12-14}}</ref>  During the next five days the Finance Minister announced the details of the economic package. Two days later the Cabinet cleared a number of proposals in the economic package including a free food grains package. By 2 July 2020, a number of economic indicators showed signs of rebound and recovery. On 24 July the [[Finance Secretary of India]] said the economy is showing signs of recovery at a faster rate than anticipated, while the [[Economic Affairs Secretary]] said that he expects a [[Recession shapes|v-shaped]] recovery for India. In July the [[Union Council of Ministers]] passed the [[National Education Policy 2020|National Educational Policy 2020]] aimed at strengthening the economy. On 12 October and 12 November, the government announced two more economic stimulus package, bringing the total economic stimulus to {{INRConvert|29.87|lc|lk=on|year=2020}} — 15% of national GDP — uptil 31 October 2020.<ref name=":65" />

{{COVID-19 pandemic sidebar}}

== Government actions ==

=== Government philosophy ===
{{Quote box
| quote = "From the economy's point of view, the lockdown undoubtedly looks costly right now, but compared to the lives of Indian citizens, it is nothing." ''(translation, original in Hindi)''
| author = Prime Minister [[Narendra Modi|Modi]], speech to the nation, 10 am, 14 April 2020
| source = <ref>{{cite news |title=Economic cost of lockdown is nothing compared to people's lives: PM Modi |url=https://www.business-standard.com/article/news-ani/economic-cost-of-lockdown-is-nothing-compared-to-people-s-lives-pm-modi-120041400359_1.html |access-date=14 April 2020 |work=Business Standard |agency=ANI |date=14 April 2020}}</ref><ref>{{cite news |title=Lockdown hurts economy but saving life is more important: PM Modi |url=https://www.indiatoday.in/india/story/lockdown-hurts-economy-but-saving-lives-is-more-important-pm-modi-1666725-2020-04-14 |access-date=14 April 2020 |work=India Today |date=14 April 2020}}</ref>
| width = 300px
| fontsize = 105%
}}Globally in a poll by the 'Edelman Trust Barometer', out of the 13,200+ people polled, 67% agreed that "The government's highest priority should be saving as many lives as possible even if it means the economy will recover more slowly"; that is, life should come before livelihood.<ref name=":40">{{Cite web|title=How is the world dealing with lockdown? This poll has captured the public's mood|url=https://www.weforum.org/agenda/2020/05/coronavirus-health-economy-global-survey/|last1=John|first1=Mark|date=6 May 2020|website=World Economic Forum|access-date=11 May 2020|quote=''67% of the 13,200-plus people interviewed agreed that: "The government's highest priority should be saving as many lives as possible even if it means the economy will recover more slowly."''}}</ref> For India, the poll showed a ratio of 64% to 36%, where 64% of the people agreed that saving as many lives as possible was a priority, and 36% agreed that saving jobs and restarting the economy was the priority.<ref name=":40" />

In India the life versus livelihood debate also played out, with the government first announcing that life would be prioritized over livelihood, which later changed to an equal importance being given to life and livelihood.<ref name=":29" /><ref name=":39" /> By mid-May the center was keen to resume economic activities, while the Chief Ministers had mixed reactions.<ref name=":43">{{Cite news|last1=Sharma|first1=Aman|date=12 May 2020|title=Prime Minister Narendra Modi bats for unlocking economy, CMs divided|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/pm-narendra-modi-bats-for-unlocking-economy-cms-divided/articleshow/75674126.cms|access-date=12 May 2020}}</ref>

Prime Minister Modi announced the first 21 days of India's lockdown on 24 March. During this address to the nation he said, "''Jaan hai toh jahaan hai''" ({{Translation|Only if there is life there will be livelihood}}).<ref name=":29">{{cite web|title=Modi says 'jaan bhi jahaan bhi', signals a shift in India's coronavirus playbook|url=https://www.livemint.com/news/india/modi-says-jaan-bhi-jahaan-bhi-signals-a-shift-in-india-s-coronavirus-playbook-11586606578037.html|last1=Khanna|first1=Utpal Bhaskar, Anuja, Pretika|date=11 April 2020|website=Livemint|access-date=16 April 2020}}</ref><ref name=":39">{{cite web|title=Opinion {{!}} New Delhi revisits the lives versus livelihood debate|url=https://www.livemint.com/opinion/columns/new-delhi-revisits-the-lives-versus-livelihood-debate-11586710892651.html|last1=Padmanabhan|first1=Anil|date=12 April 2020|website=Livemint|access-date=16 April 2020}}</ref> On 11 April, in a meeting with the Chief Minister's of India, the Prime Minister said "Our mantra earlier was ''jaan hai toh jahaan hai'' but now it is ''jaan bhi jahaan bhi'' ({{Translation|Both, lives and livelihood matter equally}})."<ref name=":29" /><ref>{{cite web|title=PM Modi's meeting with chief ministers: Five things to watch out for|url=https://www.livemint.com/news/india/pm-modi-s-meeting-with-chief-ministers-five-things-to-watch-out-for-11586576286173.html|last1=Varma, Anuja|first1=Gyan|date=11 April 2020|website=Livemint|access-date=16 April 2020}}</ref> On 14 April, another address to the nation was made by Modi in which he extended the lockdown, with adjustments, to 3 May.<ref>{{cite web|title=No matter how you look at it, India's lockdown-2 can cost as many lives as it will save|url=https://theprint.in/opinion/indias-lockdown-2-can-cost-as-many-lives-as-it-saves/402269/|last1=Yadav|first1=Yogendra|date=15 April 2020|website=ThePrint|access-date=16 April 2020}}</ref> In the Prime Minister's fifth meeting with the Chief Ministers on 11 May, the Prime Minister said that Indians must prepare for the post coronavirus pandemic world, just as the world changed after the [[world war]]s.<ref name=":41">{{Cite web|title=''Slowly increase public activities'', PM throws challenge to CMs (Ld)|url=https://www.outlookindia.com/newsscroll/slowly-increase-public-activities-pm-throws-challenge-to-cms-ld/1831407|date=11 May 2020|website=Outlook India|others=IANS|access-date=12 May 2020}}</ref><ref>{{Cite web|title=Prime Minister Interacts with the Chief Ministers of all the states and UTs|url=http://pib.gov.in/Pressreleaseshare.aspx?PRID=1623160|date=11 May 2020|website=pib.gov.in|access-date=12 May 2020}}</ref> During the meeting Modi said "''Jan se lekar jag tak''" ({{Translation|From an individual to the whole of humanity}}) would be the new principle and way of life.<ref name=":41" /><ref name=":42">{{Cite web|title=On exiting Covid-19 lockdown 3.0, PM Modi asks chief ministers to come up with blueprint|url=https://www.hindustantimes.com/india-news/on-exiting-covid-19-lockdown-3-0-pm-modi-asks-chief-ministers-to-come-up-with-blueprint/story-ivf8UZkSRbhmjRuswuRr5I.html|last1=Gupta|first1=Shishir|date=11 May 2020|website=Hindustan Times|access-date=12 May 2020}}</ref> On 12 May, the Prime Minister addressed the nation saying that the coronavirus pandemic was an opportunity for India to increase self-reliance. He proposed the ''[[Atmanirbhar Bharat]] Abhiyan'' (Self-reliant India Mission) economic package.<ref>{{Cite web|title=PM Modi's Atmanirbhar Bharat Abhiyan economic package: Here is the fine print|url=https://indianexpress.com/article/explained/narendra-modi-coronavirus-economic-package-india-self-reliance-6406939/|last1=Misra|first1=Udit|date=14 May 2020|website=The Indian Express|access-date=17 May 2020}}</ref>

=== Timeline ===
* On '''19 March''' the formation of the COVID-19 Economic Response Task Force was announced by Prime Minister [[Narendra Modi]] during his live address to the nation.<ref>{{cite web|title=Covid 19 Economic Task Force: Government forms Covid-19 economic response task force, says PM Modi|url=https://timesofindia.indiatimes.com/business/india-business/government-forms-covid-19-economic-response-task-force-pm-modi/articleshow/74716284.cms|date=19 March 2020|website=The Times of India|access-date=20 March 2020}}</ref><ref>{{cite web|title=COVID-19: Task Force to deal with economic challenges {{!}} DD News|url=http://ddnews.gov.in/national/covid-19-task-force-deal-economic-challenges|website=ddnews.gov.in|access-date=20 March 2020}}</ref><ref>{{Cite news|date=20 March 2020|title=PM Narendra Modi forms economic response task force, calls for 'Janata Curfew'|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/pm-narendra-modi-forms-economic-response-task-force-calls-for-janata-curfew/articleshow/74715013.cms?from=mdr|access-date=20 March 2020}}</ref> The task force was led by the finance minister [[Nirmala Sitharaman]].<ref>{{cite web|title=Coronavirus in India: Economic task force yet to be formed; no decision on relief package|url=https://www.businesstoday.in/current/economy-politics/coronavirus-impact-fm-led-economic-task-force-takes-stock-of-key-ministries/story/398804.html|date=20 March 2020|website=Business Today|access-date=20 March 2020}}</ref> Though not formally constituted or no official date for relief packages being made, the consultation process with concerned parties had begun immediately.<ref>{{cite web|title=Coronavirus crisis: Economic package to be announced soon, says Sitharaman|url=https://www.livemint.com/politics/policy/coronavirus-crisis-economic-package-to-be-announced-soon-says-sitharaman-11584722101953.html|date=20 March 2020|website=Livemint|others=PTI|access-date=21 March 2020}}</ref><ref name=":1">{{cite web|title=Subramanian Swamy writes to PM Modi over COVID-19, says economic relief package crucial|url=https://theprint.in/health/subramanian-swamy-writes-to-pm-modi-over-covid-19-says-economic-relief-package-crucial/385273/|last1=Nair|first1=Remya|date=21 March 2020|website=ThePrint|access-date=23 March 2020}}</ref> The [[Ministry of Finance (India)|Ministry of Finance]] immediately started consultations with the RBI and ministries to take stock of most affected sectors like aviation, hospitality, and MSMEs.<ref name=":1" />
* On '''21 March 2020''', the [[Union cabinet]] approved incentives worth {{INRConvert|40995|c|lk=on|year=2020}} for electronic manufacturing.<ref>{{cite web|url=https://www.bloombergquint.com/business/cabinet-approves-production-linked-incentives-for-electronics-manufacturing-firms-2|title=Cabinet Approves Production-Linked Incentives For Electronics Manufacturing Firms|website=BloombergQuint|others=PTI|access-date=23 March 2020}}</ref><ref>{{Cite news|last1=Phartiyal|first1=Sankalp|url=https://in.reuters.com/article/india-electronics-idINKBN2190JJ|title=India lays out $6&nbsp;billion roadmap to boost electronics manufacturing|date=22 March 2020|work=Reuters|access-date=23 March 2020}}</ref>
* Various state governments announced financial assistance for the poor in the unorganised sector. On '''21 March''' the [[Government of Uttar Pradesh|Uttar Pradesh government]] decided to give a direct money transfer of {{INRConvert|1000||lk=|year=2020}} to all daily wage laborers in the state<ref>{{cite news|url=https://m.economictimes.com/news/politics-and-nation/yogi-adityanath-announces-relief-measures-for-ups-daily-wage-earners/articleshow/74744711.cms|title=Yogi Adityanath announces relief measures for UP's daily wage earners|newspaper=The Economic Times|date=21 March 2020|last1=Gaur|first1=Vatsala}}</ref> and the following day [[Punjab]] announced {{INRConvert|3000||lk=|year=2020}} each for all registered construction workers in the state.<ref>{{cite news|url=https://timesofindia.indiatimes.com/city/chandigarh/coronavirus-rs-3000-relief-for-construction-workers-says-punjab-cm-amarinder-singh/articleshow/74754595.cms|title=Coronavirus: Rs 3,000 relief for construction workers, says Punjab CM Amarinder Singh|date=22 March 2020|work=The Times of India|access-date=22 March 2020|agency=TNN}}</ref> On '''23 March''' it was announced that Haryana labourers, street vendors and rickshaw pullers will be provided an assistance of ₹1,000 per week directly deposited into their bank accounts. [[Below Poverty Line]] families would be provided rations (including rice, wheat, mustard oil, sugar) free of cost for the month of April.<ref>{{cite web|url=https://www.hindustantimes.com/chandigarh/all-15-haryana-dists-locked-down-financial-support-announced-for-the-poor/story-yguH21C7I59Sj7G8oIweJL.html|title=All 15 Haryana dists locked down, financial support announced for the poor|date=23 March 2020|website=Hindustan Times|access-date=25 March 2020}}</ref>
* On '''24 March''' in his address to the nation, the Prime Minister announced a {{INRConvert|15000|c|lk=on|year=2020}} fund for the healthcare sector.<ref>{{cite web|url=https://theprint.in/india/pm-declares-21-day-full-lockdown-across-india-from-midnight-rs-15000-cr-to-fight-covid-19/387457/|title=PM declares 21-day full lockdown across India from midnight, Rs 15,000 cr to fight COVID-19|last1=Chandna|first1=Himani|last2=Basu|first2=Mohana|date=24 March 2020|website=ThePrint|access-date=25 March 2020}}</ref>
* On '''24 March''' the Finance Minister made a number of announcements related to the economy such as extending last dates for filing [[Goods and Services Tax (India)|GST]] returns and income tax returns.<ref>{{cite web|url=https://www.firstpost.com/health/finance-minister-nirmala-sitharaman-live-updates-coronavirus-outbreak-india-economic-package-announcement-media-briefing-news-today-8182241.html|title=FM Nirmala Sitharaman on Coronavirus Outbreak LIVE Updates: Firms with less than Rs 5 cr turnover, no interest, penalty, late fee on late GST return filing|website=Firstpost|access-date=24 March 2020}}</ref> The due dates for the Sabka Vishwas (Legacy Dispute Resolution) Scheme 2019, customs clearances and for compliance matters under the Customs Act and associated laws was extended to June 2020.<ref name=":10">{{cite web|url=https://mercomindia.com/finance-ministry-economic-relief-measures-coronavirus-outbreak/|title=Finance Ministry Announces Economic Relief Measures Amid Coronavirus Outbreak|last1=Parikh|first1=Anjana|date=24 March 2020|website=Mercom India|access-date=25 March 2020}}</ref>

