Along with a health emergency, coronavirus has also induced an economic emergency in the country. Businesses are shutting down and work is hindered. Malls, theaters, and roads are becoming empty. There is a fear of the economic slowdown deepening.
Hence it is important to take some precautionary and smart measures to help your finances.
According to personal finance expert Gaurav Mashruwala, here are a few things you should do right now:
The most important thing to do right now is to keep cash with yourself. Evaluate how much you spend every month and calculate an average. Then keep the amount of expenses for the coming three months with yourself. This must be done on priority.
Only after this is done should one plan or work on any investment or long-term strategy.
There is also a demand now that the government should provide relief to the people regarding payment of loans and bills. However, no such decision has been taken at the moment. It is better to be safe than sorry.
“Due to coronavirus, the demand issue has increased considerably. Employees are being laid off in India. So how can these employees and the disabled businesses repay the loan? India needs to cancel the principal and interest payments of all bank loans by the end of this year.”BJP MP Subramanian Swamy
Impact of Coronavirus on Economy
The government thinks that coronavirus will not impact the Indian economy. However, estimates and data paint a different picture. Minister of State for Finance and BJP leader Anurag Thakur in a reply in Rajya Sabha stated that in the face of falling oil prices Indian economy can benefit from the situation.
But the very next day, rating agency S&P reduced India's growth forecast to 5.2 percent from 5.7 percent in 2020. Earlier, Moody's and Organisation for Economic Co-operation had also cut India's projected growth rate.
According to S&P, problems in demand and supply at the domestic and business levels will arise because of which the issue of unemployment will also be aggravated. This, the agency believes, will happen due to the reduction in domestic demand because of coronavirus.
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