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COVID-19 impact | India's economy to shrink 4.5% in 2020: Finance Ministry

The projection is 6.4 percentage points lower than what the Centre had predicted in April this year.

July 06, 2020 / 17:01 IST
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India's Gross Domestic Product (GDP) will shrink  4.5 percent in the current fiscal year, the Union Finance Ministry said in its macroeconomic report.

In its report, the Department of Economic Affairs said that the uncertainty caused because of the absence of a vaccine against the novel coronavirus poses a "serious challenge" to the economy, NDTV has reported.

However, various social welfare schemes rolled by the government will help revive the economy, the report pointed out.

The projection is 6.4 percentage points lower than what the Centre had predicted in April this year.

As per the report, the COVID-19 driven lockdown has led to a sharp decline in imports, which has led to a positive impact on exports. Besides, crude oil prices have been at a record-low in the global markets.

COVID-19 Vaccine

Frequently Asked Questions

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How does a vaccine work?

A vaccine works by mimicking a natural infection. A vaccine not only induces immune response to protect people from any future COVID-19 infection, but also helps quickly build herd immunity to put an end to the pandemic. Herd immunity occurs when a sufficient percentage of a population becomes immune to a disease, making the spread of disease from person to person unlikely. The good news is that SARS-CoV-2 virus has been fairly stable, which increases the viability of a vaccine.

How many types of vaccines are there?

There are broadly four types of vaccine — one, a vaccine based on the whole virus (this could be either inactivated, or an attenuated [weakened] virus vaccine); two, a non-replicating viral vector vaccine that uses a benign virus as vector that carries the antigen of SARS-CoV; three, nucleic-acid vaccines that have genetic material like DNA and RNA of antigens like spike protein given to a person, helping human cells decode genetic material and produce the vaccine; and four, protein subunit vaccine wherein the recombinant proteins of SARS-COV-2 along with an adjuvant (booster) is given as a vaccine.

What does it take to develop a vaccine of this kind?

Vaccine development is a long, complex process. Unlike drugs that are given to people with a diseased, vaccines are given to healthy people and also vulnerable sections such as children, pregnant women and the elderly. So rigorous tests are compulsory. History says that the fastest time it took to develop a vaccine is five years, but it usually takes double or sometimes triple that time.

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So far, revenue receipts have declined 68.9 percent year-on-year during FY20-21, the report stated further.

Moneycontrol News
first published: Jul 6, 2020 05:01 pm

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