==== Lockdown Phase 1 (25 March – 14 April) ====
* On '''25 March''' the [[Modi government]] announced the world's largest [[food security]] scheme for 800&nbsp;million people across the country.<ref name=":9">{{cite web|url=https://www.financialexpress.com/economy/modi-govts-largest-ration-subsidy-scheme-for-80-cr-indians-buy-rice-wheat-at-this-price/1909103/|title=Modi govt's largest ration subsidy scheme for 80 Cr Indians; check full details of govt plan|last1=Sharma|first1=Samrat|date=25 March 2020|website=The Financial Express|access-date=25 March 2020}}</ref> Cabinet Minister [[Prakash Javadekar]] made the announcement in a press conference that the ration would be 7&nbsp;kg every month (which would include wheat at a cost of {{INRConvert|2||lk=on|year=2020}} per kg and rice at  {{INRConvert|3||lk=on|year=2020}} per kg.)<ref name=":9" />
* On '''25 March''' the Uttar Pradesh government banned the manufacture and sale of [[pan masala]], stating in the order that "spitting pan masala can help in spreading Covid-19".<ref>{{cite web|url=https://www.livemint.com/news/india/up-govt-bans-manufacture-sale-of-pan-masala-to-fight-coronavirus-spread-11585140181755.html|title=UP govt bans manufacture, sale of pan masala to fight coronavirus spread|date=25 March 2020|website=Livemint|access-date=25 March 2020}}</ref> Following this, other states such as Andhra Pradesh, Rajasthan and Gujarat also banned spitting in public places.<ref>{{cite web|url=https://www.vice.com/en_in/article/pkev9m/gujarat-banned-spitting-to-stop-coronavirus|title=It Took Coronavirus for an Indian State to Ban Spitting in Public|last1=Solani|first1=Dhvani|date=16 March 2020|website=Vice|access-date=13 April 2020}}</ref><ref>{{Cite news|url=https://www.thehindu.com/news/national/other-states/coronavirus-groups-hail-ban-on-spitting-in-rajasthan/article31319937.ece|title=Coronavirus {{!}} Groups hail ban on spitting in Rajasthan|date=11 April 2020|work=The Hindu|access-date=13 April 2020|others=Special Correspondent|issn=0971-751X}}</ref><ref>{{cite web|url=https://www.newindianexpress.com/states/andhra-pradesh/2020/apr/12/andhra-pradesh-government-bans-spitting-in-public-places-2129100.html|title=Andhra Pradesh government bans spitting in public places|date=12 April 2020|website=The New Indian Express|access-date=13 April 2020}}</ref>
* On '''26 March''' the Finance Minister announced a number of economic relief measures for the poor.  hungry amidst the lockdown.<ref name=":12">{{Cite news|url=https://economictimes.indiatimes.com/news/economy/policy/fm-nirmala-sitharaman-announces-rs-1-7-lakh-crore-relief-package-for-poor/articleshow/74825054.cms|title=FM Nirmala Sitharaman announces Rs 1.7 lakh crore relief package for poor|date=26 March 2020|work=The Economic Times|access-date=26 March 2020}}</ref> [[Pradhan Mantri Ujjwala Yojana]] beneficiaries will get free cylinders for at least three months. This will benefit over 80&nbsp; million [[Below Poverty Line]] families.<ref name=":12" /><ref>{{cite web|url=https://www.indiatoday.in/business/story/finance-minister-nirmala-sitharaman-live-updates-economic-relief-package-india-coronavirus-1659912-2020-03-26|title=Coronavirus: FM Sitharaman announces package worth Rs 1,70,000 crore for poor, daily wagers|date=26 March 2020|website=India Today|access-date=26 March 2020}}</ref> The government would expedite payment of the first installment (₹2,000) due in 2020–21 in April itself under the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN). For the organised sector worker, the government will pay the [[Employees' Provident Fund Organisation|Employees' Provident Fund]] (EPF) contributions of both sides for 8&nbsp; million employees of small companies who earn up to ₹15,000 a month. The raise in the threshold from ₹100,000 to ₹10&nbsp; million for triggering insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) was done to help MSMEs. State governments were given various instructions and guidelines such as diverting district mineral funds for health needs relating to the pandemic.<ref name=":12" />
* On '''26 March''' India participated in the virtual 'Extraordinary G20 Leaders' Summit'. The G20 nations decided to inject over $5&nbsp;trillion into the global economy to counteract the pandemic's impacts. They agreed to work together, to strengthen the [[World Health Organization|World Health Organisation]], develop a vaccine and make it available. They decided to share timely and transparent information, materials for research and development and data. Besides expanding manufacturing capacity for medical supplies, they agreed to ensure smooth flows of critical supplies.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/international/business/g20-leaders-pledge-usd-5-trillion-united-response-to-coronavirus-crisis/articleshow/74835666.cms|title=G20 leaders pledge USD 5&nbsp;trillion, 'united' response to coronavirus crisis|date=26 March 2020|work=The Economic Times|access-date=5 April 2020}}</ref><ref>[https://g20.org/en/media/Documents/G20_Extraordinary%20G20%20Leaders%E2%80%99%20Summit_Statement_EN%20(3).pdf G20 Leaders' Statement, Extraordinary G20 Leaders' Summit Statement on COVID-19] {{Webarchive|url=https://web.archive.org/web/20200402142930/https://g20.org/en/media/Documents/G20_Extraordinary |date=2 April 2020 }}. Retrieved 5 April 2020.</ref>
* On '''27 March''' the [[Reserve Bank of India]] (RBI) Governor [[Shaktikanta Das]] made a number of announcements including EMIs being put on hold for three months and reducing [[Repo Rate]]s. Other measures introduced will make available a total {{INRConvert|374000|c|lk=on|year=2020}} to the country's financial system.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/economy/policy/rbi-joins-coronavirus-fight-rolls-out-big-bang-rate-move/articleshow/74840568.cms|title=RBI joins coronavirus fight with big-bang rate move, EMIs put on hold|date=27 March 2020|work=The Economic Times|access-date=27 March 2020}}</ref> [[Government of Delhi|Delhi government]] announced that from the 28th they will be providing free food to 400,000 every day.<ref>{{cite web|url=https://www.businesstoday.in/latest/trends/4-lakh-people-to-get-free-food-in-delhi-coronavirus-treatment-capacity-to-be-raised-to-1000-patients-per-day/story/399405.html|title=4 lakh people to get free food in Delhi, coronavirus treatment capacity to be raised to 1,000 patients per day|date=27 March 2020|website=Business Today|access-date=3 April 2020}}</ref> Over 500 hunger relief centres have been set by the Delhi government.<ref name=":20">{{cite web|url=https://timesofindia.indiatimes.com/city/delhi/govt-to-give-2-meals-a-day-to-4-lakh-people-says-kejriwal/articleshow/74855058.cms|title=Delhi lockdown: Over 500 hunger relief centres set up for 4 lakh people|last1=Mathur|first1=Atul|date=28 March 2020|website=The Times of India|access-date=3 April 2020}}</ref>
* On '''27 March''' the [[Rajasthan]] government decided to deduct the salaries of all its officers and employees from one to five days, with the money going into the Chief Ministers Fund.<ref>{{cite web|date=28 March 2020|title=Rajasthan: Salary cut for govt employees|url=https://timesofindia.indiatimes.com/city/jaipur/salary-cut-for-govt-employees/articleshow/74855516.cms|access-date=28 April 2020|website=The Times of India}}</ref>
* On '''28 March''' the Prime Minister launched a new fund called [[PM CARES fund]] for combating coronavirus-like situations.<ref>{{cite web|url=https://www.ndtv.com/india-news/pm-cares-pm-narendra-modi-announces-new-covid-19-fund-gets-rs-25-crore-from-akshay-kumar-2202275|title=PM Modi Announces New COVID-19 Fund, Gets Rs 25 Crore From Akshay Kumar|date=28 March 2020|editor-last=Roy|editor-first=Divyanshu Dutta|publisher=NDTV|access-date=29 March 2020}}</ref>
* On '''30 March''' it was announced that the UP government would transfer {{INRConvert|611|c|lk=on|year=2020}} to 2,715,000 workers under [[National Rural Employment Guarantee Act, 2005|MNREGA]] scheme.<ref>{{cite web|url=http://www.newsonair.com/Main-News-Details.aspx?title=Uttar-Pradesh-govt-to--transfer-Rs-611-crore-in-accounts-of-27.15-lakh-MNREGA-labourers-today&id=384172|title=Uttar Pradesh govt to transfer Rs 611 crore in accounts of 27.15 lakh MNREGA labourers today|date=30 March 2020|website=News on Air, All India Radio|access-date=30 March 2020}}</ref>
* On '''1 April''' the RBI announced more measures to deal with the economic fallout of COVID-19.<ref name=":14">{{Cite news|last1=Nayak|first1=Gayatri|url=https://economictimes.indiatimes.com/news/economy/policy/rbi-announces-more-measures-to-deal-with-economic-fallout-of-covid-19/articleshow/74926767.cms|title=RBI announces more measures to deal with economic fallout of COVID-19|date=1 April 2020|work=The Economic Times|access-date=1 April 2020}}</ref> [[Ways and means advances|WMA]] and short-term liquidity was increased to provide relief to state governments; exporters have also been granted some relief in the form of relaxed repatriation limits.<ref name=":14" />
* On '''2 April''' the [[World Bank]] approved US$1 billion emergency financing for India to tackle coronavirus labelled 'India COVID-19 Emergency Response and Health Systems Preparedness Project'.<ref name=":50">{{cite web|url=https://www.worldbank.org/en/news/press-release/2020/04/02/world-bank-fast-tracks-1-billion-covid-19-support-for-india|title=World Bank Fast-Tracks $1 Billion COVID-19 (Coronavirus) Support for India|publisher=World Bank|access-date=3 April 2020}}</ref><ref>{{cite web|url=https://www.livemint.com/news/india/world-bank-approves-1-bn-emergency-financing-for-india-to-tackle-coronavirus-11585852036102.html|title=World Bank approves $1 bn emergency financing for India to tackle coronavirus|date=3 April 2020|website=Livemint|access-date=3 April 2020}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/news/economy/indicators/covid-fight-is-a-balancing-act-for-worlds-economies-world-bank-india-chief/articleshow/74964031.cms|title=Covid fight is a balancing act for world's economies: World Bank India Chief|date=3 April 2020|work=The Economic Times|access-date=4 April 2020}}</ref>
* On '''3 April''' the central government released {{INRConvert|17287|c|lk=on|year=2020}} to different states to help combat coronavirus. The [[Ministry of Home Affairs (India)|Ministry of Home Affairs]] approved {{INRConvert|11092|c|lk=on|year=2020}} for states as relief under the State Disaster Risk Management Fund.<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/centre-grants-rs-17000cr-to-states-to-tackle-coronavirus-crisis/articleshow/74975956.cms|title=Centre grants Rs 17,000cr to states to tackle coronavirus crisis|date=4 April 2020|website=The Times of India|access-date=4 April 2020}}</ref>
* On '''6 April''' a 30% salary cut for one year was announced for the President, Vice President, Prime Minister, Governors, Members of Parliament and Ministers.<ref>{{cite web|url=https://www.thehindubusinessline.com/news/fighting-covid-19-pm-modi-ministers-mps-to-take-30-salary-cut-for-one-year/article31270019.ece|title=Fighting Covid-19: PM Modi, Ministers, MPs to take 30% salary cut for one year|date=6 April 2020|website=The Hindu @businessline|access-date=6 April 2020}}</ref><ref name=":21">{{cite web|url=https://www.hindustantimes.com/india-news/ordinance-passed-to-cut-salaries-of-mps-ministers-by-30-to-fund-covid-19-battle/story-2x9a6obfOxHc5HQ8rhS7FP.html|title=President, MPs, ministers take a pay cut for 1 year, say it is a message|date=6 April 2020|website=Hindustan Times|access-date=6 April 2020}}</ref> It was also decided to suspend the [[MPLADS]] for two years and transfer the money, about {{INRConvert|7900|c|lk=on|year=2020}}, into the [[Consolidated Fund of India]].<ref name=":21" />
* On '''8 April''' the Department of Expenditure, Finance Ministry, allowed states net market borrowings of {{INRConvert|320481|c|lk=on|year=2020}} between April to December.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/economy/finance/finance-ministry-allows-states-to-borrow-rs-3-20-lakh-crore-from-market/articleshow/75049770.cms|title=Finance Ministry allows states to borrow Rs 3.20 lakh crore from market|date=8 April 2020|work=The Economic Times|access-date=9 April 2020|agency=Press Trust of India}}</ref><ref>{{cite web|url=https://www.bloombergquint.com/economy-finance/india-borrowing-plan-states-allowed-to-borrow-rs-32-lakh-crore-in-april-december|title=States Allowed To Borrow Rs 3.2 Lakh Crore in April–December|last1=Ohri|first1=Nikunj|date=8 April 2020|website=BloombergQuint|access-date=9 April 2020}}</ref> {{INRConvert|3000|c|lk=on|year=2020}} of funds under the [[Pradhan Mantri Garib Kalyan Yojana|PM Garib Kalyan Yojana]] were given to over 20 million workers engaged in construction work by the various states and UTs.<ref>{{cite web|url=https://www.ndtv.com/india-news/coronavirus-lockdown-home-ministry-says-states-offer-rs-3-000-crore-funds-to-more-than-2-crore-const-2208530|title=Rs 3,000 Crore Given To 2 Crore Construction Workers By States: Centre|date=8 April 2020|publisher=NDTV|others=PTI|access-date=9 April 2020}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/small-biz/productline/building-materials/rs-3000-crore-given-to-2-crore-registered-construction-workers-mha/articleshow/75060935.cms?from=mdr|title=Rs 3000 crore given to 2 crore registered construction workers: MHA|date=9 April 2020|work=The Economic Times|access-date=9 April 2020|agency=ANI}}</ref> To provide relief to tax payers amid the COVID-19 crisis, the government decided to release {{INRConvert|18000|c|lk=on|year=2020}}.<ref>{{Cite news|last1=Aulakh|first1=Gulveen|url=https://economictimes.indiatimes.com/wealth/personal-finance-news/govt-to-immediately-issue-rs-18000-crore-as-pending-tax-refunds-to-individuals-businesses/articleshow/75050023.cms|title=Govt to immediately issue Rs 18,000 crore as pending tax refunds to individuals, businesses|date=8 April 2020|work=The Economic Times|access-date=10 April 2020}}</ref>
* On '''10 April''' the [[Asian Development Bank]] (ADB) assured India of {{INRConvert|15800|c|lk=on|year=2020}} assistance in the COVID-19 pandemic fight.<ref>{{cite web|url=https://www.livemint.com/news/india/covid-19-adb-assures-2-2-billion-package-for-india-11586496803375.html|title=Covid-19: ADB assures $2.2&nbsp;billion package for India|last1=Mishra|first1=Asit Ranjan|date=10 April 2020|website=Livemint|access-date=10 April 2020}}</ref>
* On '''14 April''' at 10&nbsp;am the Prime Minister made a public speech in which he announced the extension of the nationwide lockdown, as well as a calibrated reopening. "From the economy's point of view, the lockdown undoubtedly looks costly right now, but compared to the lives of Indian citizens, it is nothing" ''(translation, original in Hindi).''<ref name=":27">{{cite web|url=https://www.businessinsider.in/india/news/while-extending-indias-lockdown-modi-hinted-at-a-calibrated-re-opening-of-economy-say-experts/articleshow/75135600.cms|title=While extending India's lockdown Modi hinted at a calibrated re-opening of economy, say experts|website=Business Insider|access-date=14 April 2020}}</ref> A new set of guidelines for the calibrated opening of the economy and relaxation of the lockdown were also set in place which would take effect from 20 April.<ref>{{Cite news|last1=Sharma|first1=Aman|date=16 April 2020|title=India evolves world's largest smart model of lockdown: Officials|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/india-evolves-worlds-largest-smart-model-0f-lockdown-officials/articleshow/75169336.cms|access-date=16 April 2020}}</ref>

==== Lockdown Phase 2 (15 April – 3 May) ====
* On '''15 April''' as part of the new lockdown 2.0 guidelines, the [[Ministry of Home Affairs (India)|Ministry of Home Affairs]] announced, among other things, that all agricultural and horticultural activities will remain fully functional.<ref>{{Cite news|url=https://www.business-standard.com/multimedia/video-gallery/general/mha-issues-lockdown-2-0-guidelines-agricultural-horticultural-activities-to-remain-functional-102759.htm|title=MHA issues lockdown 2.0 guidelines: Agricultural, horticultural activities to remain functional|date=15 April 2020|work=Business Standard India|access-date=15 April 2020}}</ref> Information technology companies can function with 50% staff.<ref>{{cite web|url=https://www.livemint.com/news/india/it-companies-allowed-to-function-with-50-staff-during-lockdown-2-0-11586926334442.html|title=IT companies allowed to function with 50% staff during lockdown 2.0|last1=Agarwal|first1=Nikhil|date=15 April 2020|website=Livemint|access-date=15 April 2020}}</ref> The partial lift of restrictions would take place from 20 April.<ref name=":28">{{Cite news|url=https://www.bbc.com/news/world-asia-india-52290761|title=India to allow farmers back to work amid lockdown|date=15 April 2020|work=BBC News|access-date=16 April 2020}}</ref>
* On '''17 April''', RBI announced more measures to counter the economic impact of the pandemic including {{INRConvert|50000|c|lk=on|year=2020}} special finance to [[National Bank for Agriculture and Rural Development|NABARD]], [[Small Industries Development Bank of India|SIDBI]], and [[National Housing Bank|NHB]].<ref name=":30" /> Providing more relief to state governments, [[Ways and means advances|WMA]] limits have been increased by 60 per cent.<ref name=":30" />
* On '''18 April''', India changed its FDI policy to protect Indian companies from "opportunistic acquisitions" during the COVID-19 pandemic.<ref name=":31" /><ref name=":32" />
* On '''20 April''' limited economic activity is expected to resume outside of the COVID-19 containment zones.<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/tough-road-ahead-economy-gears-up-for-limited-restart/articleshow/75240635.cms|title=Indian Economy: Tough road ahead, economy gears up for limited restart {{!}} India Business News - Times of India|last1=Gupta|first1=Surojit|date=20 April 2020|website=The Times of India|access-date=20 April 2020}}</ref> During this selective relaxation of restrictions, numerous activities will remain prohibited such as educational institutions, passenger movement by trains, cinema halls, malls, shopping complexes and gymnasiums.<ref>{{cite web|url=https://timesofindia.indiatimes.com/india/coronavirus-lockdown-what-will-be-open-april-20-onwards/articleshow/75232160.cms|title=Lockdown extension in India: What's allowed from April 20 and what isn't|date=20 April 2020|website=The Times of India|access-date=20 April 2020}}</ref> [[Telangana]] was the first state to extend the lockdown to 7 May, beyond the national lockdown date of 3 May.<ref name="autogenerated1">{{cite web|url=https://www.ndtv.com/telangana-news/coronavirus-k-chandrashekar-rao-says-lockdown-in-telangana-till-may-7-food-delivery-apps-not-allowed-2214612|title=Telangana First State To Extend Lockdown Beyond May 3|last1=Uma|first1=Sudhir|date=20 April 2020|editor-last=Tiwari|editor-first=Vaibhav|publisher=NDTV|access-date=20 April 2020}}</ref>
* On '''21 April''' it was announced that a team from "The Technology Information, Forecasting and Assessment Council" (TIFAC)" under the [[Department of Science and Technology (India)|Department of Science and Technology]] are preparing a white paper on the revival of the India economy.<ref name=":332">{{cite web|url=https://www.hindustantimes.com/india-news/team-of-scientists-begin-work-on-ways-to-revive-indian-economy-after-covid-crisis/story-Z7yTOq1RI8kRwQWp0vSaQK.html|title=Team of scientists begin work on ways to revive Indian economy after Covid crisis|date=21 April 2020|website=Hindustan Times|access-date=22 April 2020}}</ref> TIFAC has a "mandate to think for the future".<ref name=":332"/>
* On '''23 April''' The [[Kerala]] government has decided to defer one month's salaries of employees. The government will reduce the salaries of all categories of government employees including teachers, university officers and employees in all PSUs, equivalent to a six days' worth salaries every month.<ref>{{Cite news|url=https://www.thehindu.com/news/national/kerala/govt-issues-orders-on-salary-deduction/article31425561.ece|title=Govt. issues orders on salary deduction|date=24 April 2020|work=The Hindu|access-date=28 April 2020|others=Special Correspondent|issn=0971-751X}}</ref><ref>{{cite web|url=https://www.businesstoday.in/current/economy-politics/coronavirus-kerala-to-deduct-one-month-salary-of-govt-staff-in-instalments/story/401797.html|title=Coronavirus: Kerala to deduct one month's salary of govt staff in instalments|website=businesstoday.in|access-date=28 April 2020}}</ref>
* On '''23–24 April''' banks from the [[Shanghai Cooperation Organisation]] (SCO) agreed upon a "joint roadmap for economic recovery".<ref>{{Cite news|last1=Chaudhury|first1=Dipanjan Roy|url=https://economictimes.indiatimes.com/news/international/business/sco-agrees-for-joint-roadmap-for-economic-recovery/articleshow/75369472.cms|title=SCO agrees for joint roadmap for economic recovery|date=25 April 2020|work=The Economic Times|access-date=25 April 2020}}</ref>
* On '''25 April''' the [[Ministry of Home Affairs (India)|Ministry of Home Affairs]] allowed the re-opening of some shops under certain restrictions.<ref>{{cite web|url=https://www.hindustantimes.com/india-news/mha-allows-standalone-neighbourhood-shops-to-open/story-o11woe2XoPg7TvfBsugkHO.html|title=Covid-19: MHA allows standalone, neighbourhood shops to open|last1=Chauhan|first1=Neeraj|date=25 April 2020|website=Hindustan Times|access-date=25 April 2020}}</ref> As per the "national directives for COVID-19 management", liquor and other shops would remain closed.<ref>{{cite web|url=http://pib.gov.in/Pressreleaseshare.aspx?PRID=1618078|title=Clarification on MHA order allowing Opening of Shops|last=Ministry of Home Affairs|date=25 April 2020|website=pib.gov.in|access-date=25 April 2020}}</ref> These relaxations do not apply to hotspots.<ref>{{cite web|url=http://pib.gov.in/Pressreleaseshare.aspx?PRID=1618049|title=MHA issues Order to States/UTs to allow Opening of Certain Categories of Shops, except those in Single and Multi-brand Malls|last=Ministry of Home Affairs|date=25 April 2020|website=pib.gov.in|access-date=25 April 2020}}</ref>
* On '''28 April''' the [[Asian Development Bank|ADB]] approved a {{INRConvert|10500|c|lk=on|year=2020}} loan to India to combat the pandemic.<ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/asian-development-bank-approves-1-5-billion-loan-to-india-to-fight-covid-19/articleshow/75426607.cms|title=ADB Loan to India: Asian Development Bank approves $1.5 billion loan to India to fight Covid-19|date=28 April 2020|website=The Times of India|others=PTI|access-date=29 April 2020}}</ref> The [[Government of Punjab, India|Punjab government]] formed a group of experts for reviving the economy following the pandemic led by [[Montek Singh Ahluwalia]] and with former Prime Minister [[Manmohan Singh|Dr. Manmohan Singh]] to provide guidance.<ref>{{Cite news|date=28 April 2020|title=Dr. Manmohan Singh to guide Punjab in Covid revival|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/manmohan-singh-to-guide-group-of-experts-for-post-covid-19-revival-strategy-for-punjab/articleshow/75409527.cms?from=mdr|access-date=29 April 2020}}</ref>
* On '''4 May''' India went into its third stage of lockdown. The country was divided into various zones (green, orange, red, containment) and as per the zone the economy has been opened up.<ref>{{Cite web|title=Lockdown Extension news India: What's allowed and what's not in the three zones|url=https://timesofindia.indiatimes.com/india/lockdown-extension-news-india-whats-allowed-and-whats-not-in-the-three-zones/articleshow/75497261.cms|date=4 May 2020|website=The Times of India|access-date=4 May 2020}}</ref>
{{Quote box
| quote = "The time has come to re-open Delhi. We will have to be ready to live with coronavirus." <br />[...] "How will we pay salaries? How will the government function? Every year, in April we used to make at least Rs 3,500 crore revenue, this year, we have made only Rs 300 crore revenue. We can't pay salaries with this money"
| author = [[Arvind Kejriwal]], [[List of chief ministers of Delhi|Delhi Chief Minister]], 4 May 2020
| source =<ref>{{cite news |title=We'll be in trouble if we don't start business activities: Maharashtra CM|url=https://www.ndtv.com/india-news/arvind-kejriwal-says-weddings-with-50-guests-allowed-call-centres-and-it-services-can-remain-open-in-delhi-2222600 |access-date=5 May 2020 |last1=Dwivedi|first1=Sukirti|editor-last=Sanyal|editor-first=Anindita|publisher=NDTV|date=4 May 2020}}</ref><ref>{{cite news |title=Business News›News›Politics and Nation›Time to re-open Delhi, people will have to be ready to live with coronavirus: CM Kejriwal Time to re-open Delhi, people will have to be ready to live with coronavirus: CM Kejriwal |url=https://economictimes.indiatimes.com/news/politics-and-nation/time-to-re-open-delhi-people-will-have-to-be-ready-to-live-with-coronavirus-cm-kejriwal/videoshow/75520711.cms |access-date=5 May 2020 |work=The Economic Times |agency=Mirror Now |date=3 May 2020}}</ref>
| width = 220px
| fontsize = 95%
}}

==== Lockdown Phase 3 (4–17 May) ====
* On '''5 May''' [[Maharashtra]] put a hold on capital works till March next year and imposed a 67% cut in development spend for 2020–21. This is the largest cut in expenditure since the state was formed.<ref name=":33">{{Cite web|title=Coronavirus epicentre Maharashtra freezes all development spend for a year, no new hiring|url=https://indianexpress.com/article/india/coronavirus-epicentre-maharashtra-freezes-development-spend-capital-works-6394190/|last1=Ashar|first1=Sandeep A|date=5 May 2020|website=The Indian Express|access-date=5 May 2020}}</ref>
* On '''7 May''' in a telephonic conversation with [[Indian External Affairs Minister]], the [[Minister for Foreign Affairs (Japan)|Minister for Foreign Affairs, Japan]] "requested cooperation for the resumption of activities by Japanese companies in India." Japan has around 1440 companies in India.<ref>{{Cite web|title=Lockdown: Japan Asks India to Help Its Firms Resume Operations|url=https://thewire.in/diplomacy/japanese-firms-operations-india-coronavirus|date=8 May 2020|website=The Wire|access-date=9 May 2020}}</ref><ref>{{Cite web|title=Japan-India Foreign Ministers' Telephone Talk|url=https://www.mofa.go.jp/press/release/press4e_002804.html|website=Ministry of Foreign Affairs of Japan|access-date=9 May 2020}}</ref>
* On '''11 May''' the Prime Minister, in a meeting with the Chief Ministers, asked the Minister's to each come up with a plan for resuming activity following the third extension of the lockdown on 17 May.<ref name=":42" /> The Prime Minister emphasized the need to start reopening the economy, while some of the Chief Ministers had their doubts related to the nature of relaxations.<ref name=":43" />

