Impact of Covid-19 on Economic indicators

Impact of Covid-19 on Economic indicators of India


Course Name: LD9718 Research Methods and Analytics for Business Practice


Student’s ID: 21043166

Tutor’s Name: Dr. Sumesh Dadwal

Table of Contents

1. Introduction

1.1 Background

The Covid-19 epidemic has delivered a major impact on the global economy. The sudden advent of the pandemic has led the governments to take a number of initiatives with the purpose of avoiding the further spread of the “Covid-19 virus”. In wake of the pandemic, businesses have faced major difficulty to continue their operation, and most of the economic activities have been shut down for the sake of public health. The term economic indicator is associated with the measurement of the macroeconomic performance which includes, GDP, investment, international trade, consumption etc. and stability which includes prices, money supply, budgets and the balance of payments. According to Vitenu-Sackey and Barfi (2021), mostly the data published from the governments and non-profit organisations or universities are the most reliable information on economic indicators.

GDP is considered the most accurate indicator of the size of the economy and the growth rate of GDP is considered the best indicator when it comes to a best economic indicator. Closure of primary industries has led India to face a period of under city as the GDP of India has crashed by 23.9% after the notice of lockdown (Ozili and Arun, 2020). The Indian economy has displayed the worst economic performance during this period and the GDP growth rate of India was below 10%. Almost all the sectors of India have been adversely impacted as the internal demand and export has sharply plummeted. This sharp economic hit all over the globe has caused the poorest households to face the highest negative impact.

1.2 Problem Statement

Economic indicators are very crucial aspects from economic growth to price hikes and unemployment everything is determined by this aspect. With the help of determining economic indicators, it is understandable how the economy is doing overall. Covid-19 has affected the economic performance of India massively (Li et al., 2021). This analysis will help businesses and investors to look for opportunities in the market and help them to make effective strategies to combat the adversities.

1.3 Aim and Objective

The main aim of the report is to analyse the economic indicators before the advent of Covid-19 and during and after the effect of Covid-19 in India.

To highlight the indicators of data analysis like national debt per capita, Inflation, GDP per capita, national income, equity market, liquidity status, human development index, equity market, stock market

To develop an understanding of the trends and future implications on the national economy of India

To understand the overall position of the Indian economy through the period of transition.

1.4 Research Questions

How the data analysis indicators are performing in India?

What are the current trends and future implications for the national economy?

What is the overall position of the Indian economy throughout the phase of transition?

1.5 Rationale

Economic indicators offer an overview of the economic health of a nation, which helps to understand the employment opportunities and economic growth of a nation. Understanding various aspects of the economic indicator will help businesses to look for effective strategies to reduce the adversity and investors will gain insight to understand the investment possibilities inside the nation. Furthermore, insight can be gained into the overall health of the economy of India (Abdurakhmanovaet al., 2020).

2. Literature Review

2.1 Impact of Covid-19 on the Global Economy

According to Maital and Barzani (2020), the global economy has been rapidly hampered during the period of a pandemic. During the phase of combat with the Covid-19, governments all over the globe have faced a high amount of economic need in order to protect their people. During the same period, corporations have acquired massive support from the governments. This massive amount of borrowing has led to the rise of global debt at a historic level, which has risen to $19.5 trillion. As per various early estimates, the major economies all over the globe will lose 2.9% of their GDP. In the year “2020”, the GDP worldwide was valued at “84.54 trillion U.S dollars” which denotes that “a 4.5%” drop has been experienced in the monetary development resulting in almost2.96 a trillion U.S dollars of lost financial yield. This has further led to an increase high rise in prices in different countries and interest rates have been raised in a surprising manner.

Ibn-Mohammed et al. (2021) highlighted, as government struggle with new “lockdown steps” to fight the virus’s transmission, nationwide economies and corporations are calculating the consequences. The worth of pension and personal term deposits can be affected by large changes in stock exchanges when firms’ stocks are purchased and sold. Subsequent of the introduction of the first vaccination in November, the leading stock markets of Asian and US have recovered, but the “FTSE” stayed in the adverse zone. When the economy expands, it usually equals more revenue and more employment. Oziliand Arun (2020) opined, this is computed by comparing the percent difference in gross national product, or the value of a product produced, over 3 months or a year. As per the International Monetary Fund, the world financial system would decrease by “4.4% in 2020”. As per the organization, the decline is the worst ever since “Great Depression of the 1930s”. In the year 2020, “China” is considered as the major market to grow. It amplified by “2.3 percent”. “The IMF”, conversely, predicts a “5.2 percent” recovery in 2021. It will be powered principally by nations like “India” and Chiba, which are expected to raise at “8.8% and 8.2%, respectively.”

2.2 Understanding the Future Economic Trends in Post Covid-19 World

Barnes (2020) highlighted worldwide growth is predicted to pick up to 5.6 per cent this year, due to the resilience of chief economies alike the US and “China”. While GDP predictions for almost every area of the planet have been adjusted upward for “2021”, some people are still dealing with COVID-19 and its anticipated lengthy impact. Despite this year’s recovery, global GDP is expected to be “3.2 percent” lesser in 2021 than which was predicted before pandemic, and per capita Gross national in several developing economies is anticipated to stay below pre-COVID-19 levels for certain period. As the disease worsens, it will alter the global economy’s path.

