Coronavirus-Impact on The Economy

This corona epidemic spread across the world has destroyed the entire economy in all countries. The percentage of unemployment went up. Many small and big company is on the verge of sinking. Overall, the figures for this year’s economy have been shocking

How the Coronavirus started from China has affected the economy of India and other countries of the world, this is an important question. China will not tell the growth rate of its GDP this year, but the news is not good for many countries including India. Reserve Bank of India i.e. RBI has also acknowledged that India’s GDP growth could be negative in the year 2020-21. That is, the economy can go to minus instead of growing.

The RBI believes that the economy has been negatively affected due to the lockdown, and the states which account for about 60 per cent of the country’s GDP are in the Red and Orange zones, hence economic activities have been affected in these states. These states include Maharashtra, Tamil Nadu, Gujarat, Andhra Pradesh, Rajasthan and Uttar Pradesh. Like India, the economy of many other countries of the world has also become weak.

India must reduce its dependence on China

According to a survey conducted by the Dubai Chamber of Commerce, about 70 per cent of Dubai companies may be closed within the next 6 months. The survey has been conducted among 1,228 CEOs.

Despite making concessions in the lockdown, about 38 million people in the US have become unemployed. Russia’s economy may also shrink by 5 per cent this year. Japan’s economy has also decreased by 3.4 per cent and Japan has formally gone into an economic downturn. Due to Coronavirus, the economy of the entire world is estimated to have a loss of about 660 lakh crores.

By destroying the world with the coronavirus, China was thinking that now a big opportunity has been created for it. In the midst of the recession, Chinese companies had invested in different countries of the world, bought their stake in big companies, and started planning to capture them. But there is this old saying that one who digs a pit for others, one day he himself falls in the same pit. Many countries like India had already understood China’s move, now America has reversed China’s bets. In the US, the Senate there, as we have the Rajya Sabha here, has passed a bill, which will lead to the exit of many Chinese companies from the American stock market.

To do business in the stock market, every company will now have to tell that the government of any other country does not have any kind of control over it. For this, the company will have to get an audit done by an accounting agency in the US and finally a certificate will have to be obtained from the entity that monitors the stock market. Only then will she be able to do business in the US stock market and will be able to raise money from American investors.

If a company has not given complete information about itself for three consecutive years, then such companies will be delisted from the stock market. After the enactment of such a law in the US, it is quite possible that all those Chinese companies which are under the control of the Chinese government, such as Petro-China, China Telacom, Aluminum Corporation of China, China Petroleum, will exit the US stock market.

About 600 Chinese companies are listed in the US stock market, that is, they do business in the stock market. Many of them are government and many private companies. But after the introduction of this bill, now private companies of China are also scared. China’s technology company Baidu has made a plan to de-list itself from the American stock market with the bill.

source-DNA news