===== Economic package 1.0 announcements (12–17 May) =====
* On '''12 May''' the Prime Minister announced an overall economic package worth {{INRConvert|20|lc|lk=on|year=2020}}, adding that the fourth phase of the lock down will be different with new rules.<ref>{{Cite news|date=12 May 2020|title=PM Modi Speech LIVE Updates: To battle Covid-19, Rs 20,00,000 crore economic package|work=The Indian Express|url=https://indianexpress.com/article/india/coronavirus-india-lockdown-live-news-updates-pm-modi-address-to-nation-speech-today-lockdown-extension-6406297/|access-date=12 May 2020}}</ref> This Rs 20 lakh crore includes the previous government packages (Rs 1.7 lakh crore) as well as the RBI decisions (Rs 5-6 lakh crore). They make up about 40% of the package.<ref name=":442">{{Cite web|title=PM Modi's self-reliant India Mission economic package: Here is the fine print|url=https://indianexpress.com/article/explained/narendra-modi-coronavirus-economic-package-india-self-reliance-6406939/|last1=Misra|first1=Udit|date=13 May 2020|website=The Indian Express|access-date=13 May 2020}}</ref>
* On '''13 May''' the Finance Minister, Nirmala Sitharaman''',''' and the Minister of State for Finance and Corporate Affairs, [[Anurag Thakur]], elaborated on the financial package that was announced by the Prime Minister the day before.<ref name=":452">{{Cite web|title=Sitharaman announces EPF relief, TDS rate cut; ITR filing deadline extended|url=https://www.livemint.com/news/india/nirmala-sitharaman-live-press-conference-to-announce-details-of-rs-20-lakh-crore-economic-package-coronavirus-latest-updates-11589364147153.html|last1=Agarwal|first1=Nikhil|date=13 May 2020|website=Livemint|access-date=13 May 2020}}</ref> The definition of MSMEs was revised, which allows more companies to avail the benefits of MSME schemes.<ref name=":473">{{Cite news|date=15 May 2020|title=Summing up Modi's Covid stimulus: Takeaways so far from the 'mother of all incentives'|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/policy/summing-up-modis-covid-stimulus-takeaways-so-far-from-the-mother-of-all-incentives/articleshow/75758840.cms|access-date=16 May 2020}}</ref> The announcements on the first day also included collateral free loans and bank guarantees that would allow resumption of work for many MSMEs. For non-bank lenders a liquidity scheme and partial credit guarantee scheme. Tax deadlines were extended.<ref name=":473"/>
* On '''14 May''' the Finance Minister, for the second day, continued announcing the details of the economic package. Migrants, farmers, street vendors among others were covered in the package and the "One Nation One Ration Card" scheme was emphasized.<ref>{{Cite web|title=Migrants, Farmers In Nirmala Sitharaman's Day 2 Package Break-Up: Sources|url=https://www.ndtv.com/india-news/coronavirus-lockdown-migrants-rural-economy-focus-of-nirmala-sitharamans-media-address-today-on-details-of-rs-20-lakh-crore-package-sources-2228717|last1=Prabhu|first1=Sunil|date=14 May 2020|editor-last=Sanyal|editor-first=Anindita|publisher=NDTV|access-date=15 May 2020}}</ref><ref>{{Cite web|title='One Nation One Ration Card' For Migrants, Says Nirmala Sitharaman: Highlights|url=https://www.ndtv.com/india-news/nirmala-sitharaman-announces-economic-package-break-up-on-day-2-highlights-2228773|last1=Dey|first1=Stela|date=14 May 2020|publisher=NDTV|access-date=15 May 2020}}</ref>
* On '''15 May''' the Finance Minister, for the third day, continued the announcement of the economic package.<ref>{{Cite web|title=Nirmala Sitharaman announces economic package, reforms for farmers & fishermen|url=https://www.livemint.com/news/india/nirmala-sitharaman-live-updates-fm-to-release-3rd-part-of-economic-package-11589537389953.html|last1=Agarwal|first1=Nikhil|date=15 May 2020|website=Livemint|access-date=15 May 2020}}</ref><ref>{{Cite web|title=Nirmala Sitharaman LIVE: Govt strengthens India's agri, allied sectors supply chain; major export push too|url=https://www.financialexpress.com/economy/fm-nirmala-sitharamans-third-phase-of-announcement-on-economic-package-today-at-4-pm-agri-infra-reform-ltcg-ddt-tax-cut/1959660/|date=15 May 2020|website=The Financial Express|access-date=15 May 2020}}</ref> [[Operation Greens]] was extended from tomatoes, onion and potatoes (TOP) to all fruits and vegetables.<ref>{{Cite web|title=Operation Greens to be extended to all fruits, vegetables: Finance Minister Nirmala Sitharaman|url=https://www.hindustantimes.com/business-news/operation-greens-to-be-extended-to-all-fruits-vegetables-finance-minister-nirmala-sitharaman/story-uvQVuDP2e9jndeCINTh0xJ.html|date=15 May 2020|editor-last=Ray|editor-first=Meenakshi|website=Hindustan Times|access-date=16 May 2020}}</ref> Cereals, edible oils, oil seeds, potato and onion were deregulated (except in exceptional circumstances) and no stock limit shall apply for storage as was proposed Amendment in [[Essential Commodities Act]] (1958).<ref>{{Cite web|title=Govt to amend decades-old EC law to deregulate food items, give farmer marketing choice|url=https://www.hindustantimes.com/india-news/govt-to-amend-decades-old-ec-law-to-deregulate-food-items-give-farmer-marketing-choice/story-xjQ5aAEUAtvR0kLFDcbciK.html|date=15 May 2020|website=Hindustan Times|others=PTI|access-date=16 May 2020}}</ref> ''[[Pradhan Mantri Matsya Sampada Yojana|Matsya Sampada Yojana]]'' was announced for fisheries and animal husbandry infrastructure fund was announced.<ref name=":473"/> Agri-infrastructure fund, agricultural marketing reforms for farmers and fair price legal framework support for farmers were among other things covered.<ref name=":473" />
* On '''16 May''' the Finance Minister, for the fourth day, continued the announcement of the economic package.<ref name=":45">{{Cite web|title=Nirmala Sitharaman to announce last tranche of economic package today|url=https://timesofindia.indiatimes.com/business/india-business/nirmala-sitharaman-to-announce-last-tranche-of-economic-package-today/articleshow/75783857.cms|date=17 May 2020|website=The Times of India|access-date=17 May 2020}}</ref> A fund for [[Farm gate marketing|farm-gate infrastructure]] was announced, amendments to the [[Essential Commodities Act]], as well as the opening up of the defence sector, power sector and space sector for privatization. While not all the measures in the package provided immediate relief, the Finance Minister said that the immediate needs of the country had also been addressed.<ref name=":47">{{Cite web|title=Govt opens doors to greater private role in defence, power, space|url=https://timesofindia.indiatimes.com/india/govt-opens-doors-to-greater-private-role-in-defence-power-space/articleshow/75783007.cms|date=17 May 2020|website=The Times of India|access-date=17 May 2020}}</ref>
* On '''17 May''' the Finance Minister concluded the announcement of the economic package.<ref name=":45" />

==== Lockdown Phase 4 (18–31 May) ====
* On '''20 May''' the [[Cabinet of India]] cleared some proposals of the economic package, including a free food grain package and collateral free credit for MSMEs.<ref>{{Cite news|others=Special Correspondent|date=20 May 2020|title=Cabinet clears stimulus package proposals|work=The Hindu|url=https://www.thehindu.com/news/national/cabinet-clears-stimulus-package-proposals/article31635593.ece|access-date=21 May 2020|issn=0971-751X}}</ref><ref>{{Cite web|title=Cabinet approves key proposals in ₹20 tn economic package|url=https://www.livemint.com/news/india/cabinet-approves-key-proposals-in-20-tn-economic-package-11589996747069.html|last1=Das|first1=Gireesh Chandra Prasad, Shaswati|date=20 May 2020|website=Livemint|access-date=21 May 2020}}</ref>
* On '''22 May''' the RBI Governor held an unannounced press conference in which he extended the moratorium on loans<ref>{{Cite news|date=22 May 2020|title=RBI extends loan moratorium by 3 more months|work=The Economic Times|url=https://economictimes.indiatimes.com/markets/stocks/news/rbi-extends-loan-moratorium-by-3-more-months/articleshow/75884184.cms|access-date=22 May 2020}}</ref> and cut repo and reverse repo rates among other things.<ref>{{Cite web|title=RBI repo rate cut: RBI reduces repo rate by 40 bps from 4.4% to 4%: Key points of Shaktikanta Das's speech - Times of India|url=https://timesofindia.indiatimes.com/business/india-business/rbi-reduces-repo-rate-by-40-bps-from-4-4-to-4-key-points-of-shaktikanta-dass-speech/articleshow/75883240.cms|date=22 May 2020|website=The Times of India|access-date=22 May 2020}}</ref> The RBI Governor said that food inflation will be a stressor,<ref>{{Cite web|title=Rate cut to relief for borrowers: Top announcements by RBI Governor Shaktikanta Das|url=https://indianexpress.com/article/business/banking-and-finance/rbi-reserve-bank-of-india-governor-shaktikanta-das-key-announcements-6421912/|date=22 May 2020|website=The Indian Express|access-date=22 May 2020}}</ref> but added that the forecast for normal monsoons and positive growth in the next quarter would be a positive,<ref>{{Cite web|title='We must have faith in India's resilience and together we'll triumph': RBI chief|url=https://www.livemint.com/news/india/-we-must-have-faith-in-india-s-resilience-and-together-we-ll-triumph-rbi-chief-11590125049386.html|date=22 May 2020|editor-last=Dasgupta|editor-first=Surajit|website=Livemint|access-date=22 May 2020}}</ref> and that "the combination of fiscal, monetary and administrative measures will create conditions that will enable a gradual economic revival going forward."<ref>{{Cite web|title=RBI Makes Loans Cheaper, Offers Big Relief On Interest Payments Too|url=https://www.ndtv.com/business/rbi-cuts-key-lending-rate-to-4-from-4-4-amid-covid-19-crisis-2233173|website=NDTV.com|access-date=22 May 2020}}</ref> RBI also allocated funds for [[Exim Bank (India)|Exim Banks]] and an extension to [[SIDBI]].<ref>{{Cite web|title=GDP Growth In 2020-21 Expected To Remain In Negative: What RBI Said Today|url=https://www.ndtv.com/business/rbi-governors-top-5-announcements-today-amid-covid-19-coronavirus-pandemic-2233192|date=22 May 2020|editor-last=Noronha|editor-first=Peter|publisher=NDTV|access-date=22 May 2020}}</ref> The measures were a result of the meeting of the [[Monetary Policy Committee (India)|Monetary Policy Committee]] on 22 May.<ref>{{Cite web|title=Reserve Bank of India's monetary policy statement; full text here|url=https://www.livemint.com/news/india/rbi-governor-shaktikanta-das-recent-announcements-full-text-here-11590123111945.html|date=22 May 2020|website=Livemint|access-date=22 May 2020}}</ref>
*On '''25 May''' domestic flights resumed with limited operations.<ref>{{Cite web|title=Domestic flights resume today: Read state-wise protocols you should follow|url=https://www.livemint.com/news/india/domestic-flights-resume-today-here-s-state-wise-protocols-you-should-know-11590368530880.html|last=Kumar|first=Ravi Prakash|date=25 May 2020|website=Livemint|access-date=26 May 2020}}</ref><ref>{{Cite web|title=Sky 'action' back, 630 cancelled|url=https://www.telegraphindia.com/india/coronavirus-lockdown-passenger-flights-took-to-the-skies-in-india-for-the-first-time-in-two-months-amid-chaos/cid/1775889|date=26 May 2020|website=The Telegraph|location=Kolkota|access-date=26 May 2020}}</ref>
*On '''30 May''' new lockdown guidelines were announced by the Ministry of Home Affairs which would come into effect in a phased manner from 1 June onwards. Many of the new guidelines "have an economic focus".<ref>{{Cite web|title="Unlock1": Malls, Restaurants, Places Of Worship To Reopen June 8|url=https://www.ndtv.com/india-news/lockdown-extended-till-june-30-malls-restaurants-can-reopen-from-june-8-except-in-containment-zones-2237910|last=Sharma|first=Neeta|date=30 May 2020|publisher=NDTV|access-date=31 May 2020}}</ref><ref>{{Cite web|title=Lockdown 5.0 guidelines: What's allowed, what's not|url=https://indianexpress.com/article/india/lockdown-5-0-guidelines-6434777/|date=30 May 2020|website=The Indian Express|access-date=31 May 2020}}</ref><ref name=":54">{{Cite news|last=Singh|first=Vijaita|date=30 May 2020|title=Coronavirus lockdown {{!}} Government eases a slew of restrictions; malls, religious places to open|work=The Hindu|url=https://www.thehindu.com/news/national/coronavirus-lockdown-mha-releases-new-guidelines-for-phased-reopening/article31711099.ece|access-date=1 June 2020|issn=0971-751X}}</ref>

==== Unlock 1 ====

* On '''1 June''' Delhi allowed all industries and markets to reopen including barber shops and salons; curfew time changed to 9pm to 5am while educational institutes were to remain closed.<ref>{{Cite web|title=Barber Shops, Salons, All Shops Can Open In Delhi. Details Here|url=https://www.ndtv.com/india-news/arvind-kejriwal-says-barber-shops-salons-can-open-in-delhi-not-spas-all-markets-can-open-2238570|date=1 June 2020|publisher=NDTV|access-date=1 June 2020}}</ref> Numerous public utilities, businesses and activities such as gymnasiums, cinema halls and the [[Delhi Metro]] to remain closed.<ref name=":54" />
* On '''2 June''' mobile manufacturing incentives were offered by the government to mobile manufacturers. This included a {{INRConvert|50000|c|lk=|year=2020}} production-linked incentive on goods made locally in India.<ref>{{Cite web|last1=Saxena|first1=Ragini|last2=Kumar|first2=Santosh|date=2 June 2020|title=India Plans $6.6 Billion in Incentives to Woo Smartphone Makers|url=https://www.bloombergquint.com/business/india-plans-6-6-billion-in-incentives-to-woo-smartphone-makers|access-date=5 June 2020|website=BloombergQuint}}</ref><ref>{{Cite web|title=Inside India's ₹50,000 crore scheme to woo electronics manufacturing including smartphones|url=https://www.businessinsider.in/policy/economy/news/inside-indias-50000-crore-scheme-to-woo-electronics-manufacturing-including-smartphones/articleshow/76207462.cms|access-date=5 June 2020|website=Business Insider}}</ref> Five Indian firms would also be selected for the scheme.<ref>{{Cite news|last=Reuters|date=2 June 2020|title=Vocal for local: India's $6.7 bn plan to boost electronics manufacturing|work=Business Standard India|url=https://www.business-standard.com/article/economy-policy/vocal-for-local-india-unveils-6-7-bn-plan-to-boost-electronics-production-120060201355_1.html|access-date=5 June 2020}}</ref>
*On '''8 June''' religious places, malls and restaurants were permitted to open all over India, except in the containment zones.<ref>{{Cite web|last=Sharma|first=Neetu Chandra|date=8 June 2020|title=Amid rise in Covid-19 cases, India to open its economy further|url=https://www.livemint.com/news/india/amid-rise-in-covid-19-cases-india-to-open-its-economy-further-11591556833739.html|access-date=13 June 2020|website=Livemint}}</ref><ref name=":54" />
*On '''20 June''' the [[Garib Kalyan Rojgar Abhiyaan]] was launched to tackle the [[Indian migrant workers during the COVID-19 pandemic|impact of COVID-19 on migrant workers in India]]. It is a rural public works scheme with an initial funding of [[Indian rupee|₹]]50,000 [[crore]] (US$7.0 billion) covering 116 districts in 6 states.<ref>{{Cite web|date=2020-06-20|title=PM Modi launches Rs 50,000-crore Garib Kalyan Rojgar Abhiyaan to generate jobs|url=https://www.hindustantimes.com/india-news/pm-modi-launches-rs-50-000-crore-garib-kalyan-rojgar-abhiyaan-to-generate-jobs/story-xo36Sp8aBFn4nagoNx9AEO.html|access-date=2020-06-20|website=Hindustan Times|language=en}}</ref><ref>{{Cite web|date=20 June 2020|title=Garib Kalyan Rojgar Abhiyaan: PM Modi to launch mega Garib Kalyan Rojgar Abhiyaan today|url=https://timesofindia.indiatimes.com/india/pm-modi-to-launch-mega-garib-kalyan-rojgar-abhiyaan-today-all-you-need-to-know/articleshow/76475934.cms|access-date=2020-06-20|website=The Times of India|language=en}}</ref><ref name=":57">{{Cite web|date=2020-06-20|title=Rs 50,000 crore, 116 districts, 6 states: PM Modi launches mega Garib Kalyan Rojgar Abhiyaan|url=https://www.hindustantimes.com/india-news/rs-50-000-crore-116-districts-6-states-pm-modi-to-launch-mega-garib-kalyan-rojgar-abhiyaan-today/story-fH5Vic7da0H8FkEmrq49dP.html|access-date=2020-06-20|website=Hindustan Times|language=en}}</ref>

==== Unlock 2 ====
* On '''1 July''' new guidelines came into place related to the lockdown. While there were certain relaxations; schools, colleges, gyms, movie halls, metros etc. will remain closed.<ref>{{Cite web|last=Tiwary|first=Deeptiman|date=2020-06-30|title=Unlock 2: More flights, trains, but no schools and colleges till July 31|url=https://indianexpress.com/article/coronavirus/unlock-2-guidelines-july-coronavirus-6482179/|access-date=2020-07-27|website=The Indian Express|language=en}}</ref>
* On '''29 July''', the [[Cabinet of India]] passed the [[National Education Policy 2020|National Educational Policy 2020]] aimed at strengthening India's education sector and in turn the economy.<ref name=":61">{{Cite web|last=Upadhyay|first=Deepak|date=2020-07-29|title=Govt approves plan to boost state spending on education to 6% of GDP|url=https://www.livemint.com/education/news/govt-approves-plan-to-boost-state-spending-on-education-to-6-of-gdp-11596024998889.html|access-date=2020-07-30|website=Livemint|language=en}}</ref>

==== Unlock 3 ====
* From '''5 August''' onwards gym and yoga centres could begin opening.<ref name=":62" />
* On '''11 August''', in a video-conference between the Prime Minister and states, the states asked for more funding to fight COVID-19.<ref name=":62">{{cite news |title=In meeting with PM Modi, states seek more funds to tackle Covid-19 |url=https://www.hindustantimes.com/india-news/in-meeting-with-pm-modi-states-seek-more-funds-to-tackle-covid-19-some-ask-for-removal-of-spending-cap/story-wnkMgrtWez9I9WxGQA9VSM.html |access-date=11 August 2020 |work=Hindustan Times |date=11 August 2020}}</ref>
* On '''23 August''', the government announced economic measures to tackle effect of COVID-19.<ref name=govtmeasures>{{cite news |title='Blueprint ready': Govt mulling fourth booster dose to revive economy |url=https://www.livemint.com/news/india/-blueprint-ready-govt-mulling-fourth-booster-dose-to-revive-economy-1568725435264.html |access-date=12 October 2020 |work=Livemint |agency=PTI |date=17 September 2020}}</ref>
* On '''30 August''', the government announced more economic measures.<ref name=govtmeasures />

==== Unlock 4 ====
* On '''1 September''' new guidelines were announced by the centre as well as the states in the graded re-opening of the economy and society.<ref>{{cite news |title=Unlock 4.0: Full guidelines issued by different states |url=https://indianexpress.com/article/india/unlock-4-0-guidelines-here-is-whats-allowed-whats-not-6576059/ |access-date=12 October 2020 |work=The Indian Express |date=1 September 2020}}</ref><ref>{{cite news |last1=Deeptiman |first1=Tiwary |title=Unlock 4.0 guidelines: Metro to start September 7, no state lockdowns outside containment zones |url=https://indianexpress.com/article/india/india-unlock-4-0-guidelines-6575245/ |access-date=12 October 2020 |work=The Indian Express |date=30 August 2020}}</ref>
* On '''11 September''' Delhi Metro resumed normal operations with pre-COVID-19 timings.<ref>{{cite news |title=Delhi Metro to resume normal operation timing from tomorrow |url=https://www.hindustantimes.com/india-news/delhi-metro-to-resume-normal-operation-timing-from-tomorrow/story-1NdeNZKMzwBPix8RF6TVkO.html |access-date=25 September 2020 |work=Hindustan Times |date=11 September 2020}}</ref>

==== Unlock 5 ====
* In '''October''', unlock 5 began seeing more of society and the economy open up.<ref>{{cite news |last1=Kalita |first1=Kangkan |title=Unlock-5: Assam's Kamakhya temple reopens for pilgrims, over 200 visit on 1st day |url=https://timesofindia.indiatimes.com/city/guwahati/unlock-5-assams-kamakhya-temple-reopens-for-pilgrims-over-200-visit-on-1st-day/articleshow/78608585.cms |access-date=12 October 2020 |work=The Times of India |date=11 October 2020}}</ref>
* In '''October,''' cinemas reopen as a part of Unlock 5 as India bends the COVID-19 pandemic curve.<ref>{{Cite web|last=Sharma|first=Neetu Chandra|date=2020-10-16|title=Cinemas reopen in Unlock 5 as India bends the pandemic curve|url=https://www.livemint.com/industry/media/cinemas-reopen-in-unlock-5-as-india-bends-the-pandemic-curve-11602812171844.html|access-date=2020-10-16|website=mint|language=en}}</ref>
*On '''12 October''', the government announced a {{INRConvert|73000|c|lk=on|year=2020}} worth economic stimulus package, labelled as Atmanirbhar Bharat Abhiyan 2.0.<ref name=":65" />

==== November ====
*On '''12''' '''November''', the government announced a {{INRConvert|2.65|lc|lk=on|year=2020}} worth economic stimulus package, labelled as Atmanirbhar Bharat Abhiyan 3.0.<ref name=":65">{{Cite web|last=Sharma|first=Manoj|date=12 November 2020|title=Govt announces Atmanirbhar Bharat 3.0; claims COVID stimulus now worth Rs 29.8 lakh crore|url=https://www.businesstoday.in/current/corporate/govt-announces-atmanirbhar-bharat-30-covid-stimulus-worth-rs-29-lakh-crore/story/421809.html|url-status=live|archive-url=|archive-date=|access-date=2020-11-26|website=Business Today}}</ref>

