A report has suggested that these localized lockdowns In some of the major economic hubs will cost the economy an average of USD 1.25 billion per week and may also erode 140 bps from the nominal GDP of Q1Fy22. And in the case the restrictions shall remain in place until May, the cumulative loss of economic as well as commercial activity could be around USD 10.5 billion or around 34 bps of nominal GDP, said the British brokerage firm Barclays.
India is currently facing the highest new Covid 19 case load more than the US and Brazil. OnTuesday, the country registered daily infection spike of more than 1.62 lakh cases and 879 deaths.
As per the data from the Union health ministry, the total caseload is at 1.37 crore and the death has reached a 1.71 lakh. There now have been announced mobility restrictions in economically important cities including Mumbai and Delhi. Also, there has been enforced a fresh 15-day lockdown in the state of Maharashtra.
Now increasing lockdowns as well as night curfews will cost the economy USD 1.25 billion per week, up from USD 0.52 billion a week earlier.
This shall on a quarterly basis amount to be even more- a 140 bps loss of nominal GDP., said Barclays in a report. Furthermore, in case the curbs remain in place till May end, cumulative loss in activity can be around USD 10.5 billion or around 0.34 percent of nominal GDP, the chief economist at Barclays India said in a report i.e. co-authored with Shreya Sodhani.