Unambiguously, India is going to suffer a big loss due to Novel Coronavirus (COVID – 19) Pandemic. There is a big cost which India already paying and has to pay even more now. Indian Rupee slid 3.5% in the first quarter of 2020. Also, India is badly suffering from capital flight like many other nations. As per the recent announcement, Central bank has opened up government bonds for foreign investors instead of an against policy. India has never been in favour of such foreign investments as India has a checkered history with foreign investors. It is not in its nature to invite foreign investments to fulfil domestic financial losses.
India has always believed and adopted a self-reliance policy. And, this semi-socialist policy is in place since independence. Thus, this new shift in India’s foreign policy takes place amid its GDP declining growth rate. Also, this new plan for an inaugural offshore sovereign bond provoked a wave of controversy last year. During this ongoing pandemic crisis, “India’s response to the pandemic will play an important part in determining its ability to attract foreign capital,” said Marcelo Assalin, head of emerging debt at fund manager William Blair. “If India’s policymakers demonstrate its ability to both contain the outbreak and manage the socio-economic implications of doing so, foreign investors would be interested in investing in India long-term.
The world’s 5th largest economy is suffering through Capital flight. As per statistics, around $15 Billion left the Country’s stock and bonds in March, which is the most in emerging Asia. While, China has been assiduously courting foreign investors for years and overhauling its market regulations, ease of doing business and addressing investors’ concerns proactively. 21-day lockdown due to Coronavirus has closed the world’s 5th biggest economy and still, India neither has a robust plan to fight against Coronavirus nor an adequate Health care system.
It is surely a very difficult situation for India to cope up with and people are still counting over their extensive financial losses due to the ongoing 21-day lockdown. India is one of the biggest Pharmaceuticals exporters is no longer producing or exporting their medicines or drugs amid pandemic crisis. A delegation of pharmaceutical companies approached the government to open up its exports before it’s too late as exporters are sure that China will take over this opportunity if they do not come back. And, Indian Rupee was on record low at 76.27 on March 23.
Simultaneously, things have been badly affected day by day and there is no solution seems there by now. Government of India needs to come up with a steady plan which works in this situation and save the economy anyhow. This is a hard time in India when the Indian Economy is derailing its path and people are feared with its exponentially declining growth rate. Government is assuring its citizens but has not been able to do something effective by now which boost its economic growth and could save millions of Jobs who are at stake now.