=== Atmanirbhar Bharat Abhiyan ===
[[File:Overall stimulus provided by Atmanirbhar Bharat Package.png|350px|Overall stimulus provided by Atmanirbhar Bharat package 1.0 {{Update after|2020|11|26|reason=Add second and third installments|text=(Add second and third installments)}}|alt=|thumb]]
[[File:India Economic Package Atmanirbhar Bharat Abhiyan.png|350x350px|Atmanirbhar Bharat 1.0 package breakup (only 13th to 17th announcements visible) (In Rs. Cr.){{Update after|2020|11|26|reason=Add second and third installments|text=(Add second and third installments)}}|alt=|thumb]]{{See also|Atmanirbhar Bharat}}
On 12 May the Prime Minister, in an address to the nation, said that the coronavirus crisis should be seen as an opportunity, laying emphasis on domestic products and "economic self-reliance", an ''Atmanirbhar Bharat ({{Translation|Self-reliant India}})'' through a ''Atmanirbhar Bharat Abhiyan ({{Translation|Self-reliant India Mission}}'').<ref name=":442"/> The following day the Finance Minister started laying out the details of the Prime Minister's vision which would continue into the next few days.<ref name=":452"/> The Finance Minister stated that the aim was to "spur growth" and "self-reliance", adding that, "self-reliant India does not mean cutting off from rest of the world".<ref name=":452" /><ref>{{Cite web|title='To spur growth': Nirmala Sitharaman on PM Modi's Atamanirbhar Bharat Abhiyan|url=https://www.hindustantimes.com/india-news/to-spur-growth-nirmala-on-pm-modi-s-atamanirbha-bharat-abhiyan/story-s71j5O0ZG21QY4qsTsUnTP.html|date=13 May 2020|website=Hindustan Times|access-date=13 May 2020}}</ref><ref>{{Cite web|title=In FM's address, emphasis on 'Atamanirbhar Bharat' as she explains term in 4 languages|url=https://www.hindustantimes.com/india-news/in-finance-minister-nirmala-sitharaman-s-address-emphasis-on-atma-nirbhar-bharat-as-she-explains-the-term-in-4-languages/story-Z8FMRoJgvJ6bnFoehCEl9M.html|date=13 May 2020|website=Hindustan Times|access-date=13 May 2020}}</ref> The law and IT minister, [[Ravi Shankar Prasad]], also said that self-reliance does "not mean isolating away from the world. Foreign direct investment is welcome, technology is welcome [...] self-reliant India... translates to being a bigger and more important part of the global economy."<ref>{{Cite news|date=26 May 2020|title=Bennett University webinar: Need to tap Artificial Intelligence to fight Covid, says IT minister Ravi Shankar Prasad|work=The Economic Times|url=https://economictimes.indiatimes.com/tech/ites/prasad-need-to-tap-artificial-intelligence-to-fight-covid/articleshow/75984783.cms?from=mdr|access-date=26 May 2020}}</ref> [[Shashi Tharoor]] called the 'Self-reliant India Mission' a repackaged version of [[Make in India]].<ref>{{cite news|date=13 May 2020|title='Repackaged version of Make in India': Shashi Tharoor on PM Modi's Self-reliant India Mission|work=Hindustan Times|agency=ANI|url=https://www.hindustantimes.com/india-news/repackaged-version-of-make-in-india-shashi-tharoor-on-pm-modi-s-self-reliant-india-mission/story-bXuKzr5rG9XRcEnbaQpNRJ.html|access-date=14 May 2020}}</ref>

==== Economic package (Atmanirbhar Bharat Abhiyan 1.0) ====
India's overall economic package was announced as {{INRConvert|20|lc|lk=on|year=2020}}, 10% of India's GDP. The package, though announced on 12 May by the Prime Minister, included previous government actions, including the RBI announcements.<ref name=":46">{{Cite web|title=Math behind Rs 20-lakh crore economic package: It is 10% of GDP but about half is already factored in|url=https://indianexpress.com/article/explained/the-math-its-10-of-gdp-but-less-than-5-cash-outgo-pm-modi-relief-packages-6407302/|last1=Iyer|first1=P Vaidyanathan|date=15 May 2020|website=The Indian Express|access-date=15 May 2020}}</ref> The previous RBI announcements included around {{INRConvert|8|lc|lk=on|year=2020}} [[Market liquidity|liquidity]]. the economic package also included the Finance Minister announcement of a package totaling {{INRConvert|170000|c|lk=on|year=2020}} on 26 March.<ref name=":46" /><ref>{{Cite web|title=How 10% Of GDP Package Breaks Up: Additional Is Rs 13.5 Lakh Crore|url=https://www.ndtv.com/business/coronavirus-covid-19-crisis-how-10-of-gdp-package-breaks-up-additional-is-rs-13-5-lakh-crore-2227899|date=13 May 2020|publisher=NDTV|others=Reuters|access-date=15 May 2020}}</ref> The strategy of combining fiscal and monetary, liquidity measures was defended by the government. Sitharaman explained that other countries had also done the same.<ref>{{Cite web|title=Govt defends move to combine fiscal, monetary measures in stimulus package|url=https://www.livemint.com/news/india/we-do-look-at-what-other-countries-include-in-their-stimulus-package-fm-11589555820184.html|last1=Mishra|first1=Asit Ranjan|date=15 May 2020|website=Livemint|access-date=16 May 2020}}</ref> Estimates of the size of India's fiscal stimulus as a percentage of GDP varied between 0.75% to 1.3%.<ref name=":51">{{Cite web|title=India Stimulus Package: Government's economic package only 1% of GDP, say analysts|url=https://timesofindia.indiatimes.com/business/india-business/govts-eco-package-only-1-of-gdp-say-analysts/articleshow/75837840.cms|date=20 May 2020|website=The Times of India|access-date=24 May 2020}}</ref> The Finance Minister, for five days, between 13 and 17 May, held press conferences in which the details of the economic package was explained.<ref name=":45" />

The economic package consisted of a mix of reforms, infrastructure building, support to stressed businesses and a certain amount of direct cash support.<ref name=":48" /> The "collateral-free loans" that the package provided aimed to "resume business activity and safeguard jobs".<ref>{{Cite news|date=13 May 2020|title=India targets small businesses in economic bailout|work=BBC News|url=https://www.bbc.com/news/world-asia-india-52640807|access-date=18 May 2020}}</ref> Changes in FDI policy, privatization of the power sector, provident fund contribution and [[Ease of doing business index|ease of doing business]] measures were also announced.<ref>{{Cite web|last=BTG Legal|date=10 June 2020|title=Covid-19 Economic Relief Package - 8 Significant Announcements - Coronavirus (COVID-19) - India|url=https://www.mondaq.com/india/financing/951030/covid-19-economic-relief-package--8-significant-announcements|access-date=15 June 2020|website=[[Mondaq]]}}</ref> Land reforms at the state level which were not mentioned in the economic package are also part of the overall changes.<ref name=":52">{{Cite news|last=Chauhan|first=Ashish|author-link=Ashish Chauhan|date=20 May 2020|title=Who said India's Covid stimulus package is way less than others|work=The Economic Times|url=https://economictimes.indiatimes.com/markets/stocks/news/who-said-indias-covid-stimulus-package-is-way-less-than-others/articleshow/75848456.cms|access-date=26 May 2020}}</ref>

Reports though stated the economic package did not address short term demand concerns, which may in turn pull down the economy even more; with most of the announcements being related to supply.<ref name=":48">{{Cite news|date=18 May 2020|title=The economic stimulus: More for supply, less for demand|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/the-economic-stimulus-more-for-supply-less-for-demand/articleshow/75802168.cms|access-date=18 May 2020}}</ref> It was also reported by economists such as Sonal Varma, Nomura Global Market Research, that "long pending politically sensitive reforms" have been pushed through during this time and with this package.<ref>{{Cite web|title=Rs 20 Lakh Crore Economic Package With Little Government Spend|url=https://www.bloombergquint.com/coronavirus-outbreak/rs-20-lakh-crore-economic-package-with-little-government-spend|last1=Ohri|first1=Nikunj|date=17 May 2020|website=BloombergQuint|url-access=subscription|access-date=18 May 2020}}</ref> While the economic package was criticised on various fronts, it was also given neutral to positive responses on other fronts such as for the necessary caution the government showed in its spending.<ref>{{Cite news|date=21 May 2020|title=View: No, India doesn't need a bigger stimulus|work=The Economic Times|agency=Bloomberg|url=https://economictimes.indiatimes.com/news/economy/policy/view-no-india-doesnt-need-a-bigger-stimulus/articleshow/75859800.cms|access-date=21 May 2020}}</ref><ref>{{Cite web|title=No, India Doesn't Need a Bigger Stimulus|url=https://www.bloomberg.com/opinion/articles/2020-05-21/india-s-coronavirus-relief-package-is-the-right-size|last1=Sharma|first1=Mihir|date=21 May 2020|publisher=Bloomberg L.P.|access-date=21 May 2020}}</ref>

In December 2020, a Right to Information petition revealed that less than 10% of the package had been actually disbursed, chiefly in the form of emergency credit.<ref name=":66" />

==== Atmanirbhar Bharat Abhiyan 2.0 ====
On 12 October 2020, the finance minister announced another economic stimulus package. This package has been launched keeping in mind the upcoming festive season. The package includes perks for central govt. employees to spend more on consumer durables during the festive season and a much higher capital expenditure for both the centre and states.<ref>{{Cite web|last=Mishra|first=Asit Ranjan|date=2020-10-21|title=We are working on the next stimulus package: Economic affairs secretary|url=https://www.livemint.com/news/india/we-are-working-on-the-next-stimulus-package-economic-affairs-secretary-11603279267644.html|access-date=2020-10-22|website=mint|language=en}}</ref>{{Expand section|date=November 2020}}

==== Atmanirbhar Bharat Abhiyan 3.0 ====
On 12 November 2020, the government announced {{INRConvert|2.65|lc|lk=on|year=2020}} worth of economic stimulus.<ref name=":65" />{{Expand section|date=November 2020}}

=== Change in FDI policy ===
On 18 April 2020, India changed its [[foreign direct investment]] (FDI) policy to curb "'opportunistic takeovers/acquisitions' of Indian companies due to the current pandemic", according to the [[Department for Promotion of Industry and Internal Trade (DPIIT)|Department for Promotion of Industry and Internal Trade]].<ref name=":31">{{cite web|url=https://www.hindustantimes.com/india-news/govt-tweaks-foreign-investment-rules-to-curb-opportunistic-takeovers/story-93jDE0mbun58VvVyiEv3CO.html|title=Govt tweaks FDI rules to shield domestic firms. Thank you, tweets Rahul Gandhi|date=18 April 2020|website=Hindustan Times|access-date=22 April 2020}}</ref> With the fall in global shares prices, there is concern that China could take advantage of the situation, leading to hostile takeovers.<ref>{{cite web|url=https://www.financialexpress.com/economy/chinas-protest-of-indias-revised-fdi-policy-a-process-of-de-globalisation-begins-opine-experts/1936163/|title=China's protest of India's revised FDI Policy: A process of de-globalisation begins opine experts|date=22 April 2020|website=The Financial Express|access-date=22 April 2020}}</ref><ref>{{cite web|url=https://timesofindia.indiatimes.com/business/india-business/changes-in-fdi-rules-dont-violate-treaties-india-to-china/articleshow/75283196.cms|title=India to China on FDI Policy: Changes in FDI rules don't violate treaties|date=22 April 2020|website=The Times of India|access-date=22 April 2020}}</ref> While the new FDI policy does not restrict markets, the policy ensures that all FDI from countries that share a land border with India will now be under scrutiny of the [[Ministry of Commerce and Industry (India)|Ministry of Commerce and Industry]].<ref>{{Cite news|last1=Suneja|first1=Kirtika|url=https://economictimes.indiatimes.com/news/economy/policy/fdi-policy-does-not-restrict-market-access-officials/articleshow/75281313.cms|title=FDI policy does not restrict market access: Officials|date=22 April 2020|work=The Economic Times|access-date=22 April 2020}}</ref><ref name=":32">{{cite web|url=https://www.livemint.com/companies/news/scrutiny-is-key-to-allowing-chinese-presence-in-india-11587497418031.html|title=Scrutiny is key to allowing Chinese presence in India|last1=Tripathi|first1=Dhirendra|date=22 April 2020|website=Livemint|access-date=22 April 2020}}</ref><ref>{{Cite news|url=https://economictimes.indiatimes.com/news/economy/policy/view-why-govts-recent-fdi-move-may-not-bode-well-for-the-indian-economy/articleshow/75238956.cms|title=View: Why govt's recent FDI move may not bode well for the Indian economy|date=19 April 2020|work=The Economic Times|access-date=22 April 2020}}</ref>

=== Alternative to China ===
{{See also|China Plus One}}
The [[Government of India]] is aiming to attract companies that wish to move out of China or are looking for an alternative to China.<ref name=":37">{{Cite news|last1=Sikarwar|first1=Deepshikha|date=23 April 2020|title=Red carpet for firms looking to ditch China|work=The Economic Times|url=https://economictimes.indiatimes.com/news/company/corporate-trends/red-carpet-for-firms-looking-to-ditch-china/articleshow/75280859.cms?from=mdr|access-date=4 May 2020}}</ref><ref>{{Cite news|last1=Aulakh|first1=Gulveen|date=30 April 2020|title=US supports firms weighing India as alternative to China|work=The Economic Times|url=https://economictimes.indiatimes.com/news/international/business/us-supports-firms-weighing-india-as-alternative-to-china/articleshow/75437352.cms|access-date=4 May 2020}}</ref> The PM's office is conveying to the government central and state machinery to ready pro-investment strategies.<ref name=":37" /><ref>{{Cite web|title=South Korean firms exiting China will look at India as an alternative destination|url=https://www.thehindubusinessline.com/news/south-korean-firms-exiting-china-will-look-at-india-as-an-alternative-destination/article31431102.ece|last1=Bose|first1=Pratim Ranjan|date=25 April 2020|website=The Hindu @businessline|access-date=4 May 2020}}</ref> A total of at least 461,589 hectares has been earmarked for the purpose, as reported by ''Economic Times''.<ref>{{Cite news|date=4 May 2020|title=India offers land twice Luxembourg's size to firms leaving China|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/policy/india-offers-land-twice-luxembourgs-size-to-firms-leaving-china/articleshow/75534412.cms|access-date=4 May 2020}}</ref><ref>{{Cite web|title=Korean companies keen to move out of China to India|url=https://timesofindia.indiatimes.com/business/india-business/korean-companies-keen-to-move-out-of-china-to-india/articleshow/75130387.cms|last1=Ch|first1=Rajesh|website=The Times of India|access-date=4 May 2020}}</ref><ref>{{Cite web|title=Global firms look to shift from China to India|url=https://www.livemint.com/industry/manufacturing/global-firms-look-to-shift-from-china-to-india-11587494725838.html|last1=Mukherji|first1=Malyaban Ghosh, Biman|date=22 April 2020|website=Livemint|access-date=4 May 2020}}</ref> The government has been looking at the '[[China Plus One]]' strategy for a number of months.<ref>{{Cite news|date=1 May 2020|title=PM Modi signals push to attract firms that exit China to India|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/policy/pm-modi-signals-push-to-attract-firms-that-exit-china-to-india/articleshow/75484913.cms|access-date=25 May 2020}}</ref> The Indian media has reported on the 'China Plus One' as being one of the strategies that Indian businesses are also looking at, with numerous Indian companies shifting manufacturing partly or completely out of China.<ref>{{Cite news|last=Shyam|first=Ashutosh|date=30 April 2020|title=India Inc wants the sum of its parts to be 'China Plus One'|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/foreign-trade/india-inc-wants-the-sum-of-its-parts-to-be-china-plus-one/articleshow/75462108.cms|access-date=25 May 2020}}</ref> The Karnataka government is also following a "Compete With China" cluster strategy forecasting "large-scale manufacturing".<ref>{{Cite web|title=Karnataka looks at wooing foreign firms as alternative to China|url=https://www.newindianexpress.com/cities/bengaluru/2020/apr/21/karnataka-looks-at-wooing-foreign-firms-as-alternative-to-china-2133017.html|last=Patil|first=Ramu|date=21 April 2020|website=The New Indian Express|access-date=25 May 2020}}</ref> In mid-May, the German footwear brand, Von Wellx, decided to shift its entire operations out of China and into India.<ref>{{Cite web|title=Von Wellx: Germany shoe brand walks out of China, sets foot in Agra|url=https://timesofindia.indiatimes.com/city/lucknow/german-shoe-brand-walks-out-of-china-sets-foot-in-agra/articleshow/75838129.cms|date=20 May 2020|website=The Times of India|access-date=26 May 2020}}</ref>

While India does face numerous difficulties in competing with China,<ref>{{Cite web|title=Why India Won't Be Able to Compete With China in the Post-COVID-19 World|url=https://thewire.in/political-economy/can-india-compete-with-china-in-the-post-covid-19-world|last=Ilaiah|first=Kancha|author-link=Kancha Ilaiah Shepherd|date=18 May 2020|website=The Wire|access-date=26 May 2020}}</ref> India is also balancing the economic situation in light of [[China–United States trade war]]. In the case of [[Huawei]], the Indian telecom industry at large wants Huawei in India, as a result of which the Indian government faces potential sanctions.<ref>{{Cite web|title=The tangled web of India-China relations|url=https://www.lowyinstitute.org/the-interpreter/tangled-web-india-china-relations|last=Nanda|first=Biren|date=21 May 2020|publisher=[[Lowy Institute]]|access-date=26 May 2020}}</ref> In July reports emerged that India's curbs on tire imports from China had a delaying effect on domestic production of other components of premium German cars.<ref>{{Cite web|last=Ghosh|first=Malyaban|date=2020-07-22|title=India's curbs on tyre imports from China has German luxury car makers worried|url=https://www.livemint.com/news/india/india-s-curbs-on-tyre-imports-from-china-has-german-luxury-car-makers-worried-11595412486590.html|access-date=2020-07-27|website=Livemint|language=en}}</ref> The current imports from China to India, valuing over $75 billion per year, create a current dependence on China and make it difficult to have a large scale stoppage of trade between the two countries.<ref>{{Cite web|last=HV|first=Harish|date=5 June 2020|title='Atmanirbharta' from China — easier said than done|url=https://www.thehindubusinessline.com/opinion/atmanirbharta-from-china-easier-said-than-done/article31758424.ece|access-date=5 June 2020|website=The Hindu @businessline}}</ref> However, by August 2020, due to various government measures and with public and international support, Chinese exports to India had fallen by 25%.<ref name=":482">{{Cite web|date=8 August 2020|title=Boycott China manifests! Chinese exports to India crash 25% in 2020; trade down 19%|url=https://www.businesstoday.in/current/economy-politics/boycott-china-manifests-chinese-exports-to-india-crash-25-percent-in-2020-trade-down-19-percent/story/412435.html|access-date=2020-08-11|website=Business Today}}</ref><ref name=":492">{{Cite web|date=9 August 2020|title=After Boycott China call, Chinese exports to India crash 24.7% in 2020; trade drops by 18.6%|url=https://www.indiatoday.in/business/story/boycott-china-call-chinese-exports-to-india-in-2020-trade-drops-1709297-2020-08-09|access-date=2020-08-11|website=India Today|language=en}}</ref> In September, Union Minister Piyush Goyal informed parliament that there was a 27.63% decrease in India's imports from China during April to August. China maintains [[Most favoured nation|Most Favoured Nation]] status.<ref>{{cite news |title=India's imports from China dip 27.63 per cent during April–August: Piyush Goyal |url=https://www.hindustantimes.com/india-news/india-s-imports-from-china-dip-27-63-per-cent-during-april-august-piyush-goyal/story-ppkIuHvm93FuvGgFMqNelM.html |access-date=25 September 2020 |work=Hindustan Times |agency=PTI |date=21 September 2020}}</ref>

== Economic situation ==
[[File:Safe Newspaper Vendor - coronavirus.jpg|thumb|A newspaper vendor in [[Tamil Nadu]], [[India]], wearing goggles, safety mask and hand gloves.]]
In India up to 53% of businesses have specified a certain amount of impact of shutdowns caused due to coronavirus on operations, as per a [[FICCI]] survey in March.<ref name=":4" /> By 24 April the [[Unemployment Rate|unemployment rate]] had increased nearly 19% within a month, reaching 26% unemployment across India, according to the 'Centre for Monitoring Indian Economy'.<ref name=":34" /> Around 140,000,000 (14 crores) Indians lost employment during the lockdown. More than 45% households across the nation reported an income drop as compared to the previous year.<ref name=":35" /><ref>{{cite web|url=https://www.businesstoday.in/current/economy-politics/india-unemployment-rate-hits-26-amid-lockdown-14-crore-lose-employment-cmie/story/401707.html|title=India's unemployment rate hits 26% amid lockdown, 14 crore lose employment: CMIE|date=22 April 2020|website=Business Today|access-date=24 April 2020}}</ref> Various business such as hotels and airlines cut salaries and laid off employees.<ref name=":2" /> Revenue of transport companies such as [[Ola Cabs]] went down nearly 95% in March–April resulting in 1400 layoffs.<ref>{{Cite web|title=Ola lays off 1,400 employees as revenue down by 95% in 2 months|url=https://www.livemint.com/companies/start-ups/ola-to-fire-1-400-employees-as-revenue-down-by-95-in-2-months-11589961627720.html|date=20 May 2020|website=Livemint|access-date=21 May 2020}}</ref> It was estimated that the loss to the tourism industry will be {{INRConvert|15000|c|lk=on|year=2020}} for March and April alone. [[Confederation of Indian Industry|CII]], [[ASSOCHAM]] and FAITH estimate that a huge chunk of the workforce involved with tourism in the country faces unemployment.<ref>{{cite web|title=Nirmala Sitharaman reviews sectors that may need intervention|url=https://www.hindustantimes.com/india-news/nirmala-sitharaman-reviews-sectors-that-may-need-intervention/story-KhFNT5NejEDB4F3K8RPM0H.html|last1=Jayaswal|first1=Rajeev|date=21 March 2020|website=Hindustan Times|access-date=21 March 2020}}</ref> Live events industry saw an estimated loss of {{INRConvert|3000|c|lk=on|year=2020}}.<ref name=":2" />

A number of young startups have been impacted as funding has fallen.<ref name=":15" /> A DataLabs report shows a 45% decrease in the total growth-stage funding ([[Series A round]]) as compared to Q4 2019.<ref name=":16" /> According to a [[KPMG]] report [[venture capital]] in Indian startups has fallen over 50% in Q1 2020 from Q4 2019.<ref>{{cite web|url=https://entrackr.com/2020/04/vc-investment-india-fell-to-2-2-bn-q1-20/|title=VC investments in India fell to $2.2 Bn in Q1 2020: Report|last1=Mittal|first1=Aarzoo|date=28 April 2020|website=Entrackr|access-date=29 April 2020}}</ref>

Electricity consumption has declined strongly after the national lockdown was enacted. It was nearly 30 percent below normal levels at the end of march and remained a quarter below normal levels in April. In May it was on an average 14 percent below normal and in June it was still 8 percent below normal. Lower electricity consumption implies lower economic activity. In the past, a unit of additional economic activity in India has been associated with 1.3 units additional electricity consumption. The economic impact has already been between $160 billion(5.6 percent of GDP)and $175 billion(6.0 percent of GDP).

