Know, what effect does GDP downfall have on the life of the common man?

New Delhi,

Employment business has been adversely affected after the implementation of the lockdown in the harsh Corona period. Negative GDP growth in particular is under discussion. However, not only India but many countries of the world are disturbed by the outbreak of Kora epidemic. In the process of protecting people from the Corona virus, jobs have been wiped out. So now the worry of negative growth is starting to bother me. GDP is the gross domestic product which fluctuates according to the circumstances but has proved to be very detrimental to Corona. In India, the government started opening lockdowns gradually after June, but business is still not on track. Cases of coronavirus infection continue to rise even after lockdown.

Under these circumstances, the RBI has warned that GDP growth will remain negative, so experts believe that the Koro crisis is likely to reduce India's GDP from 5 per cent to 15 per cent. Even if the situation in Corona remains under control, a reduction of 3 to 4 per cent is certain. Although the World Bank had earlier projected a 7.5 per cent decline in India's GDP, it is unlikely to improve. It is important to know what effect the decline in GDP or negative growth has on the life of the common man. In this way, even if there is no direct effect of GDP going down, it proves that the life of a man is difficult. Unemployment rises when the economy of any country goes into recession. People seem to save money by reducing costs. Panic stops spending. A similar trend is seen in corporate business.

According to the Center for Monitoring Indian Economy, the biggest impact of the Corona epidemic has been on employment, with youth being the biggest victims. During the Corona lockdown, 3 million people lost their jobs in July alone, and 1 million lost their jobs in May. Of these, more than 60 per cent were young people under the age of 20. According to a source, between April and July 2020, there was a decrease of 1.11 crore jobs as compared to last year. With the opening of the lockdown in June, employment of 4 million people increased, but again in July, 3 million people lost their jobs. The report also states that young people are less experienced so they can be easily fired. Due to the lockdown, companies have stopped hiring employees, which has led to a decline in employment opportunities, as well as an increase in wages for small and large companies.