How it's impact in Nepal

As the Covid-19 corona virus epidemic had a serious impact on the Indian economy, economics and concern have been expressed in Nepal about its impact.

India's gross domestic product (GDP) declined by 23.9 percent in the first quarter of the current fiscal (April-June).

According to BBC Hindi, India is facing a recession for the first time in 40 years. However, economists say that even if some sectors are affected, Nepal's economy will not be a big problem because it is not export-oriented.

He said that Nepal should not be too worried as the market price is likely to remain stable or not in the face of declining demand for goods and services in the Indian market.

 With the contraction likely to intensify in the second quarter, the recession in India could lead to a major downturn in the labor market.

Economist Keshav Acharya also says that the Indian economy has an impact on the labor market. Stating that there are Nepali workers in India like Japan and South Korea and various Gulf countries, he said that there could be a big problem in the region.

Experts say that in case of withdrawal of foreign investment from India, the Indian currency will come under pressure and in such a case, the exchange rate of Indian currency will fall.

The UK economy has also seen a decline of around 20 per cent. Even in such cases, they are expressing their commitment to provide more assistance.

Experts say that in an underdeveloped country like Nepal, projects may be halted due to political turmoil, but projects will not be halted due to weak Indian economy.

- BBC, Nepali