The effect of COVID- 19 was devastating on Indian economy. Many people lost their jobs and livelihood because India went into nationwide curfew for 2 months straight. In addition to this, even government was badly affected as well as there were no funds with the government as everything was closed. It became so bad that at many places, government were not even able to pay income of government employees on time. Many teachers were not paid for more than two months. Also, educational department was highly affected. Many colleges were shut down straight for 3–4 months as most of them don't have enough resources to shift the whole platform online. In addition to this, many results of important exams were delayed and in some cases paper were not even marked. Overall India was badly affected by this Pandemic.

Government revenue has been severely affected with tax collection going down, and as a result the government has been trying to find ways of reducing its own costs.<ref name=":52" /> On 10 May 2020, Union Minister [[Nitin Gadkari]] said that some states didn't have enough money to pay salaries in the near future.<ref>{{Cite web|date=10 June 2020|title=India stares at Rs 10 lakh crore revenue loss as Covid-19 tally crosses 2.76 lakh|url=https://www.indiatoday.in/india/story/coronavirus-outbreak-economic-crisis-nationwide-tally-toll-1687705-2020-06-10|access-date=13 June 2020|website=India Today}}</ref> In April, former [[Reserve Bank of India]] chief [[Raghuram Rajan]] said that the coronavirus pandemic in India may just be the "greatest emergency since Independence",<ref name=":22">{{cite web|title="Greatest Emergency Since Independence": Raghuram Rajan On COVID-19|url=https://www.ndtv.com/india-news/greatest-emergency-since-independence-rbi-chief-raghuram-rajan-on-covid-19-2206716|last1=Ghosh|first1=Deepshikha|date=6 April 2020|publisher=NDTV|access-date=6 April 2020}}</ref> while the former [[Chief Economic Advisor to the Government of India]] said in April that India should prepare for a negative growth rate in FY21.<ref name=":36">{{cite web|title=We should plan for negative growth rate this FY, says Arvind Subramanian|url=https://indianexpress.com/article/india/express-adda-live-updates-arvind-subramanian-coronavirus-economy-recession-india-lockdown-6382855/|date=28 April 2020|website=The Indian Express|access-date=29 April 2020}}</ref>

The Indian economy was expected to lose over {{INRConvert|32000|c|lk=on|year=2020}} every day during the first 21 days of the lockdown, according to [[SME Rating Agency of India|Acuité Ratings]].<ref name=":23" /> [[Barclays]] said the cost of the first 21 days of shutdown as well as the previous two shorter ones will total to around {{INRConvert|8.5|lc|lk=on|year=2020}}.<ref name=":7" /><ref name=":24" /> [[Confederation of Indian Industry]] (CII) had sought an economic [[Stimulus (economics)|fiscal stimulus]] package of 1% of India's GDP amounting to {{INRConvert|2|lc|lk=on|year=2020}}.<ref>{{Cite news|date=22 March 2020|title=India Inc seeks fiscal stimulus, moratorium on debt repayment to mitigate coronavirus impact|work=The Economic Times|agency=Press Trust of India|url=https://economictimes.indiatimes.com/news/economy/policy/india-inc-seeks-fiscal-stimulus-moratorium-on-debt-repayment-to-mitigate-coronavirus-impact/articleshow/74759967.cms|access-date=23 March 2020}}</ref> The fiscal package and fiscal policies approach is being compared to what has happened in other countries such as Germany, Brazil and Japan.<ref>{{cite web|title=India Should Have Already Announced an Economic Package for Coronavirus|url=https://thewire.in/economy/interview-india-economic-package-coronavirus|last1=Srivas|first1=Anuj|date=22 March 2020|website=The Wire|access-date=23 March 2020}}</ref> [[Jefferies Group]] said that the government can spend {{INRConvert|1.3|lc|lk=on|year=2020}} to fight the impact of coronavirus.<ref name=":6">{{cite web|title=Coronavirus: Govt can spend $18 billion to fight virus impact, analysts say|url=https://www.livemint.com/news/india/coronavirus-govt-can-spend-18-billion-to-fight-virus-impact-analysts-say-11584949476261.html|date=23 March 2020|website=Livemint|access-date=23 March 2020}}</ref> [[Bloomberg L.P.|Bloomberg's]] economists say at least {{INRConvert|2.15|lc|lk=on|year=2020}} needs to be spent.<ref name=":6" /> Former CEA [[Arvind Subramanian]] said that India would need a {{INRConvert|10|t|lk=on|year=2020}} stimulus to overcome the contraction.<ref name=":36" />

=== Pre-pandemic slowdown ===
India had also been witnessing a pre-pandemic slowdown.<ref>{{Cite web|last=Kishore|first=Roshan|date=6 June 2020|title=Addressing pre-Covid issues to be crucial for India's recovery|url=https://www.hindustantimes.com/india-news/addressing-pre-covid-issues-to-be-crucial-for-india-s-recovery/story-KA18SAGU9Uvt0X4pCqAi6H.html|access-date=6 June 2020|website=Hindustan Times}}</ref> Even before the pandemic, since FY 2018–19, India's growth was falling, 8% in Q4 FY18 to 4.5% in Q2 FY20.<ref name=":56">{{Cite web|last1=Rajan|first1=Ramkishen|last2=Gopalan|first2=Sasidaran|date=30 March 2020|title=Covid-19: Another blow to India's economy|url=https://www.thehindubusinessline.com/opinion/covid-19-another-blow-to-indias-economy/article31208648.ece|access-date=12 June 2020|website=The Hindu @businessline}}</ref> In January 2020 itself, well before India's lockdown or reactions to the pandemic, the [[International Monetary Fund]] reduced India's GDP estimates for 2019 and also reduced the 2020 GDP forecast.<ref name=":56" /> The [[2016 Indian banknote demonetisation]] and [[Goods and Services Tax (India)|goods and services tax]] enactment in 2017 led to severe back to back disruptions in the economy.<ref name=":56" /> On top of this there had been numerous banking crises such as the [[Infrastructure Leasing & Financial Services]] crisis and government scheme failures such as that of '[[Make in India]]'.<ref name=":56" /> There was also a significant "income crunch" for both rural and urban sectors in the year prior to the lockdown.<ref>{{Cite web|last=Haq|first=Zia|date=10 June 2020|title=India stares at a long road to economic revival|url=https://www.hindustantimes.com/india-news/india-stares-at-a-long-road-to-economic-revival/story-SBgOdlnTkVJ1eOIZbVM1yN.html|access-date=13 June 2020|website=Hindustan Times}}</ref>

=== Ratings and GDP estimates ===
On 27 March, [[Moody's Investors Service]] (Moody's) revised its estimate of India's GDP growth for 2020 from 5.3% to 2.5%.<ref>{{cite web|title=Coronavirus: Moody's cuts India's 2020 GDP growth forecast to 2.5%|url=https://www.businesstoday.in/current/economy-politics/coronavirus-moodys-cuts-india-2020-gdp-growth-forecast-to-2-point-5-percent/story/399377.html|date=27 March 2020|website=Business Today|others=PTI|access-date=27 March 2020}}</ref> [[Fitch Ratings]] revised its estimate for India's growth to 2%. 'India Ratings & Research' also downgraded the FY21 estimate to 3.6%.<ref name=":25">{{Cite news|others=PTI|date=12 April 2020|title=World Bank sees FY21 India growth at 1.5-2.8%, slowest since economic reforms 30 years ago|work=The Hindu|url=https://www.thehindu.com/business/world-bank-sees-fy21-india-growth-at-15-28-slowest-since-economic-reforms-30-years-ago/article31322011.ece|access-date=13 April 2020|issn=0971-751X}}</ref> In April 2020, the [[World Bank]] and [[Credit rating agency|rating agencies]] downgraded India's growth for [[fiscal year]] 2021 with the lowest figures India has seen in three decades since India's [[Economic liberalisation in India|economic liberalization in the 1990s]].<ref name=":25" /><ref name=":26">{{cite web|title=World Bank sees FY21 India growth at 1.5-2.8%— slowest since economic reforms three decades ago|url=https://timesofindia.indiatimes.com/business/india-business/covid-19-causes-severe-disruption-to-indian-economy-says-world-bank/articleshow/75104070.cms|date=12 April 2020|website=The Times of India|access-date=13 April 2020}}</ref> On 12 April 2020, a [[World Bank]] report focusing on South Asia said that India's economy is expected to grow 1.5% to 2.8% for FY21.<ref name=":25" /> The World Bank report said that the pandemic has "magnified pre-existing risks to India's economic outlook".<ref name=":25" />   In mid-April the International Monetary Fund projection for India for the FY21 of 1.9% GDP growth was still the highest among [[G20|G-20]] nations.<ref>{{cite web|title=IMF projection for India's GDP growth highest in G-20, says RBI Governor Shaktikanta Das|url=https://www.indiatoday.in/business/story/rbi-governor-shaktikanta-das-indian-economy-covid19-imf-projection-gdp-growth-1667889-2020-04-17|date=17 April 2020|website=India Today|access-date=17 April 2020}}</ref> [[Confederation of Indian Industry]] (CII) estimated that India's GDP for FY21 will be between 0.9% and 1.5%.<ref>{{cite web|title=Coronavirus impact: CII pegs India's GDP growth between -0.9% to 1.5% for FY21|url=https://www.businesstoday.in/current/economy-politics/coronavirus-impact-cii-pegs-india-gdp-growth-between--09-to-15-for-fy21/story/401812.html|last1=Kumar|first1=Chitranjan|date=23 April 2020|website=Business Today|access-date=23 April 2020}}</ref>
{| class="wikitable floatright" style="text-align: center;"
|+GDP predictions for FY21 post announcement of economic package (May 2020)<ref name=":49" />
!SN
!Agency
!Estimate
!Ref
|-
|1
|Bernstein
| -7%
|<ref name=":49" />
|-
|2
|ICRA
| -5%
|<ref name=":49" />
|-
|3
|Goldman Sachs
| -5%
|<ref name=":49" />
|-
|4
|Nomura
| -5%
|<ref name=":49" />
|-
|5
|Fitch
| -5%
|<ref>{{Cite web|title=COVID-19 lockdown has left India staring at its first recession in 40 years, say experts|url=https://www.newindianexpress.com/business/2020/may/26/covid-19-lockdown-has-left-india-staring-at-its-first-recession-in-40-years-say-experts-2148244.html|website=The New Indian Express|access-date=28 May 2020}}</ref>
|-
|6
|SBI
|  -4.70%
|<ref name=":49" />
|-
|7
|CARE Rating
|  -1.5%-1.6%
|<ref name=":49" />
|}
On 28 April the former [[Chief Economic Advisor to the Government of India|Chief Economic Advisor (CEA) to the Government of India]] has said that India should prepare for a negative growth rate in FY21.<ref name=":36" /><ref name=":38">{{cite web|title=India needs a ₹10 rupee stimulus to tide over a contraction in GDP: Subramanian|url=https://www.livemint.com/news/india/india-should-plan-for-substantial-contraction-in-fy21-economy-former-cea-11588080616909.html|last1=Prasad|first1=Gireesh Chandra|date=28 April 2020|website=Livemint|access-date=29 April 2020}}</ref> On 22 May the RBI Governor Shaktikanta Das also said India's GDP growth will remain negative in FY21.<ref>{{Cite web|title=India's GDP growth in 2020-21 to remain in negative territory: RBI|url=https://www.livemint.com/industry/banking/india-s-gdp-growth-in-2020-21-to-remain-in-negative-category-rbi-11590122207688.html|last=Ray|first=Anulekha|date=22 May 2020|website=Livemint|access-date=24 May 2020}}</ref> Following the announcement of India's economic package numerous agencies downgraded their GDP predictions for FY21.<ref name=":49">{{Cite news|date=21 May 2020|title=A Bigger Hit on the Economy?|page=1|work=The Economic Times (ET Graphics)|url=https://epaper.timesgroup.com/|url-access=subscription|access-date=21 May 2020}}</ref> Ratings agency [[ICRA Limited|ICRA]] downgraded estimates to -5%,<ref>{{Cite news|last1=Noronha|first1=Gaurav|date=20 May 2020|title=India's GDP to see 5% contraction in FY21, says Icra|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/indias-gdp-to-see-5-contraction-in-fy21-says-icra/articleshow/75847028.cms|access-date=21 May 2020}}</ref> [[Goldman Sachs]] also predicted the same estimate of -5%. These revised GDP estimates signalled a deep recession.<ref>{{Cite web|title=Goldman Sachs: India's economy will shrink 45% this quarter and suffer a brutal recession this year|url=https://www.businessinsider.in/stock-market/news/goldman-sachs-indias-economy-will-shrink-45-this-quarter-and-suffer-a-brutal-recession-this-year/articleshow/75807045.cms|last1=Nagarajan|first1=Shalini|date=21 May 2020|website=Business Insider|access-date=21 May 2020}}</ref><ref>{{Cite web|title=Goldman report most damning|url=https://www.telegraphindia.com/india/goldman-on-economic-package-for-coronavirus-lockdown-narendra-modis-steps-smaller-than-upas/cid/1774089|date=19 May 2020|website=The Daily Telegraph|access-date=21 May 2020}}</ref> On 26 May, [[CRISIL]] made the following statement:<ref>{{Cite web|title=India facing its worst recession in current fiscal, says Crisil|url=https://www.livemint.com/news/world/india-facing-its-worst-recession-in-current-fiscal-says-crisil-11590493604178.html|date=26 May 2020|website=Livemint|others=PTI|access-date=27 May 2020}}</ref><ref>{{Cite news|date=27 May 2020|title=India facing its worst recession in current fiscal, says Crisil|work=The Economic Times|agency=Press Trust of India|url=https://economictimes.indiatimes.com/news/economy/indicators/india-facing-its-worst-recession-in-current-fiscal-says-crisil/articleshow/76004775.cms|access-date=27 May 2020}}</ref>

{{Quote|text=India's fourth recession since independence, the first since liberalisation and perhaps the worst to date, is here.|author=[[CRISIL]]|title=|source=}}[[State Bank of India]] research predicts a contraction of over 40% in the GDP in Q1 FY21.<ref>{{Cite news|date=27 May 2020|title=Economy may contract by over 40% in Q1: SBI Research|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/economy-may-contract-by-over-40-in-q1-sbi-research/articleshow/76022260.cms|access-date=28 May 2020}}</ref> For the states, the total loss due to COVID-19 is estimated at 13.5% of the total [[Gross state domestic product]].<ref>{{Cite web|title=SBI research sees GDP contracting over 40% for June quarter|url=https://www.livemint.com/news/india/sbi-research-sees-gdp-contracting-over-40-for-june-quarter-11590567687417.html|last=Kumar|first=Ravi Prakash|date=27 May 2020|website=Livemint|access-date=28 May 2020}}</ref><ref>{{Cite news|last=Dhasmana|first=Puneet Wadhwa & Indivjal|date=27 May 2020|title=Fitch Ratings, CRISIL, SBI Research see India economy shrinking in FY21|work=Business Standard India|url=https://www.business-standard.com/article/economy-policy/fitch-ratings-crisil-sbi-research-see-india-economy-shrinking-in-fy21-120052700029_1.html|access-date=28 May 2020}}</ref> The Ministry of Statistics released India's GDP estimates for Q4 FY20 at 3.1% while the overall GDP for FY20 is 4.2%.<ref name="Q4 gdp indianexpress">{{cite news |last1=Misra |first1=Udit |title=Explained: What deceleration in GDP growth rate tells us about state of Indian economy |url=https://indianexpress.com/article/explained/gdp-growth-rate-deceleration-tells-us-about-state-of-the-indian-economy-6433491/ |access-date=30 May 2020 |work=The Indian Express |date=30 May 2020}}</ref><ref name="Q4 gdp livemint">{{cite news |last1=Mishra |first1=Asit Ranjan |title=India's economy slumps, worst yet to come amid lockdown |url=https://www.livemint.com/news/india/india-s-gdp-growth-drops-to-3-1-in-march-quarter-11590754748943.html |access-date=30 May 2020 |work=Livemint |date=30 May 2020}}</ref> [[Krishnamurthy Subramanian]], the current CEA, said the GDP growth slowdown to 3.1% in Q4 FY20 is mainly due to the coronavirus pandemic effect on the Indian economy.<ref name=":55">{{Cite web|date=6 June 2020|title='All Previous Measures Lost Effect': CEA Warns of Recession if Economic Recovery Does Not Start Soon|url=https://www.news18.com/news/business/all-previous-measures-lost-effect-cea-warns-of-recession-if-economic-recovery-does-not-start-soon-2655873.html|access-date=6 June 2020|website=News18}}</ref> The CEA pointed out that the ratings of over 30 countries have also been downgraded.<ref name=":55" />

On 1 June, Moody's downgraded India's [[sovereign ratings]] to its lowest grade. Moody's clarified that while the rating downgrade was happening amid the coronavirus pandemic, "it was not driven by the impact of the pandemic", rather because of reasons such as "weak implementation of economic reforms since 2017" and "a significant deterioration in the fiscal position of governments (central and state)".<ref>{{Cite web|title=Explained: Why Moody's downgraded India's rating, what the implications may be|url=https://indianexpress.com/article/explained/why-moodys-downgraded-india-6437798/|last=Misra|first=Udit|date=2 June 2020|website=The Indian Express|access-date=2 June 2020}}</ref><ref>{{Cite web|title=Moody's Downgrades India's Sovereign Rating By One Notch|url=https://www.bloombergquint.com/business/moodys-downgrades-indias-sovereign-rating|date=1 June 2020|website=BloombergQuint|url-access=subscription|access-date=2 June 2020}}</ref> Moody's rating is now the same as ratings given by [[S&P Global Ratings]] and [[Fitch Ratings]], which also rate India with the lowest investment grade.<ref>{{Cite web|title=Moodys India Rating: Moody's downgrades India rating for 1st time in 22 yrs|url=https://timesofindia.indiatimes.com/business/india-business/moodys-downgrades-india-rating-for-1st-time-in-22-yrs/articleshow/76144694.cms|date=2 June 2020|website=The Times of India|access-date=2 June 2020}}</ref> In July, [[Jefferies Financial Group|Jefferies']] reaffirmed a 5% real GDP contraction. [[Nomura Holdings|Nomura]] gave the following estimates: -5.6% in Q3CY20, -2.8% in Q4CY20 and -1.4% in Q1-2021.<ref>{{Cite news|last=Wadhwa|first=Puneet|date=2020-07-24|title=Economic recovery in India hinges on moratorium duration: Chris Wood|work=Business Standard India|url=https://www.business-standard.com/article/economic-revival/economic-recovery-in-india-hinges-on-moratorium-duration-chris-wood-120072400264_1.html|access-date=2020-07-24}}</ref>

The contraction that India is expected to see in the FY21 will not be uniform, rather it will differ according to various parameters such as state and sector. Agriculture and government sectors are likely not to see any contraction.<ref>{{Cite web|last1=Kishore|first1=Roshan|last2=Jha|first2=Abhishek|date=13 June 2020|title=Economic impact of Covid-19 pandemic to vary in sectors|url=https://www.hindustantimes.com/india-news/economic-impact-of-covid-19-pandemic-to-vary-in-sectors/story-DIWjwnBZoON7ZUvgSMSFOL.html|access-date=15 June 2020|website=Hindustan Times}}</ref> On 1 September 2020, the [[Ministry of Statistics and Programme Implementation]] released the GDP figures for Q1 FY2021, which showed a contraction of 24%.<ref>{{Cite web|last=Gupta|first=Surojit|date=1 September 2020|title=GDP collapses 23.9% in Q1, worst among big economies|url=https://timesofindia.indiatimes.com/business/india-business/gdp-collapses-23-9-in-q1-worst-among-big-economies/articleshow/77860877.cms|access-date=2020-09-01|website=The Times of India|language=en}}</ref><ref>{{Cite web|last1=Misra|first1=Udit|last2=Iqbal|first2=Nushaiba|date=2020-09-01|title=India's GDP growth contracts 23.9%: What is the economics behind the math?|url=https://indianexpress.com/article/explained/gdp-contraction-23-9-the-economics-behind-the-math-6578046/|access-date=2020-09-01|website=The Indian Express|language=en}}</ref>
{{Bar chart
| title      = India's GDP growth rate since FY16<ref name="Q4 gdp indianexpress"/><ref name="Q4 gdp livemint"/>
| label_type = FY
| data_type  = GDP growth%
| data_max   = 10
| label2  = FY16 | data2  = 8 | comment2  = 
| label3  = FY17 | data3  = 8.3 | comment3  = +0.3%
| label4  = FY18 | data4  = 6.6 | comment4  = -1.4%
| label5  = FY19 | data5  = 6.1 | comment5  =  -0.5%
| label6  = FY20 | data6  = 4.2 | comment6  =  -1.9% est.
| label7  = FY21 | data7  = -5 | comment7  =  -9.2% est.
|float=right}}

