CURRENT AFFAIRS

Detailed explanation-1: -The GDP growth had crashed 23.9% in response to the centre’s no notice lockdown. India’s GDP shrank 7.3% in 2020-21. This was the worst performance of the Indian economy in any year since independence. As of now, India’s GDP growth rate is likely to be below 10 per cent.

Detailed explanation-2: -International trade plunged in 2020 but recovered sharply in 2021. While total trade flows are now comfortably above pre-pandemic levels, trade impacts across specific goods, services and trade partners are highly diverse, creating pressures on specific sectors and supply chains.

Detailed explanation-3: -The economic impact of the COVID-19 pandemic in India is largely disruptive. The growth of the economy has slowed down due to shutdown of different productions channels. Reverse migration of workforce and consequent shortage of labour, resulted in further deceleration of economic growth.

Detailed explanation-4: -Sectors most affected include construction, manufacturing, and contact-intensive services (i.e., trade, transport, and hospitality). Consistent with their weaker liquidity position prior to the pandemic, the share of MSME debt-at-risk increases more than for large firms under the baseline and two adverse scenarios.