India’s response to COVID-19 was good
India imposed several measures to combat COVID-19
photo of Taj Mahal photo – Free India Image on Unsplash
Last year, India was at the center of the news when the COVID-19 variant Delta took the nation by storm and caused hundreds of thousands of infections and thousands of deaths per day. This was the second COVID-19 wave in the large country. The third wave followed soon after in the beginning of 2022. Daily new cases and deaths rose but today the situation has stabilized, and the pandemic seems to be ebbing.
The government did take measures to halt the spread of the virus. However, globally it ranked 37 in terms of its resilience against it, right before Indonesia and after Vietnam. Its overall resilience score according to Bloomberg is 66.4 percent out of 100. Needless to say, the effect on the Indian economy was harsh – but not only there. The Indian Rupee took a hard blow, having a substantial effect on forex trading around the world. Let’s try to better understand the implications of that, and to see whether and how this situation could have been avoided.
Key Covid-19 statistics about India
India has provided 136 vaccine doses per 100 persons, and its lockdown was mild and received a score of 52. In total, there were over 43 million cases of COVID-19 in India, and over half a million deaths. The large population in the country may explain why the rate of vaccine doses to the number of people was less than optimal.
Measures taken by Modi government against COVID-19
Back in March 2020, the prime minister Modi involved several ministries in its response to the virus. The government set up quarantine and treatment facilities around the country. The objective was to contain the virus as effectively as possible.
The government also wanted to avoid panic and ensure calmness among the public. Logistically, authorities worked to supply key items and avoid shortages, with a focus on medical supplies and equipment. The government encouraged people to take preventive measures such as social distancing and wearing masks, among others, to slow down the spread of the virus.
Economic measures by the Indian government against COVID-19
To tackle the economic side of the crisis, Modi announced back in March 2020 the launch of the COVID-19 Economic Response Task Force which included members from various governments.
An economic relief package worth a tenth of India’s Gross Domestic Product was announced almost immediately. 20 trillion Rupees were allocated to help various vulnerable segments of people and businesses. This impacted the country’s economy in many ways. Equities, for example, took a hit but then they recovered. With India being one of the world’s biggest economies, it was inevitable for this to be felt in almost all other economies around the world – mainly in terms of supply and demand, but not only.
Later on, lockdowns and mandatory mask wearing were imposed as measures to combat the virus, as the number of new cases skyrocketed. Although people still debate whether lockdowns are effective or not, their economic impact is severe especially in countries like India where people’s livelihood can be affected.
The government also categorized areas based on infection rates, red zones had doubling rates and high number of new cases, orange zones had fewer cases, whereas green zones had no new cases in the last three weeks.
Summary
India’s response to COVID-19 may have been less than optimal, but it still ranked ok considering the severity of the situation in the country in addition to the high pollution and poverty rates. The government was criticized in some areas and praised in others. Overall, the situation now seems to be much better, but considering geopolitical turmoil globally, markets are still shaken up and caution is warranted.