=== Exports and imports ===
India's exports in April 2020 fell by -36.65% year-on-year,<ref>{{cite news|url=https://www.thehindu.com/business/Industry/merchandise-exports-drop-over-60/article31596022.ece |title= Merchandise exports drop over 60%  |website=The Hindu |date=15 May 2020}}</ref> while imports in April 2020 fell by -47.36% as compared to April 2019.<ref>{{Cite web|date=15 May 2020|others=Ministry of Commerce & Industry|title=INDIA'S FOREIGN TRADE: April 2020|url=http://pib.gov.in/Pressreleaseshare.aspx?PRID=1624102|access-date=15 June 2020|website=pib.gov.in}}</ref>
[[File:India exports April 2020 estimates.png|thumb|alt=|center|450x450px|India's exports fell across numerous sectors in April 2020 as compared to the same period last year.<ref>{{Cite web|date=15 May 2020|others=Ministry of Commerce & Industry|title=INDIA'S FOREIGN TRADE: April 2020|url=http://pib.gov.in/Pressreleaseshare.aspx?PRID=1624102|access-date=15 June 2020|website=pib.gov.in}}</ref>]]

=== Energy ===
Night lights and economic activity are connected. In Delhi, night light [[radiance]] fell 37.2% compared to 1–31 March 2019. This was the biggest fall for any metro in India. Bangalore fell 32% while Mumbai dropped by 29%.<ref>{{cite web|url=https://www.bloombergquint.com/business/night-lights-tell-the-story-of-dimming-economic-activity-across-india|title=Night Lights Tell The Story Of Dimming Economic Activity Across India|last1=Nahata|first1=Pallavi|date=11 April 2020|website=BloombergQuint|access-date=13 April 2020}}</ref> India's fuel demand in April 2020 as compared to the previous year fell nearly 46%. Consumption of fuel was the lowest since 2007. Cooking gas (LPG) sales rose ~12%.<ref>{{Cite news|last=Agencies|date=9 May 2020|title=Lockdown impact: Fuel demand in India plunged to historic lows in April|work=Business Standard India|url=https://www.business-standard.com/article/current-affairs/lockdown-impact-fuel-demand-in-india-plunged-to-historic-lows-in-april-120050900378_1.html|access-date=9 May 2020}}</ref> An [[International Energy Agency]] report in April estimated India's annual fuel consumption will decline 5.6% in 2020. Diesel demand will drop ~6%.<ref>{{Cite news|date=15 April 2020|title=India's annual fuel demand to decline 5.6% in 2020: IEA|work=The Economic Times|url=https://economictimes.indiatimes.com/industry/energy/oil-gas/indias-annual-fuel-demand-to-decline-5-6-in-2020-iea-says/articleshow/75158336.cms?from=mdr|access-date=9 May 2020}}</ref> By the first half of June 2020, India's fuel demand was 80-85% of what it was before the lockdown. However the Indian oil minister said that it would take a much longer time for the growth in demand to be restored to pre-COVID-19 levels.<ref>{{Cite web|date=2020-06-16|others=PTI|title=India's fuel demand reaches 80-85% of pre-Covid levels|url=https://auto.hindustantimes.com/auto/news/india-s-fuel-demand-reaches-80-85-of-pre-covid-levels-41592303794058.html|access-date=2020-06-17|website=Hindustan Times Auto|language=en}}</ref>

Oil prices dropped sharply in 2020 following the COVID-19 pandemic. Demand also fell sharply. By mid-May India had already filled its strategic storage including storing oil on ships across the world. India is now looking at storing oil in other nations including America.<ref name=":53">{{Cite web|title=India looks to store cheap oil in United States: Dharmendra Pradhan|url=https://www.livemint.com/industry/energy/india-looks-to-store-cheap-oil-in-united-states-dharmendra-pradhan-11590419485047.html|last=Verma|first=Nidhi|date=25 May 2020|website=Livemint|access-date=27 May 2020}}</ref> India also plans to increase its local strategic storage capacity for oil.<ref name=":53" />

=== Agriculture ===
A study during the first two weeks of May month by the [[Public Health Foundation of India]], [[Harvard T.H. Chan School of Public Health|Harvard T H Chan School of Public Health]] and the [[Centre for Sustainable Agriculture]] found that "10% of farmers could not harvest their crop in the past month and 60% of those who did harvest reported a yield loss" and that a majority of farmers are facing difficulty for the next season.<ref>{{Cite web|title=New Research: How lockdown has impacted Indian farmers, their yields|url=https://indianexpress.com/article/explained/how-coronavirus-lockdown-has-impacted-indian-farmers-their-yields-6421569/|last=Chishti|first=Seema|date=22 May 2020|website=The Indian Express|access-date=28 May 2020}}</ref> Due to logistical problems following the lockdown tea estates were unable to harvest the [[First flush tea|first flush]]. The impact of this on the second flush is not known. The entire Darjeeling tea based tea industry will see significant fall in revenue.<ref>{{cite web|url=https://www.thehindubusinessline.com/economy/agri-business/covid-19-lockdown-may-brew-trouble-for-tea-sector/article31199394.ece|title=Covid-19 lockdown may brew trouble for tea sector|last1=Bose|first1=Pratim Ranjan|date=29 March 2020|website=The Hindu @businessline|access-date=9 April 2020}}</ref> Tea exports could see a yearly drop up to 8% as a result.<ref>{{Cite news|last1=Rakshit|first1=Avishek|url=https://www.business-standard.com/article/economy-policy/indian-tea-exports-may-decline-by-up-to-8-over-covid-19-outbreak-120040700782_1.html|title=Indian tea exports may decline by up to 8% over Covid-19 outbreak|date=7 April 2020|work=Business Standard India|access-date=9 April 2020}}</ref> In March 2020, tea exports from India fell 33% in March as compared to March 2019.<ref>{{Cite web|date=27 May 2020|title=In pics {{!}} Economic impact of coronavirus pandemic in India as per CRISIL|url=https://www.moneycontrol.com/news/business/economy/in-pics-economic-impact-of-coronavirus-pandemic-in-india-as-per-crisil-5321281-4.html|access-date=15 June 2020|website=Moneycontrol}}</ref> During the lockdown, food wastage increased due to affected supply chains, affecting small farmers.<ref>{{Cite web|title=Is the Agricultural Package Addressing Challenges Small Farmers Face in a Pandemic?|url=https://thewire.in/agriculture/small-farmers-covid-19-package|last1=Singh|first1=Gurpreet|last2=Sharma|first2=Rajeev|date=22 May 2020|website=The Wire|access-date=28 May 2020}}</ref>

From 20 April, under new lockdown guidelines to reopen the economy and relax the lockdown, agricultural businesses such as dairy, tea, coffee, and rubber plantations, as well as associated shops and industries, reopened.<ref name=":28" /> By the end of April, {{INRConvert|17986|c|lk=on|year=2020}} had been transferred to farmers under the [[Pradhan Mantri Kisan Samman Nidhi|PM-KISAN]] scheme.<ref>{{Cite web|title=Rs 17,986 crore transferred to farmers amid Covid-19 lockdown: Agriculture minister|url=https://www.hindustantimes.com/india-news/covid-19-update-government-has-transferred-rs-17986-crore-to-farmers-since-march-24-says-minister-of-agriculture/story-pWWlHebUaEVF3shb6PvYSJ.html|date=29 April 2020|website=Hindustan Times|access-date=28 May 2020}}</ref> Odisha passed new laws promoting [[contract farming]].<ref>{{Cite news|last=Barik|first=Satyasundar|date=21 May 2020|title=COVID-19 impact: Odisha promotes contract farming system|work=The Hindu|url=https://www.thehindu.com/news/national/other-states/covid-19-impact-odisha-promotes-contract-farming-system/article31644389.ece|access-date=28 May 2020|issn=0971-751X}}</ref>

=== Manufacturing ===
Major companies in India such as [[Larsen & Toubro|Larsen and Toubro]], [[Bharat Forge]], [[UltraTech Cement]], [[Grasim Industries]], the fashion and retail wing of [[Aditya Birla Group]], [[Tata Motors]] and [[Thermax]] momentarily suspended or significantly reduced operations in a number of manufacturing facilities and factories across the country. [[iPhone]] producing companies in India also suspended a majority of operations. Nearly all two-wheeler and four-wheeler companies put a stop to production till further notice. Many companies have decided to remain closed till at least 31 March such as [[Cummins]] which has temporarily shut its offices across Maharashtra.<ref>{{cite web|url=https://www.financialexpress.com/industry/coronavirus-impact-india-inc-slips-into-sleep-mode/1908492/|title=Coronavirus impact: India Inc slips into sleep mode|date=25 March 2020|website=The Financial Express|access-date=25 March 2020}}</ref> [[Hindustan Unilever]], [[ITC Limited|ITC]] and [[Dabur India Limited|Dabur India]] shut manufacturing facilities except for factories producing essentials.<ref name=":7">{{Cite news|last1=Mudgill|first1=Amit|url=https://economictimes.indiatimes.com/markets/stocks/news/how-will-india-lockdown-play-out-for-economy-markets-4-scenarios/articleshow/74804087.cms|title=How will India lockdown play out for economy & markets: 4 scenarios|date=25 March 2020|work=The Economic Times|access-date=25 March 2020}}</ref> [[Foxconn]] and [[Wistron Corp.|Wistron Corp]], iPhone producers, suspended production following the 21 day lockdown orders.<ref>{{cite web|url=https://www.bloomberg.com/news/articles/2020-03-25/iphone-makers-suspend-india-production-due-to-lockdown|title=iPhone Makers Suspend India Production Due to Lockdown|last1=Wu|first1=Debby|date=25 March 2020|website=Bloomberg|access-date=25 March 2020}}</ref>

=== Stock markets ===
[[File:Indices NIFTY 50 (PERIOD 1 Jan 2020 to 19 May 2020) with labels.png|right|thumb|400x400px| Impact of COVID-19 on [[National Stock Exchange of India]] NIFTY 50 (1 Jan 2020 to 19 May 2020). "The [[NIFTY 50]] is NSE's benchmark broad based stock market index for the Indian equity market."]]
On 23 March 2020''',''' stock markets in India post worst losses in history.<ref name=":3" /> [[BSE SENSEX|SENSEX]] fell 4000 points (13.15%) and [[NIFTY 50|NSE NIFTY]] fell 1150 points (12.98%).<ref>{{Cite news|date=23 March 2020|title=Sensex crashes 4,000 points: What's behind market meltdown|work=The Economic Times|url=https://economictimes.indiatimes.com/markets/stocks/news/sensex-hits-10-lower-circuit-what-led-to-the-market-meltdown/articleshow/74768152.cms|access-date=23 March 2020}}</ref> However, on 25 March, one day after a complete 21-day lock-down was announced by the Prime Minister, [[SENSEX]] posted its biggest gains in 11 years, adding a value of  {{INRConvert|4.7|lc|lk=on|year=2020}} crore for investors.<ref name=":11" /><ref>{{cite web|title=Flipkart to Resume Shipping and Deliveries from Later Today, Confirms CEO|url=https://www.news18.com/news/tech/flipkart-to-resume-shipping-and-deliveries-from-later-today-confirms-ceo-2550957.html|last1=Das|first1=Shouvik|date=25 March 2020|website=News18|access-date=25 March 2020}}</ref> On 8 April, following positive indication from the Wall Street that the pandemic may have reached its peak in the US, the stock markets in India rose steeply once again.<ref>{{cite web|title=MARKET LIVE: Sensex leaps 1,000 pts, Nifty past 9k; auto stocks rally|url=https://www.business-standard.com/article/markets/market-live-markets-sensex-nifty-bse-nse-sgx-nifty-coronavirus-120040900142_1.html|date=9 April 2020|website=Business Standard|access-date=9 April 2020}}</ref><ref>{{cite web|title=Indian stock market indices rally over 3% amidst positive cues from global markets|url=https://www.businessinsider.in/stock-market/news/indian-stock-market-sensex-and-nifty-updates-april-9-2020/articleshow/75058871.cms|last1=Yadav|first1=Navdeep|date=9 April 2020|website=Business Insider|access-date=9 April 2020}}</ref> By 29 April, Nifty held the 9500 mark.<ref>{{cite news|date=29 April 2020|title=Stock Market Latest Updates: Sensex zooms 606 points, Nifty holds 9,500-mark; Hexaware Q1 net profit up 26.3% at Rs 175 cr|work=Firstpost|url=https://www.firstpost.com/business/stock-market-today-live-updates-share-market-latest-news-bse-sensex-nifty-coronavirus-lockdown-7-8310131.html|access-date=29 April 2020}}</ref>
[[File:Indices S&P BSE 500 Period Jan - 2015 to May - 2020.png|right|thumb|400x400px|Indices: S&P BSE 500 (Period Jan - 2015 to May - 2020). Open, High, Low, Close visible. Fall depicted in black. Rise depicted in white.]]

=== E-commerce ===
In the third week of March, [[Amazon (company)|Amazon]] announced that it would stop sale of non-essential items in India so that it could focus on essential needs.<ref name=":8">{{cite web|url=https://www.ndtv.com/india-news/amazon-to-stop-non-essential-sales-in-india-2200154|title=Amazon To Stop Non-Essential Sales in India|date=24 March 2020|publisher=NDTV|others=Reuters|access-date=25 March 2020}}</ref> Amazon followed the same strategy in Italy and France.<ref name=":8" /> On 25 March, [[Walmart]]-owned [[Flipkart]] temporarily suspended some of its services on its e-commerce platform and would only be selling and distributing essentials.<ref>{{cite web|url=https://gadgets.ndtv.com/internet/news/flipkart-services-suspended-india-coronavirus-lockdown-walmart-2200237|title=Flipkart Suspends Services as India Enters 21-Day Coronavirus Lockdown|last1=Sarwar|first1=Nadeem|date=25 March 2020|website=NDTV Gadgets 360|access-date=25 March 2020}}</ref> BigBasket and [[Grofers]] also ran restricted services, facing disruptions due to the lockdown.<ref>{{Cite news|last1=Shrivastava|first1=Aditi|url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/despite-govt-clearance-ecomm-cos-find-it-difficult-to-deliver-essentials/articleshow/74803036.cms|title=Despite govt clearance, ecomm cos find it difficult to deliver essentials|date=25 March 2020|work=The Economic Times|access-date=26 March 2020|last2=Peermohamed|first2=Alnoor}}</ref> [[Delhi Police]] began issuing delivery agents curfew passes to make it easier for them to keep the supply chain open.<ref>{{cite web|url=https://www.livemint.com/news/india/have-issued-passes-e-commerce-websites-delivery-agents-will-be-helped-delhi-police-11585129545453.html|title=Have issued passes, e-commerce websites' delivery agents will be helped: Police|date=25 March 2020|editor-last=Jagannath|editor-first=J.|website=Livemint|others=IANS|access-date=26 March 2020}}</ref> E-commerce companies also sought legal clarity related to defining "essentials".<ref>{{Cite news|last1=Peermohamed|first1=Alnoor|url=https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/covid-19-harried-etailers-look-to-deliver-the-goods/articleshow/74820615.cms|title=Covid-19: Amazon, Flipkart, others look to deliver the goods|date=26 March 2020|work=The Economic Times|access-date=26 March 2020}}</ref>

=== Defence ===
The [[Department of Military Affairs]] led by the [[Chief of Defence Staff (India)|Chief of Defence Staff]] postponed all capital acquisitions until the coronavirus pandemic recedes. No new major defense deals would be made in the beginning of the financial year 2020–21.<ref>{{cite web|url=https://timesofindia.indiatimes.com/india/covid-ties-govt-hands-no-big-defence-deal-for-now/articleshow/75337399.cms|title=Covid ties govt hands, no big defence deal for now|last1=Pandit|first1=Rajat|date=24 April 2020|website=The Times of India|access-date=24 April 2020}}</ref> While the delivery of [[S-400 missile system]]s won't be affected,<ref>{{cite web|url=https://theprint.in/defence/covid-19-pandemic-wont-affect-s-400-deliveries-indian-ambassador-in-russia/400331/|title=Covid-19 pandemic won't affect S-400 deliveries: Indian Ambassador in Russia|last=PTI|date=12 April 2020|website=ThePrint|access-date=24 April 2020}}</ref> the delivery of [[Dassault Rafale|Rafale fighter jets]] was reported to maybe being affected.<ref>{{cite web|url=https://www.janes.com/article/95512/covid-19-delivery-of-rafale-fighters-to-india-delayed-until-end-of-july|title=Covid-19: Delivery of Rafale fighters to India delayed until end of July {{!}} Jane's 360|last1=Bedi|first1=Rahul|date=15 April 2020|website=www.janes.com|access-date=24 April 2020}}</ref> However, on 24 March, France confirmed that there will be no delay in the delivery of the 36 Rafale jets.<ref>{{Cite web|title=No delay in supply of Rafale jets to India, says France|url=https://www.businesstoday.in/current/economy-politics/no-delay-in-supply-of-36-rafale-jets-to-india-says-france/story/404827.html|date=24 March 2020|website=Business Today|access-date=25 May 2020}}</ref><ref>{{Cite news|last=ANI|date=24 May 2020|title=There will be no delay in delivery of Rafale jets to India: France|work=Business Standard India|url=https://www.business-standard.com/article/defence/there-will-be-no-delay-in-delivery-of-rafale-jets-to-india-france-120052400837_1.html|access-date=25 May 2020}}</ref>

In May, the [[Chief of Defence Staff (India)|Chief of Defence Staff]] General [[Bipin Rawat]] again emphasized the need for India to minimize costly defense imports and boost domestic production.<ref name=":63">{{Cite news|date=10 May 2020|title=CDS General Bipin Rawat reiterates 'Make in India' for armed forces|work=The Economic Times|url=https://economictimes.indiatimes.com/news/defence/cds-general-bipin-rawat-reiterates-make-in-india-for-armed-forces/articleshow/75653805.cms|access-date=10 May 2020}}</ref><ref name=":64">{{Cite web|title=CDS Bipin Rawat: Forces must shun imports, go for 'Make In India', says Gen Bipin Rawat {{!}} India News - Times of India|url=https://timesofindia.indiatimes.com/india/forces-must-shun-imports-go-for-make-in-india-says-gen-bipin-rawat/articleshow/75652962.cms|last1=P|first1=Rajat|date=10 May 2020|website=The Times of India|access-date=10 May 2020}}</ref>

{{Quote|text="Covid-19 has affected everybody [...] have a major relook at our operational priorities and what we actually need. [...] boost 'Make in India' by hand-holding our domestic industry even if they deliver weapons with only 70% of the GSQRs (general staff qualitative requirements) in the beginning…given the opportunity, they will eventually deliver cutting-edge technology. [...] We are not expeditionary forces that have to deploy around the globe [...] we should not go in for large amounts of imports by misrepresenting our operational requirements"|title=|source=}}

During the announcement of the economic package, the Finance Minister announced a change in the FDI cap from 49% to 74% for defense, the corporatization of India's ordnance production and a list for the ban of select defense imports.<ref name=":47" />

=== State income and expenditure ===
State governments incurred huge losses to the extent of having to cut capital expenses as well as government plans in the near future and finding alternate ways to pay salaries. The Delhi government has fallen 90% short in tax collection as compared to 2019 and is planning to take loans and raise taxes in certain sectors.<ref>{{Cite web|title='We've to learn to live with Covid-19', says Delhi deputy CM Manish Sisodia|url=https://www.hindustantimes.com/india-news/we-have-to-learn-to-live-with-covid-19-as-we-did-with-dengue-or-tb-sisodia/story-1sARszxRiHRZLWk1PTBRrI.html|last1=Goswami|first1=Sweta|last2=Singh|first2=Shivani|date=4 May 2020|website=Hindustan Times|access-date=5 May 2020}}</ref> [[Maharashtra]] put a hold on all new capital works till March next year;<ref name=":33" /> spending under government development schemes has been reduced by 67% for the current fiscal.<ref>{{Cite web|title=Covid-19: Maharashtra freezes all spending on development projects until March, say reports|url=https://scroll.in/latest/961069/covid-19-maharashtra-freezes-all-spending-on-development-projects-until-march-say-reports|website=Scroll.in|access-date=5 May 2020}}</ref> The income of the Madhya Pradesh government has fallen by 85% in April and borrowing has increased.<ref>{{Cite news|last=Yadav|first=Sidharth|date=5 May 2020|title=Coronavirus {{!}} Madhya Pradesh caught between pandemic and penury|work=The Hindu|url=https://www.thehindu.com/news/national/mp-caught-between-pandemic-and-penury/article31512866.ece|access-date=31 May 2020|issn=0971-751X}}</ref>

