Pandemic and Economic Slowdown: Strategies to Tackle Both

Abstract

The disease Covid-19 was officially declared as a pandemic by the World Health
Organisation (WHO) on 11th March 2020. Within four months of its emergence, the said
disease had spread to all parts of the globe except the continent of Antarctica and has
infected millions of people. Studies on the data available from the earlier four pandemics
show that the pandemic will cause severe strain to the public health care system as the
system will have to deal with a large number of patients simultaneously. The economy will
also be severely disrupted. An US congressional study points out that a severe pandemic will
result in the GDP growth falling by 6.5 % in the year in which the pandemic happens. There
are a number of medical and non-medical strategies available to prevent/combat pandemics.
That an economic slowdown will be caused by a pandemic outbreak is an obvious fact. In
India, for the purpose of combating Covid-19, there is a lockdown of the entire country,
bringing business activity to a standstill. Even before the lockdown, there was recession in
the Indian economy. Post lockdown, the economic managers of India will have to take
innovative steps to revive the economy. Enhanced government spending is a must. The
investment climate in the country must be improved. Further, incentives must be given to
customers to increase their spending.

Keywords: Corona Virus; Covid-19; pandemics; Economic slowdown; Epidemics,
Pharmaceutical Intervention; Non-pharmaceutical intervention; lockdown.