Fu, Zhangand Wang (2020) stated, rising international demands and stronger commodity prices are projected to stimulate growth amongst emerging markets to 6% this year. Nonetheless, the future is fraught with uncertainty. A longer-lasting disease, a surge of corporate failures, financial strains, or even social instability could all stymie the recovery. Likewise, improved COVID-19 elimination and indirect effects from established growth in the economy may culminate in more promising growth acceleration. Ciravegna and Michailova (2022) discussed global inflation, which has risen in pace with the booming economy and is expected to continue rising through the rest of the year while being within most countries’ target levels.

3. Research Methodology

3.1 Research Philosophy

It is the belief through which a researcher gathers all the information, analyse and utilised what is called the research approach. A philosophical perspective is very necessary as it is utilised in order to gain comprehension of the underlying causes, motivations and opinions. Research philosophy offers insight into the problem which helps the researcher to build a hypothesis or idea for the research (Horne, 2021). Generally, research philosophy consists of four different types of research, which are, positivism, pragmatism, realism and interpretivism. Based on the nature of the study, the researcher will choose a pragmatism research philosophy. Pragmatism philosophy finds answers based on what will work best in the process of investigation. Through the help of this philosophy, the researcher will be able to evaluate the existing beliefs and can find the truths in a practical way.

3.2 Research Approach

The research approach is associated with the processes and plans for research, which span from the stages of comprehensive assumptions to thorough approaches of gathering data, explanation and examination. Opting for the right research approach benefits a researcher to find a way for conducting a study. The research approach can be classified into three divisions, such include, deductive approach, inductive and abductive approach. For this particular study, the researcher will opt for a deductive research approach (Mohajan, 2018). In deductive research, the researcher will study the existing theories and test these theories. The researcher will be able to measure notions quantitatively and there will be an option to simplify study findings to a specific level.

3.3 Research Design

Research design is associated with the framework of techniques and research methods, which is determined by the researcher. Basically, it is the method of organising and collecting data which is applied by the researcher to a study or in a project. It is the research design which allows the researcher to enjoy the smooth sailing of different research operations. It ensures the research is efficient and helps the researcher to bring out maximum information just by spending a nominal expense of money, time and effort.

There are various types of research design, among the five most popular research designs have been mentioned, such are, descriptive, correlational, experimental, diagnostic, and explanatory research design. Among these, explanatory research, the design will be chosen by the researcher (Pandey and Pandey, 2021). Through the help of explanatory research design, the researcher will be able to explore, explain and expand research theories and existing ideas. Furthermore, this research design will assist the researcher to elaborate on unexplored areas of a specific subject and the researcher will be able to find out the missing pieces.

3.4 Data Collection

The process through which relevant data are gathered from various relevant sources in order attains the research answer to the determined research questions. This is a systematic process of attaining observations and measurements and analysing the accurate data. Choosing the right data collection method is very crucial as it leads the researcher to make decisions based on the available information and helps them to understand the helpfulness of the information, which will assist the researcher to carry forward the research study. The data collection method can be divided into two groups: primary and secondary data collection methods (Snyder, 2019). In order to fulfil the objective of the research, the researcher will choose the mixed data collection method. In this regard, the researcher will conduct a survey, which a primary quantitative tool and a secondary data collection from scholarly sources.

3.5 Data Analysis

Data analysis is the most significant part of a research, which summarises all the collected information. It includes interpreting data, which has been attained through analytical and logical reasoning in order to understand the patterns, trends and relationships. The main aim of data analysis is to clans, transform, inspect and model data with the aim of bringing out new information, suggesting a conclusion and assisting in decision-making. There are multiple types of data analysis techniques, such are, exploratory, causal, mechanistic, predictive, statistical, casual and Thematic data analysis techniques etc. Thematic data analysis will be opted by the researcher will be able to utilise a large amount of data and can recognise the trends (Cr, 2020).

3.6 Ethical Considerations

Ethical principles are the bundle of values and principles while doing human affairs. The researcher must adhere to these principles while conducting the research. While conducting the survey, the researchers will ensure informed consent and confidentiality. The researcher will respect the right to confidentiality and all the legal requirements in terms of data protection.

4. Research Timeline















Chapter 1: Introduction Chapter

Chapter 2: Literature review

Chapter 3: Methodology

Chapter 4: Data Collection

Chapter 5: Research findings

Chapter 6: Conclusion and recommendations

Chapter 7: Finalising Documents for submission

5. Conclusion

This particular proposal has emphasised the areas of various economic indicators in the context of the post-pandemic era. The economy of a nation is of great significance as it is the main driving factor of a nation which determines the lifestyle of the people residing inside the country. The pandemic has impacted the global economy to a great extent. The proposal has looked upon all the areas of economic indicator which has been impacted during the period of Covid19.


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