The Delhi government as well as the Andhra Pradesh government imposed a 70%-75% "corona" extra tax on liquor.<ref>{{Cite web|title=Delhi To Charge 70% "Corona Fee" On Liquor From Today|url=https://www.ndtv.com/india-news/delhi-to-charge-extra-70-tax-on-liquor-from-tomorrow-amid-coronavirus-crisis-2223273|last1=Sharma|first1=Sharad|date=5 May 2020|editor-last=Achom|editor-first=Debanish|publisher=NDTV|access-date=9 May 2020}}</ref><ref>{{Cite news|date=5 May 2020|title=Delhi imposes 70% 'corona' tax on alcohol after crowding at shops|work=The Guardian|agency=Reuters|url=https://www.theguardian.com/world/2020/may/05/india-imposes-70-alcohol-tax-as-covid-19-lockdown-relaxed|access-date=9 May 2020|issn=0261-3077}}</ref><ref>{{Cite web|title=As states' income dries up, alcohol sales offer relief|url=https://www.livemint.com/news/india/as-states-income-dries-up-alcohol-sales-offer-relief-11588695668136.html|last1=Mehta|first1=Jhoomar|date=5 May 2020|website=Livemint|access-date=9 May 2020}}</ref> Excise duty on liquor is the third largest source of income for a number of states, nearly 10-15% of total tax collection for some states. The ban during the lockdown affected alcohol sales, in turn having a major effect on the state revenue.<ref>{{Cite web|title=What liquor sales revenues mean for states|url=https://www.thehindubusinessline.com/news/national/what-liquor-sales-revenues-means-for-states/article31507480.ece|last1=Edwin|first1=Tina|date=5 May 2020|website=The Hindu @businessline|access-date=9 May 2020}}</ref>

== Concerns and commentary ==
There were concerns as to where would the government find the funds to fight coronavirus and keep the economy alive.<ref name=":0">{{cite web|title=Where will Modi govt find money to fight coronavirus? $563 mn fund hopelessly small|url=https://www.businesstoday.in/current/economy-politics/where-will-modi-govt-get-money-to-fight-coronavirus-563-mn-fund-hopelessly-small/story/398918.html|last1=Dubey|first1=Rajeev|date=23 March 2020|website=Business Today|access-date=23 March 2020}}</ref> Experts suggested measures such as looking into [[Non-performing Asset|NPA]] norms, tax payments and income support to those in the unorganised sectors.<ref>{{cite web|title=Coronavirus in India: Economic task force yet to be formed; no decision on relief package|url=https://www.businesstoday.in/current/economy-politics/coronavirus-impact-fm-led-economic-task-force-takes-stock-of-key-ministries/story/398804.html|date=20 March 2020|website=Business Today|access-date=21 March 2020}}</ref> A direct cash transfer scheme for the most vulnerable is also being considered, as has happened in other countries.<ref>{{cite web|title=Coronavirus task force to meet this evening to work on relief package|url=https://www.cnbctv18.com/economy/coronavirus-task-force-to-meet-this-evening-to-work-on-relief-package-5522241.htm|date=20 March 2020|website=CNBCTV18|access-date=21 March 2020}}</ref>

On 8 April 2020, the managing director of [[Bajaj Auto]], [[Rajiv Bajaj]], wrote in an opinion piece in the [[The Economic Times|Economic Times]] that the "lockdown makes India weak rather than stronger in combating the epidemic," and that the current "arbitrary" lockdown was totally unsustainable and a "recalibration" is needed.<ref>{{cite web|title=Coronavirus Lockdown Makes India Weak Rather Than Stronger, Rajiv Bajaj Writes in ET|url=https://www.bloombergquint.com/business/coronavirus-lockdown-makes-india-weak-rather-than-stronger-rajiv-bajaj-writes-in-et|access-date=9 April 2020|website=BloombergQuint}}</ref><ref>{{Cite news|date=8 April 2020|title=India may have to sell itself out of this crisis, says Rajiv Bajaj|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/view-must-sell-ourselves-out-of-this-crisis/articleshow/75038503.cms|access-date=9 April 2020}}</ref> Rajiv Bajaj writes that "India may have to sell itself out of the coronavirus crisis".<ref>{{cite web|date=9 April 2020|title=India may have to sell itself out of this crisis, says Rajiv Bajaj - ET Auto|url=https://auto.economictimes.indiatimes.com/news/industry/india-may-have-to-sell-itself-out-of-this-crisis-says-rajiv-bajaj/75058899|access-date=9 April 2020|website=ETAuto}}</ref> Post the economic package, [[Barbara Harriss-White]] criticised the "shock tactics" of the Modi government during the COVID-19 pandemic, the same "shock tactics" that were seen during demonetization.<ref>{{Cite web|last1=Harriss-White|first1=Barbara|date=20 May 2020|title=The Modi Sarkar's Project for India's Informal Economy|url=https://thewire.in/political-economy/the-modi-sarkars-project-for-indias-informal-economy|access-date=20 May 2020|website=The Wire}}</ref>

The [[Press Information Bureau]] brought out a fact check that stories about a financial emergency being imposed in India are fake.<ref>{{cite web|title=Stop Panicking: PM Modi is not declaring an emergency; Stay Away from Fake News|url=https://mumbaimirror.indiatimes.com/stop-panicking-pm-modi-is-not-declaring-an-emergency-stay-away-from-fake-news/articleshow/74791920.cms|date=24 March 2020|website=Mumbai Mirror|access-date=25 March 2020}}</ref> A [[Financial Emergency in India|financial emergency]] has never been imposed in the history of India as yet.<ref name=":5">{{cite web|title=Is declaration of economic emergency inevitable, asks Subramanian Swamy|url=https://www.theweek.in/news/india/2020/03/21/is-declaration-of-economic-emergency-inevitable-asks-subramanian-swamy.html|date=21 March 2020|website=The Week|access-date=23 March 2020}}</ref> Numerous companies are carrying out measures within their companies to ensure that staff anxiety is kept at a minimum. [[Hero MotoCorp]] has been conducting video townhall meetings, [[Tata Group]] has set up a task force to make working from home more effective and the task force at [[Siemens]] also reports on the worldwide situation of the COVID-19 pandemic.<ref>{{Cite news|last1=Philip|first1=Lijee|last2=Vijayraghavan|first2=Kala|date=28 March 2020|title=India Inc sets up task forces as staff anxiety rises due to Covid-19 lockdown|work=The Economic Times|url=https://economictimes.indiatimes.com/news/company/corporate-trends/india-inc-sets-up-task-forces-as-staff-anxiety-rises/articleshow/74853966.cms|access-date=28 March 2020}}</ref>

=== Economic danger versus health risk ===
{{Quote box
| title = 
| quote = "India risks economic [[Seppuku|hara-kiri]] [suicide] if lockdown extended for much longer." (11 May 2020) <br>
"Lockdown extensions aren't just economically disastrous, as I had tweeted earlier, but also create another medical crisis" (25 May 2020)
| author = [[Anand Mahindra]]
| source = <ref>{{cite news |title=India will be risking economic hara-kiri, if lockdown extended for much longer: Anand Mahindra|url=https://timesofindia.indiatimes.com/auto/news/india-will-be-risking-economic-hara-kiri-if-lockdown-extended-for-much-longer-anand-mahindra/articleshow/75681136.cms |access-date=12 May 2020|work=The Times of India|date=11 May 2020}}</ref><ref>{{cite news |title=Lockdown extensions economically disastrous, create another medical crisis: Anand Mahindra |url=https://www.livemint.com/news/india/lockdown-extensions-economically-disastrous-create-another-medical-crisis-anand-mahindra-11590408449078.html |access-date=26 May 2020|work=Livemint|date=25 May 2020}}</ref>
| width = 250px
| fontsize = 95%
}}
In March, [[Adar Poonawalla]], CEO of [[Serum Institute of India]] said that "the economic danger of the outbreak was exponentially greater than its health risks".<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/healthcare/biotech/healthcare/coronavirus-vaccine-within-a-year-but-it-wont-be-100-effective/articleshow/74704452.cms?from=mdr|title=Coronavirus vaccine within a year but it won't be 100% effective|date=20 March 2020|work=The Economic Times|access-date=21 March 2020}}</ref> On 29 April, Indian billionaire [[N. R. Narayana Murthy|NR Narayana Murthy]] said that if the lockdown continues, India may see more deaths due to hunger than from the pandemic.<ref>{{Cite news|last1=Krishnan|first1=Raghu|url=https://economictimes.indiatimes.com/news/company/corporate-trends/lengthy-lockdown-will-kill-more-people-than-covid-murthy/articleshow/75459491.cms|title=Lengthy lockdown will kill more people than COVID: NR Narayana Murthy|date=30 April 2020|work=The Economic Times|access-date=30 April 2020}}</ref>

=== Supply chains and logistics ===
Following the lockdown, certain essential supply chains broke down.<ref>{{Cite web|url=https://www.unifiedinfotech.net/blog/how-covid-19-changed-ecommerce/|title=Pandemic effect: how Covid-19 changed ecommerce and supply chain industry|date=23 March 2020|work=Unified Infotech|access-date=23 March 2020}}</ref> [[Britannia Industries]], supporting the lockdown, urged the government to ensure inter-state movement of the raw material for the food processing industry was not hampered. The Managing director of Britannia stated that "if even one link in the supply chain is broken, the country could run out of stocks of packaged food in the next 7-10 days."<ref>{{Cite news|url=https://economictimes.indiatimes.com/industry/cons-products/fmcg/lockdown-britannia-urges-govt-to-issue-necessary-permits-to-people-in-food-processing-supply-chain/articleshow/74825647.cms|title=Lockdown: Britannia urges govt to issue necessary permits to people in food processing supply chain|date=26 March 2020|work=The Economic Times|access-date=26 March 2020}}</ref> Although inter-state travel has been banned, it doesn't apply to essentials, and in places like [[Maharashtra]] the state police are yet to streamline the process, disrupting supply chains.<ref>{{cite web|url=https://www.firstpost.com/india/coronavirus-outbreak-in-maharashtra-police-disrupting-farm-produce-supply-chains-impairs-farmers-lack-of-labour-stalls-harvest-8193061.html|title=Coronavirus Outbreak: In Maharashtra, police disrupting farm produce supply chains impairs farmers, lack of labour stalls harvest|last1=MN|first1=Parth|date=26 March 2020|website=Firstpost|access-date=26 March 2020}}</ref> Vidya Krishnan writes in [[The Atlantic]] that due to the lockdown even movement of medical goods were affected.<ref name=":19">{{cite web|url=https://www.theatlantic.com/international/archive/2020/03/india-coronavirus-covid19-narendra-modi/608896/|title=The Callousness of India's COVID-19 Response|last1=Krishnan|first1=Vidya|date=27 March 2020|website=The Atlantic|access-date=2 April 2020}}</ref>

On 29 March the government allowed the movement of all essential as well as non-essential goods across the country during the lockdown.<ref name=":13">{{Cite news|date=30 March 2020|title=Covid-19: Govt allows transportation of all essential, non-essential goods|work=Business Standard India|agency=Press Trust of India|url=https://www.business-standard.com/article/current-affairs/covid-19-govt-allows-transportation-of-all-essential-non-essential-goods-120033000055_1.html|access-date=30 March 2020}}</ref> The milk and newspaper supply chains are also allowed to function.<ref name=":13" />

=== Salaries ===
The Prime Minister on 19 March urged businesses and high income segments of society to take care of the economic needs of all those who provide them services.<ref>{{cite web|title=Government to India Inc: Pay salaries to employees on time|url=https://www.livemint.com/news/india/government-to-india-inc-pay-salaries-to-employees-on-time-11584634583073.html|last1=Mishra|first1=Asit Ranjan|date=19 March 2020|website=Livemint}}</ref> During the live telecast, he also appealed to families to not cut the pay of [[domestic help]].<ref>{{cite web|url=https://www.businessinsider.in/india/news/modi-appeals-people-to-not-cut-the-pay-of-domestic-help-and-others-who-cant-come-to-work/articleshow/74716721.cms|title=Modi appeals people to not cut the pay of domestic help and others who can't come to work|last1=Sindwani|first1=Prerna|date=20 March 2020|website=Business Insider|access-date=2 April 2020}}</ref> Following the lockdown, the government circulated advisories<ref>Joint Secretary (20 March 2020) [https://labour.gov.in/sites/default/files/Central_Government_Update.pdf Advisory]. Ministry of Labour and Employment, Government of India. Retrieved 4 April 2020.</ref> and directives ordering companies to keep paying employees among other things.<ref name=":17">{{Cite news|url=https://economictimes.indiatimes.com/news/company/corporate-trends/how-do-we-keep-paying-wages-wonders-stricken-industry/articleshow/74940685.cms|title=How do we keep paying wages, wonders stricken industry|date=2 April 2020|work=The Economic Times|access-date=2 April 2020}}</ref><ref name=":18">{{cite web|url=https://www.financialexpress.com/money/unable-to-join-office-ministry-of-labour-and-employment-issues-advisory-to-employers-amidst-coronavirus-crisis/1906909/|title=Concerned about pay cut, losing job amid Coronavirus crisis? Labour Ministry issues advisory to employers|date=23 March 2020|website=The Financial Express|access-date=2 April 2020}}</ref> The [[Ministry of Finance (India)|Ministry of Finance]] issued an Office Memorandum on 23 March 2020:<ref name=":18" /><ref>Additional Secretary to the Govt of India, Department of Expenditure (23 March 2020) [https://doe.gov.in/sites/default/files/Payment%20of%20Wages%20to%20Outsourced_Contractual%20Staff%20-%20COVID%2019.pdf Office Memorandum]. Ministry of Finance. Retrieved 4 April 2020.</ref>

{{Quote|text=[...] wherever such contractual, the casual and outsourced staff of Ministries/Departments and other organization of Government of India is required to stay at home in view of lockdown order regarding COVID-19 prevention [...] they shall be treated as "on duty" during such period of absence and necessary pay/wages would be paid accordingly. [...] <br />These instructions shall apply until April 30, 2020.|author=Addt Sect, Dept of Expenditure, Ministry of Finance|title=|source=}}

A few days later worries grew as to how wages could continue being paid and if the directive was legal or not.<ref name=":17" /> There were also concerns raised by migrant workers regarding the implementation of the orders as many daily-wagers have no records of being sacked or salaries being paid or deducted; the concerns also expand to uncertainty in the government's ability to enforce minimum wages under lockdown when it couldn't even do so during normal times.<ref>{{cite web|url=https://www.hindustantimes.com/india-news/migrants-question-implementation-of-govt-advisory-on-protecting-wages-jobs/story-bSJcx1l7ODCA1qgUBnG6qJ.html|title=Migrants question implementation advisory on protecting wages, jobs|last1=Dey|first1=Abhishek|date=1 April 2020|website=Hindustan Times|access-date=2 April 2020}}</ref>

On 15 May, the Supreme Court announced that the government should not take "coercive action" against employers for not paying wages during the lockdown. The court was commenting on 29 March government order.<ref>{{Cite news|last1=Correspondent|first1=Legal|date=15 May 2020|title=Coronavirus lockdown {{!}} Don't take coercive action against firms on full wages, SC tells govt|work=The Hindu|url=https://www.thehindu.com/news/national/coronavirus-lockdown-dont-take-coercive-action-against-firms-on-full-wages-sc-tells-govt/article31594248.ece|access-date=17 May 2020|issn=0971-751X}}</ref><ref>{{Cite news|last1=Rautray|first1=Samanwaya|date=16 May 2020|title=SC says no action for now against employers who don't pay full wages during lockdown|work=The Economic Times|url=https://economictimes.indiatimes.com/news/politics-and-nation/sc-stays-mha-order-on-paying-full-wages-during-lockdown/articleshow/75754751.cms?from=mdr|access-date=17 May 2020}}</ref>

=== Migrant workers and labour force ===
{{Main|Indian migrant workers during the COVID-19 pandemic}}
Due to the lockdown, daily-wage workers (the urban poor and migrant laborers) were left with no work. At the same time, the lockdown restrictions put a stop on the movement of buses and trains. Large numbers of migrant workers ended up walking back to their villages.<ref name=":19" /><ref>{{cite web|url=https://www.bloombergquint.com/global-economics/india-s-government-should-have-expected-coronavirus-migration|title=Coronavirus Exposes India's Official Callousness|last1=Sharma|first1=Mihir|date=1 April 2020|website=BloombergQuint|access-date=2 April 2020}}</ref>

Soon after a central government directive in late March, state governments set up 21,000 camps to house over 660,000 migrants and stop the exodus.<ref>{{Cite news|url=https://economictimes.indiatimes.com/news/politics-and-nation/more-than-21000-camps-set-up-for-over-660000-migrants-state-governments/articleshow/74920798.cms|title=More than 21,000 camps set up for over 6,60,000 migrants: State governments|date=1 April 2020|work=The Economic Times|access-date=2 April 2020}}</ref> Over 500 hunger relief centres were set up by the Delhi government by the last week of March.<ref name=":202">{{cite web|title=Delhi lockdown: Over 500 hunger relief centres set up for 4 lakh people|url=https://timesofindia.indiatimes.com/city/delhi/govt-to-give-2-meals-a-day-to-4-lakh-people-says-kejriwal/articleshow/74855058.cms|last1=Mathur|first1=Atul|date=28 March 2020|website=The Times of India|access-date=3 April 2020}}</ref> By 5 April 75{{nbsp}}lakh people were being provided food across the country in food camps run by the government and NGOs.<ref>{{Cite news|date=6 April 2020|title=Over 75 lakh being fed at food camps: MHA|work=The Tribune|url=https://www.tribuneindia.com/news/nation/over-75-lakh-being-fed-at-food-camps-mha-66223|access-date=12 April 2020}}</ref> As of 12 April, 37,978 relief camps and 26,225 food camps had been set up.<ref>{{Cite web|title=COVID-19 situation: Nearly 38,000 relief camps set up for migrant labourers, Govt to SC|url=https://indianexpress.com/article/india/covid-19-situation-nearly-38000-relief-camps-set-up-for-migrant-labourers-govt-to-sc-6380652/|date=27 April 2020|website=The Indian Express|access-date=19 May 2020}}</ref> Migrants in such camps in Kerala were provided with medical essentials such as masks, sanitizers, and medicines.<ref>{{cite web|url=https://theprint.in/India/rotis-mobile-recharges-carrom-boards-how-kerala-fixed-its-migrant-worker-anger/403937/|title=Rotis, mobile recharges, carrom boards – how Kerala fixed its migrant worker anger|last1=Arnimesh|first1=Shanker|date=18 April 2020|website=ThePrint|access-date=20 April 2020}}</ref>

Soon after the nationwide lockdown was announced in late March, FM Sitharaman announced a {{INRConvert|1.7|lc}} spending plan for the poor. This consisted of cash transfers and steps to ensure food security.<ref>{{Cite news|last1=Beniwal|first1=Vrishti|last2=Srivastava|first2=Shruti|date=26 March 2020|title=India Unveils $22.6 Billion Stimulus Plan to Ease Virus Pain|work=BlooombergQuint|url=https://www.bloomberg.com/news/articles/2020-03-26/india-unveils-22-6-billion-stimulus-to-counter-virus-fallout}}</ref> To help provide jobs and wages to workers, the average daily wages under the MGNREGA were increased to {{INRConvert|202|}} from the earlier {{INRConvert|182}}, as of 1 April.<ref>{{Cite news|date=27 March 2020|title=Centre releases Rs 4431 crore to clear pending wages under MGNREGA, to pay all dues by April 10|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/finance/centre-releases-rs-4431-crore-to-clear-pending-wages-under-mgnrega-to-pay-all-dues-by-april-10/articleshow/74849430.cms|access-date=27 May 2020}}</ref> On 14 May, FM Sitharaman further announced free food grains for the migrant workers, targeting 80&nbsp;million migrant workers by spending {{INRConvert|35|b}}.<ref name="NYTFreeFood14May">{{Cite news|agency=Reuters|date=14 May 2020|title=India to Provide Free Food Grains to Millions of Migrant Workers|work=The New York Times|url=https://www.nytimes.com/reuters/2020/05/14/world/asia/14reuters-health-coronavirus-india-stimulus.html|access-date=16 May 2020|issn=0362-4331}}</ref>

Railways transported 48,00,000 migrants back to their homes in the special trains allocated for them between 1 and 27 May.<ref>{{Cite web|title=3,736 Shramik Special trains ferried over 48 lakh migrants since May 1 {{!}} India News - Times of India|url=https://timesofindia.indiatimes.com/india/3736-shramik-special-trains-ferried-over-48-lakh-migrants-since-may-1/articleshow/76074661.cms|date=28 May 2020|website=The Times of India|others=PTI|access-date=31 May 2020}}</ref><ref>{{Cite web|title=Railways ferried 31 lakh people in Shramik Special trains|url=https://www.newindianexpress.com/nation/2020/may/22/railways-ferried-31-lakh-people-in-shramik-special-trains-2146701.html|date=22 May 2020|website=The New Indian Express|access-date=22 May 2020}}</ref> While this service was not initially free, with additional charges over the normal fares,<ref>{{Cite news|date=2 May 2020|title=Shramik special trains {{!}} Migrant workers, other stranded people to pay ₹50 more to get home|work=The Hindu|url=https://www.thehindu.com/news/national/shramik-special-trains-migrant-workers-other-stranded-people-to-pay-50-more-to-get-home/article31487251.ece|access-date=9 May 2020|issn=0971-751X}}</ref> the central government later made the Railways offer an 85% subsidy on the train fares, and the state governments funded the remaining 15%.<ref>{{Cite news|date=5 May 2020|title=Under Opposition Pressure, Modi Govt Issues Misleading Explanation on Migrants' Rail Fare Breakdown|website=The Wire|url=https://thewire.in/politics/opposition-pressure-modi-govt-migrant-workers-rail-fare}}</ref><ref>{{Cite web|title=Modi govt finally clarifies it's not paying Shramik Express fare, says states footing bill|url=https://theprint.in/india/governance/modi-govt-finally-clarifies-its-not-paying-shramik-express-fare-says-states-footing-bill/431410/|last=Dhingra|first=Sanya|date=28 May 2020|website=ThePrint|access-date=29 May 2020}}</ref> In the same time period, a total of 91 lakh migrants traveled on both trains and buses.<ref>{{Cite web|title=SC asks states not to take ticket fare from migrants, to provide food|url=https://indianexpress.com/article/india/migrant-crisis-who-is-paying-their-train-fare-asks-sc-6431076/|date=28 May 2020|website=The Indian Express|access-date=30 May 2020}}</ref>

