Analyzing Economic and Political Status of UK and India Post-COVID

This essay examines the economic and political status of the UK and India following the COVID-19 pandemic, highlighting the challenges both nations faced, including unemployment, declining GDP, and trade imbalances. It discusses the socio-cultural factors and policy responses, such as taxation and ...Read More

ECONOMICS

Table of Contents
INTRODUCTION.......................................................................................................................3
TASK........................................................................................................................................3
Examining economic and political status of two chosen countries.....................................................3
Describe Challenges such as social, political and economic issues faced due to pandemic.................5
Explain what ways would be helpful for supporting possible chosen strategies.................................6
CONCLUSION...........................................................................................................................7
REFERENCES............................................................................................................................9

INTRODUCTION
The report prepared takes in account the purposes and objectives for which it has been
prepared. It takes in account what has been the political and economic status of the countries
chosen that are UK which is a developed country and India which is counted among
Developing countries (Seligman, 2020). It also helps to understand what has been related
effects and impacts of COVID- 19 on territories chosen. It explains what has been the Gross
domestic product growth stage observed for a certain period of time in related nations. It also
counts what has been the rate of unemployment prevailing in the market. There are many
issues and challenges that are being faced by countries due to situation occurred during
pandemic situations. It also helps to examine factors such as economic, social, political of
chosen countries keeping future perspectives in mind. It also defines various strategies
possible that would help to overcome such challenges and issues in due time. The report
further serves as a guide for understanding Working and functioning of a business in related
countries after assessment of such unpredictable situations. It considers where the countries
are demanded to work for betterment of certain areas.
TASK
Examining economic and political status of two chosen countries.
It has been observed that after pandemic struck both the selected countries which is UK
that is already a developed country whereas the other chosen country that is India which is on the
verge of developing. There has been unpredictable harm faced by both the countries such as
unemployment, loss of education, reduction in production carried out, insolvency in companies,
debt situations, shutting down of restaurants, deflation prevailing in environment.
Economic status of UK and India after pandemic:
 Consumption: There are factors such as consumption of food which reduced to
only basic requirements and demands. It further explains how the usage of raw
material, eating at restaurants declined and it also led to fall in demand & supply
of products & services as well. It has been noted that people have cut down their
needs, wants and expectations which led to minimum consumption made by them
in given time duration. Personal disposal income became bare minimum which
could be spent only on basic and necessary items in the market thus it led to
decline in consumption scale as well (Hail, 2018).
 Investment: Due to pandemic there was decline in level of investment made by
people in market as they had limited funds left with them. It was observed that
consumers had no money left with them and no liquidity was available. Investing
in stocks, banks and savings became nil after emergence of such condition in the
economy which led to downfall in economy. In UK it was observed that people
were not having any purchasing power left even after being counted in developed
country whereas in case of India which is among one of the developing countries
list it has been observed that the investment made by the people around was not
stable and even declined by a huge margin (Zhang, Wu and Liu, 2018).

 Spending money on net exports: Imports and exports had been observed to
decline by a large scale and to a huge extent as well which affected the economy
to an unpredictable level. It further explained the reasons that led to such
decisions of taking a step back. Due to pandemic impact, there had been lesser
production i.e., limited supply of raw material which were then converted in
finished products thus, there were very limited goods available to be offered.
Political status of UK and India after pandemic:
 Socio cultural factors: It explains elements such as income and wealth of people
who are working in different areas of the country. Due to pandemic many people
lost their source of income which led to instability in economy. It also resulted in
situations where people who had investments and saving on a larger scale
survived such situation such as UK which was counted in a developed country
whereas India which was still on the scale of getting developed was left with less
sources to generate income. It also had faced difficulties in accessing vaccines
and hospital services.
 Imposed taxes: The pandemic not only resulted in complex situations for common
people present in both countries but for government authorities as well. It was
necessary for them to recover from the situations thus they had to implement
taxes which would help them in generating funds for present as well as future
conditions too. The rates applied on importing goods from other countries
increased in relation to which it was mandatory for respected countries to levy
taxes and services on available exported goods as well for covering the incurred
costs (Itoh, 2020).
 Imports and Exports: It has been observed that pandemic has hit both the
countries on a higher incompetent level. Thus, it had been impossible for both
countries to cover the related expenses. The pandemic led to lockdown situations
due to which transferring of goods and services was not available and which led
to such conditions of not getting basic food and medical facilities on time. It had
also led to uncountable death rates in no time and which also affected the growth
and expansion of country meanwhile.
Describe Challenges such as social, political and economic issues faced due to pandemic.
Issues faced by UK and India: There have been many problems and issues that the
countries have come across during covid and after pandemic as well.

