Maharashtra lockdown hits Indian economy hard

In order to prevent the spread and spread of the epidemic, Maharashtra, India's largest regional economy and fastest-growing industrialized state, implemented lockdown restrictions, which dealt a severe blow to the Indian economy.

Maharashtra accounts for more than 50% of the country's daily coronavirus cases. On April 4, 57,074 new cases were reported, the highest single-day spike since the outbreak began.

In order to prevent and control the epidemic, the Maharashtra government has implemented a blockade. People are not allowed to go out at night and on weekends, and can only carry out limited activities on weekdays. The blockade will last until April 30.

The increasing number of new cases and lockdown restrictions in Maharashtra pose a huge threat to Indian businesses and the economy.

Looking at the consequences of the lockdown restrictions in Maharashtra , there may be an economic impact of Rs 400 crore. Data shows that the hotel, trade and transportation sectors in the region will suffer the greatest impact, with an impact of 0.32% on the state's GVA (gross value added), and GDP growth is expected to be revised down to 10.7-10.9% from 11-11.2% a week ago.

"Maharashtra has implemented a complete lockdown and overall production and consumption will be affected under such circumstances," Care Ratings said.

The rating agency said the state GVA is expected to be Rs 13.78 lakh crore in FY22 , with Maharashtra accounting for around Rs 2.07 lakh crore, but this will fall by about 2% due to the lockdown restrictions.

Losses in trade, hotels and transport

From a sectoral perspective, Care Ratings said trade, hospitality and transport will take a hit of Rs 15,772 crore, followed by financial services, real estate and professional services, which will incur losses of Rs 9,885 crore.

Changes in consumer demand

Care Ratings said that as daily activities have been greatly restricted, overall consumer demand will also change, affecting certain areas in the manufacturing industry.

The report said restrictions on non-essential stores could directly lead to a surge in sales of goods on e-commerce platforms, and the e-commerce sector would benefit.

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Maharashtra