The governments of Uttar Pradesh,<ref>{{Cite web|title=UP government suspends all labor laws except three to lure industrialists|url=https://www.thehindubusinessline.com/news/national/up-government-suspends-all-labor-laws-except-three-to-lure-industrialists/article31531867.ece|last1=Awasthi|first1=Prashasti|date=8 May 2020|website=Business Line|access-date=10 May 2020}}</ref><ref>{{Cite news|last1=Jha|first1=Somesh|date=7 May 2020|title=Covid-19 crisis: UP exempts biz from all but 4 labour laws for 3 years|work=Business Standard India|url=https://www.business-standard.com/article/economy-policy/up-govt-to-exempt-businesses-from-all-but-three-labour-laws-for-3-years-120050701531_1.html|access-date=10 May 2020}}</ref> Madhya Pradesh and Gujarat sought to temporarily revise their labour laws in early May with the purpose of attracting industries and investments. Labour unions criticized this as being harmful to the migrant workers while giving more authority to the employers.<ref>{{Cite news|date=9 May 2020|title=The new labour rules in Gujarat, Madhya Pradesh and Uttar Pradesh|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/policy/the-new-labour-rules-in-gujarat-madhya-pradesh-and-uttar-pradesh/articleshow/75646705.cms|access-date=10 May 2020}}</ref>

On 20 June 2020 the government launched the [[Garib Kalyan Rojgar Abhiyaan]] for the welfare of migrants.<ref name=":57" /> In July, ''[[LiveMint|Livemint]]'' reported that companies were having difficulties in bringing back the workforce. Even after incentives, many laborers are reluctant to travel back to urban areas.<ref>{{Cite web|date=2020-07-26|others=AFP|title=Indian companies struggle to lure migrant workers back|url=https://www.livemint.com/industry/manufacturing/indian-companies-struggle-to-lure-migrant-workers-back-11595756117031.html|access-date=2020-07-27|website=Livemint|language=en}}</ref>

=== Centre and state collaboration ===
Numerous center versus state tussles have taken place during the COVID-19 pandemic, having a socio-economic impact other that the immediate political impact. Some tussles are not directly related to the pandemic such as the Telangana Chief Minister over the Electricity (Amendment) Bill.<ref>{{Cite web|title=Telangana CM K Chandrasekhar Rao enraged as Centre ignores state's inputs on reviving economy|url=https://www.newindianexpress.com/states/telangana/2020/may/07/telangana-cm-k-chandrasekhar-rao-enraged-as-centre-ignores-states-inputs-on-reviving-economy-2140105.html|last=Balakrishna|first=VV|date=7 May 2020|website=The New Indian Express|access-date=31 May 2020}}</ref> Other tussles are directly related to the impacts of the pandemic such as the exodus of migrants.<ref>{{Cite web|title=Diktats from Delhi are harming India's lockdown – and friction between states doesn't help|url=https://scroll.in/article/957831/diktats-from-delhi-are-harming-indias-lockdown-and-friction-between-states-doesnt-help|last=Daniyal|first=Shoaib|date=1 April 2020|website=Scroll.in|access-date=31 May 2020}}</ref><ref>{{Cite web|title=Coronavirus in India: Centre-West Bengal in fresh tussle over return of stranded migrants, tally nears 60,000|url=https://www.indiatoday.in/india/story/coronavirus-in-india-centre-west-bengal-in-fresh-tussle-over-return-of-stranded-migrants-tally-nears-60-000-1676286-2020-05-10|date=10 May 2020|website=India Today|access-date=31 May 2020}}</ref> Liquor became another source of dispute.<ref>{{Cite web|title=Modi vs states: Alcohol tussle shows states battling for money to fight the coronavirus crisis|url=https://www.deccanherald.com/national/modi-vs-states-alcohol-tussle-shows-states-battling-for-money-to-fight-the-coronavirus-crisis-831258.html|date=29 April 2020|website=Deccan Herald|others=Bloomberg|access-date=31 May 2020}}</ref> Some states have had disputes with the centre related to how the lockdown should be implemented.<ref>{{Cite web|title=States tussle with Centre, Coronavirus testing, Students stranded in Kota|url=https://indianexpress.com/audio/3-things/states-tussle-with-centre-coronavirus-testing-students-stranded-in-kota/6371907/|date=21 April 2020|website=The Indian Express|others=3 Things Episode 834|access-date=31 May 2020}}</ref>

The Modi government, in view of the coronavirus pandemic, suspended [[Members of Parliament Local Area Development Scheme]] (MPLADS) for two years. This action has been called problematic in many ways, including causing a centralisation of power, being anti-federal in nature, and having an effect on local level development and MP influence at micro levels of the society to handle distress.<ref>{{cite web|url=https://theprint.in/opinion/suspending-mplads-for-coronavirus-stab-at-indian-democracy/407935/|title=Suspending MPLADS funds for coronavirus crisis is another stab at Indian democracy|last1=Jha|first1=Manoj|date=24 April 2020|website=ThePrint|access-date=25 April 2020}}</ref><ref>{{cite web|url=https://www.theweek.in/news/india/2020/04/06/opposition-parties-hit-out-at-govt-over-mplads-decision-say-will-hit-development-works.html|title=COVID-19: Opposition fumes over Modi govt decision to suspend MPLADS funds|website=The Week|access-date=25 April 2020}}</ref> There have been calls for halting the {{INRConvert|20000|c|lk=on|year=2020}} redevelopment of the central vista project in Delhi instead.<ref>{{cite web|url=https://www.theweek.in/news/india/2020/04/06/opposition-parties-hit-out-at-govt-over-mplads-decision-say-will-hit-development-works.html|title=COVID-19: Opposition fumes over Modi govt decision to suspend MPLADS funds|date=6 April 2020|website=The Week|others=PTI|access-date=25 April 2020}}</ref><ref>{{cite web|url=https://www.businesstoday.in/current/economy-politics/coronavirus-in-india-why-suspension-of-mplads-is-problematic/story/400771.html|title=Why suspension of MPLADS is problematic in corona times?|last1=Mondal|first1=Dipak|date=12 April 2020|website=Business Today|access-date=25 April 2020}}</ref><ref>{{cite web|url=https://www.newindianexpress.com/opinions/2020/apr/25/union-government-should-rethink-central-vista-project-2134979.html|title=Union Government should rethink Central Vista project|last1=Katyal|first1=Anita|date=25 April 2020|website=The New Indian Express|access-date=25 April 2020}}</ref>

During the exit of the lockdown there has been a lack of centre and state collaboration as well as with local authorities. This has been visible in the handling of migrant labour; now that companies are restarting, there is a labour shortage.<ref>{{Cite news|last1=Vijayraghavan|first1=Kala|last2=Philip|first2=Lijee|date=2 June 2020|title=India Inc battles worker shortage, policy flip-flops|work=The Economic Times|url=https://economictimes.indiatimes.com/news/company/corporate-trends/india-inc-battles-worker-shortage-policy-flip-flops/articleshow/76145674.cms|access-date=2 June 2020}}</ref>

== Economic recovery ==
In the beginning of May, [[Duvvuri Subbarao]], a former [[List of governors of the Reserve Bank of India|RBI governor]], said that India could look forward to a V-shaped recovery.<ref>{{Cite web|title=India can expect V-shaped recovery post coronavirus crisis, says former RBI governor Subbarao|url=https://www.businesstoday.in/current/economy-politics/india-can-expect-a-v-shaped-recovery-post-coronavirus-crisis-says-former-rbi-governor-subbarao/story/403397.html|last1=Sharma|first1=E Kumar|date=10 May 2020|website=Business Today|access-date=11 May 2020}}</ref> A V-shaped recovery is the best outcome.<ref name="Bhusnurmath">{{Cite news|last=Bhusnurmath|first=Mythili|date=4 May 2020|title=View: How will the economic recovery shape up? Likely scenarios|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/policy/view-how-will-the-economic-recovery-shape-up-likely-scenarios/articleshow/75523369.cms?from=mdr|access-date=6 June 2020}}</ref> [[Arthur D. Little]], an international consulting firm, has suggested that India will most probably see a W-shaped recovery.<ref>{{Cite web|last1=Maitra|first1=Barnik|last2=Kuruvilla|first2=Thomas|last3=Rajeswaran|first3=Arvind|last4=Singh|first4=Ashutosh|date=18 May 2020|title=INDIA: Surmounting the economic challenges of COVID-19|url=https://www.adlittle.com/en/india-surmounting-economic-challenges-covid-19|access-date=6 June 2020|website=Arthur D Little}}</ref><ref>{{Cite web|date=21 May 2020|title=How India's economy will emerge from the Covid-19 crisis|url=https://www.consultancy.in/news/3037/how-indias-economy-will-emerge-from-the-covid-19-crisis|access-date=6 June 2020|website=consultancy.in}}</ref> Mythili Bhusnurmath writes in ''[[The Economic Times]]'' that U- shaped recovery is the most likely followed by an L-shaped recovery.<ref name="Bhusnurmath"/> [[CRISIL]] chief economist says if things go well, that if the virus is contained, we can expect a V- recovery, otherwise it will end up as a U-recovery.<ref>{{Cite news|last=Noronha|first=Gaurav|date=1 June 2020|title=Post-Covid scenario: Swoosh, pipe, Z, L & W… shape of our future|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/post-covid-scenario-swoosh-pipe-z-l-w-shape-of-our-future/articleshow/76126134.cms|access-date=6 June 2020}}</ref>

In the second week of May, companies started preparations for restarting operations. Some companies opened offices with the maximum permitted strength of 33% while others took a more cautious approach of as low as five per cent.<ref>{{Cite news|last1=Bhattacharyya|first1=Rica|last2=Mandavia|first2=Megha|last3=Verma|first3=Prachi|last4=Pramanik|first4=Ayan|date=12 May 2020|title=India Inc getting back to office very cautiously|work=The Economic Times|url=https://economictimes.indiatimes.com/news/company/corporate-trends/india-inc-getting-back-to-office-very-cautiously/articleshow/75684749.cms|access-date=12 May 2020}}</ref> The beginning of June saw companies further reopen and making plans to reopen.<ref>{{Cite news|date=4 June 2020|title=Recession looms as India reopens after lockdown|work=BBC News|url=https://www.bbc.com/news/world-asia-india-52905093|access-date=6 June 2020}}</ref><ref>{{Cite web|last=Bhattacharya|first=Ananya|title=Social distancing apps and facial recognition are the new normal at India's IT firms|url=https://qz.com/india/1859782/infosys-tech-mahindra-preparing-to-reopen-offices-amid-covid-19/|access-date=6 June 2020|website=Quartz India}}</ref> A study by Elara Securities Inc. found that five Indian states, Kerala, Punjab, Tamil Nadu, Haryana and Karnataka, are contributing 27% to India's GDP as India emerges from a total lockdown.<ref>{{Cite web|last=Nag|first=Anirban|date=2 June 2020|title=These 5 States Are Leading India's Economic Recovery From Lockdown|url=https://www.ndtv.com/india-news/coronavirus-lockdown-these-5-states-are-leading-indias-economic-recovery-from-lockdown-2239211|access-date=6 June 2020|publisher=NDTV}}</ref><ref>{{Cite web|date=2 June 2020|others=Niyati Singh|title=How five states in India are leading economy to recovery from lockdown|url=https://www.hindustantimes.com/india-news/how-five-states-in-india-are-leading-economy-to-recovery-from-lockdown/story-TMqx6WJ5q7LBqxxZKOKURO.html|access-date=6 June 2020|website=Hindustan Times|publisher=Bloomberg}}</ref> By mid-June, unemployment levels were back to pre-lockdown levels.<ref name=":58" /> Online sales reached pre-COVID-19 level sales by June end.<ref name=":59">{{Cite web|date=2020-06-23|title=Some signs of a fast recovery|url=https://economictimes.indiatimes.com/blogs/et-editorials/some-signs-of-a-fast-recovery/|access-date=2020-06-30|website=Economic Times Blog|language=en-US}}</ref> [[Hindustan Unilever]] registered pre-COVID-19 levels in sales in late June.<ref name=":59" /> On 2 July 2020, ''[[The Times of India]]'' reported that a number of economic indicators such as the manufacturers [[Purchasing Managers' Index|purchasing managers' index]], goods movement, GST collections, electricity usage and [[rail freight transport]] showed significant improvement as compared to previous months.<ref>{{Cite news|last1=Aulakh|first1=Gulveen|last2=Sharma|first2=Yogima Seth|last3=Saluja|first3=Nishtha|last4=Suneja|first4=Kirtika|date=2020-07-02|title=Rebound gathers pace as most indicators show improvement|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/indicators/rebound-gathers-pace-as-most-indicators-show-improvement/articleshow/76739625.cms?from=mdr|access-date=2020-07-04}}</ref>

On 24 July 2020 [[Ajay Bhushan Pandey]], the Finance Secretary of India, said that the "Indian economy could revive sooner than we expect" while Tarun Bajaj, the [[Economic Affairs Secretary]] said that he expects a [[Recession shapes|v-shaped]] recovery.<ref name=":60">{{Cite news|date=24 July 2020|title=Indian economy could revive sooner than we expect, says Finance Secretary|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/finance/indian-economy-could-revive-sooner-than-we-expect-says-finance-secretary/articleshow/77138225.cms|access-date=2020-07-24}}</ref> Localised intermittent shutdowns in July were seen to negatively affect aspects of the country's economic recovery.<ref name=":60" /><ref>{{Cite news|date=19 July 2020|title=Intermittent lockdowns in several states disrupt FMCG firms' momentum, July output|work=The Economic Times|agency=PTI|url=https://economictimes.indiatimes.com/industry/cons-products/fmcg/intermittent-lockdowns-in-several-states-disrupt-fmcg-firms-momentum-july-output/articleshow/77047158.cms?from=mdr|access-date=2020-07-24}}</ref> On 29 July 2020, the [[Cabinet of India]] passed the [[National Education Policy 2020|National Educational Policy 2020]] aimed at strengthening the economy.<ref name=":61" /> By 13 September 2020, [[Nomura Holdings|Nomura]] India's Business Resumption Index showed that economic activity was nearly back to pre-lockdown levels.<ref name=":44" /> On 24 September 2020, [[The Economic Times|Economic Times]] reported that while speaking at the ET Global Summit, [[Kevin Sneader]], global managing partner of McKinsey and Co. said that, "many economists have been talking about 'V', 'U' and 'K' shape recoveries ever since the COVID-19 pandemic began. Yet, in all likelihood, there could be an 'X' shaped recovery for global economies, including India."<ref>{{Cite news|last=Dave|first=Sachin|title=Indian economy may not see V-shaped recovery: Kevin Sneader, Managing Partner, McKinsey & Co|work=The Economic Times|url=https://economictimes.indiatimes.com/news/economy/finance/indian-economy-may-not-see-v-shaped-recovery-kevin-sneader-managing-partner-mckinsey-co/articleshow/78288614.cms|access-date=2020-09-28}}</ref>

== References ==
{{reflist|colwidth=30em}}

== Further reading ==

* {{Cite book|url=https://books.google.com/books?id=5sjpDwAAQBAJ|title=Impact Of Covid – 19 Crisis On The Global Economy And Other Sectors Worldwide|publisher=Idea Publishing|year=2020|isbn=9789389988932|editor-last=Mallya|editor-first=Prita D.}}
* {{Cite book|last1=Sahoo|first1=Mukunda Chandra|url=https://books.google.com/books?id=BgrfzQEACAAJ|title=Covid-19 and the Indian Economy: Impact and Response|last2=Sahoo|first2=Niranjan|publisher=New Century Publications|year=2020|isbn=9788177085174}}
*{{Cite journal|last1=Chaudhary|first1=Monika|last2=Sodani|first2=P. R.|last3=Das|first3=Shankar|date=11 August 2020|title=Effect of COVID-19 on Economy in India: Some Reflections for Policy and Programme|url=https://journals.sagepub.com/doi/full/10.1177/0972063420935541|journal=Journal of Health Management|volume= 22, Issue 2, 2020|issue=2|pages=169–180|doi=10.1177/0972063420935541|s2cid=221105673|via=SAGE|doi-access=free}}

=== News ===
* <small>Pallavi Nahata (13 April 2020). [https://www.bloombergquint.com/business/in-charts-the-emerging-economic-impact-of-a-nationwide-lockdown In Charts: The Emerging Economic Impact Of A Nationwide Lockdown]. [[BloombergQuint]] {{Locked content}}</small>
* <small>Shivani Sharma, Mohsin Shaikh  (17 April 2020). [https://www.businesstoday.in/current/graphics/infographic-coronavirus-india-economy/story/401325.html Infographic: How coronavirus has hurt Indian economy]. [[Business Today (India)|Business Today]]</small>
* <small>[[Muhammad Yunus]] (5 May 2020) [https://theprint.in/opinion/muhammad-yunus-dont-plan-for-economic-recovery-post-covid-redesign-it-from-scratch/414357/ Muhammad Yunus: Don't plan for economic 'recovery' post-Covid. Redesign it from scratch]. ThePrint.</small>
*<small>[[Karan Thapar]] (11 June 2020). [https://thewire.in/video/karan-thapar-pronab-sen-interview Watch | Economy to Shrink 12.5%, 50 Million to Lose Jobs: Former Chief Statistician]. The Wire.</small>

=== Reports/ Think-tank reports ===
* <small>Yamini Aiyar, Avani Kapur et al. (21 April 2020) Redesigning India's Social Protection Financing Architecture to meet the Challenge of COVID-19. [[Centre for Policy Research]]</small>
* <small>Ashwin Parulkar and Mukta Naik (27 March 2020) A Crisis of Hunger: a ground report on the repercussions of COVID-19 related lockdown on Delhi's vulnerable populations. [[Centre for Policy Research]]</small>
* <small>Deloitte (2020) [https://www2.deloitte.com/in/en/pages/consumer-business/articles/impact-of-covid-19-on-consumer-business-in-india.html Impact of COVID-19 on consumer business in India. An analysis of the consumer retail sector (including food and beverage, apparel and footwear, beauty), automotive, travel, and hospitality services]. [[Deloitte Touche Tohmatsu]] India LLP. [https://web.archive.org/web/20200604193519/https://www2.deloitte.com/in/en/pages/consumer-business/articles/impact-of-covid-19-on-consumer-business-in-india.html Archived] from the original on 4 June 2020.</small>
*<small>Barnik Maitra, Thomas Kuruvilla et al. (May 2020) [https://www.adlittle.com/sites/default/files/reports/adl_india_surmounting_covid-19.pdf INDIA: Surmounting the economic challenges of COVID-19. A 10-point programme to revive and power India's post COVID-19 economy]. [[Arthur D. Little]]. [https://web.archive.org/web/20200606060944/https://www.adlittle.com/sites/default/files/reports/adl_india_surmounting_covid-19.pdf Archived] from the original on 6 June 2020.</small>
*<small>CII Research (22 April 2020) [https://www.cii.in/PublicationDetail.aspx?enc=zuvkFMUeRQ5DOr34VHgU+v5y56Ta54MvmXm8xaglUxc= A Plan for Economic Recovery]. [[Confederation of Indian Industry]] (CII). {{Registration required}}</small>

=== Atmanirbhar Bharat package ===
{{smalldiv|
*Ministry of Finance (13 May 2020). [https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051717.pdf Aatmanirbhar Bharat Abhiyaan Part-1: Businesses including MSMEs]. Government of India. [https://web.archive.org/web/20200612115945/https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051717.pdf Archived] on 12 June 2020.
*Ministry of Finance (14 May 2020). [https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051751.pdf Aatmanirbhar Bharat Abhiyaan Part-2: Poor, including migrants and farmers]. Government of India. [https://web.archive.org/web/20200612120655/https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051751.pdf Archived] on 12 June 2020.
*Ministry of Finance (15 May 2020). [https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051736.pdf Aatmanirbhar Bharat Abhiyaan Part-3: Agriculture]. Government of India. [https://web.archive.org/web/20200612121248/https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051736.pdf Archived] on 12 June 2020
*Ministry of Finance (16 May 2020). [https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051784.pdf Aatmanirbhar Bharat Abhiyaan Part-4: New Horizons of Growth]. Government of India. [https://web.archive.org/web/20200613054629/https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051784.pdf Archived] on 13 June 2020.
*Ministry of Finance (17 May 2020). [https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051740.pdf Aatmanirbhar Bharat Abhiyaan Part-5:  Government Reforms and Enablers]. Government of India. [https://web.archive.org/web/20200613054925/https://cdnbbsr.s3waas.gov.in/s3850af92f8d9903e7a4e0559a98ecc857/uploads/2020/05/2020051740.pdf Archived] on 13 June 2020.
}}
{{Economy of India}}
{{COVID-19 pandemic}}
{{COVID-19 pandemic in India}}
{{United States–Commonwealth of Nations recessions}}

{{DEFAULTSORT:Economic impact of the 2019-20 coronavirus pandemic in India}}
[[Category:Impact of the COVID-19 pandemic in India]]
[[Category:2020 in India]]
[[Category:Economy of India]]
[[Category:2020 in Indian economy]]
[[Category:Economic history of India]]
[[Category:Economic impact of the COVID-19 pandemic]]