 Unemployment: One major social issue which has been faced by both countries
on same ground level is percentage of unemployment prevailing in territory due to
pandemic. It had led to no profit and bankrupt of companies at the time of Covid
which had also resulted in shut down of hotels, business. It has been a situation
where people didn’t have any other options available and no source of income as
well. It affected health and growth of every individual present in the economy. It
also led to situations where a respective person couldn’t apply for medical
facilities and access the basic requirements (Stevenson and Zlotnik, 2018).
 Declining rate of Gross domestic product: One major political issue explained is
decreasing level of income of the country for a time period observed in the
environment. It had been due to no demand no supply situation faced by both
countries at the time of lockdown. It had led to conditions such as no clue how to
overcome such barriers and unpredictable situations as well. It had also led to
closure of goods being purchased overseas and sent in other countries as well.
Balance of payment: It can be explained as economic issue because the payment which had
to be made went deficit in budgets and thus there were no funds available both the countries
for paying the debts present in the economy. There were no surplus funds available with the
countries for overcoming and planning any budgets as well. A lot of time was consumed for
getting back to normal level and both countries are yet struggling for fighting such situations.
It had led to inefficient planning, ineffective control over activities which harmed the
working and functioning of business (Decker, Elsner and Flechtner, 2019).
Explain what ways would be helpful for supporting possible chosen strategies.
Possible policies and methods that would contribute in overcoming such challenges are:
 MSME must be strengthened: It is suggested that for fighting such situations there
must be adequate surplus available with the medium and small enterprises which
could be used when such situations take place. It would be helpful in the long run
and they can use it for better planning of budgets and cash as when to apply & in
which areas the funds must be applied.
 Apply multiple accelerators for sustainable growth and expansion: It is
recommended that the countries and related companies must implement methods
which would help them to grow and expand in every condition and situation. This
would help them to adapt situation accordingly and with time as well. It is necessary
that there shall be a constant growth and development progressed in each country
over a period of time which won’t hinder its working in any circumstance. It takes in

account measures that would be helpful in serving the country right and increasing
the income earned and profit generated as a whole such as gross domestic product of
the country and increasing the export rate whereas minimizing the level of imports
made by both counties (Flynn, 2018).
 Maintain societal harmony and peace: It is advised that both countries must look into
matters which would help to establish peace and stability ion environment. it would
help people to have faith in working of government authorities and contribute in
same as well. It also counts solving of disputes if any that would contribute in
removing obstacles that come on way of both the territories. It is further suggested
that the counties must focus on finding ways that would be helpful in getting help
from other nations. It reflects the idea of maintaining relationships with people and
other countries which would serve as a tool and helping hand in such situations.
 Minimizing the gaps observed in income and wealth: It has been seen that there had
been many gaps in both countries’ income and wealth of individuals which must be
minimized. It has also been observed that there had been many issues in growth and
development of employees present in both nations as some were unemployed and
whereas others had no related job in hand. It had also led to situations where some
people had no source of income in hand which would provide them bread and butter
for the time being thus it is necessary to find ways which could lessen and fill such
gaps rather than increasing them over a certain period (Orrell, 2018).
CONCLUSION
The report prepared further helps to conclude that it is necessary for every country to
counter its related factors contributing in developing countries and in developed territories as
well. It explains what measures can countries take for better working and efficient functioning of
the country as well. It counts issues and problems that are being faced by nation in terms of
growth, development and expansion of same. It also undertakes effect observed in economy of
both countries such as UK and India. It is observed that India whereas is adapting new
techniques and strategies for facilitating development of country. It assesses in finding ways that
would help it to grab a place in list of developed countries. The report also serves an idea about
strategies being adopted by nations for producing better results. It takes in account related
strategies that would affect the performance served by the territories over a point of time. There
are various situations that must be counted for futuristic approaches such as planning in advance
the budgets and where to invest what amount of money. The countries have faced situations that
have resulted in unemployment and served as a hurdle in between the progress report of nation as

well. It also suggests various methods and advices which could be adapted by both countries for
effective working and functioning in related economic conditions in time being

REFERENCES
Books and Journals
Seligman, B.B., 2020. Main currents in modern economics. Routledge.
Hail, S., 2018. Economics for sustainable prosperity. Springer.
Zhang, L., Wu, J. and Liu, H., 2018. Turning green into gold: A review on the economics of
green buildings. Journal of cleaner production. 172. pp.2234-2245.
Itoh, M., 2020. Value and crisis: Essays on Marxian economics in Japan. Monthly Review
Press.
Stevenson, B. and Zlotnik, H., 2018, May. Representations of men and women in
introductory economics textbooks. In AEA Papers and Proceedings (Vol. 108, pp. 180-85).
Decker, S., Elsner, W. and Flechtner, S., 2019. Advancing Pluralism in Teaching Economics.
Routledge.
Flynn, S.M., 2018. Economics for dummies. John Wiley & Sons.
Orrell, D., 2018. Quantum economics: The new science of money. Icon Books.
Costa and et.al., 2019. Behavioral economics and behavioral finance: a bibliometric analysis
of the scientific fields. Journal of Economic Surveys. 33(1). pp.3-24.
Congdon, W.J. and Shankar, M., 2018. The role of behavioral economics in evidence-based
policymaking. The ANNALS of the American Academy of Political and Social
Science. 678(1). pp.81-92.