2 major global ratings agencies have downgraded India’s GDP (Gross Domestic Product) rate of growth for 2020 in two days. Both have attributed the cut in India’s economic process forecast to the spread of novel coronavirus. And, India is that the only country likely to pay a significant economic cost of novel coronavirus pandemic. Moody’s on Tuesday marginally weigh down India’s GDP rate of growth for 2020 from its February projection of 5.4 per cent to five.3 per cent. Moody’s had already slashed the expansion forecast from 6.6 per cent to five.4 in February. On the opposite hand, S&P Global Ratings lowered India’s growth forecast of India from 5.7 per cent to five.2 per cent for 2020. The agency said not just India but the full world can be in a very deep recession under the impact of novel coronavirus pandemic. The problem is larger for India particularly because the novel coronavirus pandemic hit the planet when it absolutely was already in a very prolonged phase of economic slowdown. The country had just registered a seven-year low GDP rate of growth of 4.7 per cent in September-December 2019 quarter when novel coronavirus hit world’s economy beginning from the world manufacturing and provide hub of China. Novel coronavirus pandemic is already causing shutdowns in sector after sector. The travel and tourism industry is staring down the barrel with little light at the tip. This has impacted the hotel industry badly. Even the medical sector, a provider of fine amount of employment, has been badly hit in India. Though official records will take time to come back out, industry estimates in India suggest that the aviation sector has seen up to 75 per cent drop by international bookings and 20 per cent in domestic bookings. Layoffs had already begun by February. Major agency Expedia laid off 3,000 employees globally to compensate the losses caused by novel coronavirus outbreak then.

 The us has seen sudden spike in layoffs across the country. Reports indicate the sharpest rise in unemployment within the US since the good Recession of 1929-30. Some 45,000 workers have applied for unemployment benefits in Ohio within the US, over 15,000 in New Jersey and another 8,000 in Connecticut. this can be scary as all of them suggest layoffs. Similar reports have come from Spain, Norway, China, South Korea, Italy and a bunch of other countries. India too has its share of layoffs. Sporadic reports of layoffs thanks to novel coronavirus outbreak are pouring in but there’s no consolidated official record of the identical. Experts believe that hiring in services sector especially the IT field are hit by up to 30 per cent thanks to novel coronavirus outbreak in India. India has stop working most of its shopping malls and cinema halls in big cities, advised people to remain home the maximum amount as possible. Major economic events like the Indian Premier League are deferred or curtailed. of these have employment consequences. According to a report the Centre for Monitoring Indian Economy (CMIE) released within the first week of March, the percent within the shadow of novel coronavirus outbreak in India hit a four-month high of seven.78 per cent. Growth projections for India are declining within the past eight-nine months. Almost every revise forecast by firms has downgraded the GDP projection. According to the most recent report of SBI Research released on Tuesday, the novel coronavirus-induced lockdowns could bring down India’s GDP by almost 1 mathematical notation (0.9 per cent). This comes with a virtue of a 5 per cent inoperability expenses in industries. The SBI Research paper says the impact can be larger in 2020-21. There is a rush over to announce economy boosters. The US has announced multi-billion dollar impetus and rate cuts, many countries in Europe have announced tax cuts, the RBI in India didn’t alter the rates to take care of stability within the wake of novel coronavirus outbreak but it’s going to announce a cut of up to 50 basis points in April to provide a fillip to the market. Stock markets the planet over are crashing, wiping out crores of rupees. In India, the Sensex has lost around 10,000 points in but a month. The accurate impact of this coronavirus pandemic remains months from assessment but the contagion looks set brand new global recession.