During the Great Depression of 1939, the economic downturn for GDP was down to 30 percent. The industrial sectors faced a decline of 47 percent which severely affected the job sector. About 23 percent were jobless, hereby not only the USA but other countries faced a similar downfall.

Maybe rich and developed countries or the poor countries to developing countries had seen the depressions in all sectors.

According to the experts or the monetarist, the main reason for this condition was the reduction in the flow of money. But the situation of financial decline led to the loss of jobs. Effects on the Economy were seen immediately during the pandemic conditions of 2020. Industrial sectors, businesses were entirely affected when the world was under lockdown. Sudden effects were on the GDP that had a depression of 3.5 percent.

Great Contraction decline over bankruptcy

The 33 percent of decline or deflation was because of the bank crisis when there was no money flow. It was the time when there was bankruptcy, for which banks were shut. A great downfall in the share market was seen when the bank shareholder wealth was reduced. Though the initial fall was from the stock market crash according to Friedman and Schwartz.

It was the period where there was no flow of money in the market. This stopped the functions in different sectors including the banks and stock market leading to economic downturn.

But during the pandemic of 2020, there was a slow but continuous flow of money. The banks faced hardships but were not bankrupt. But by 2021 the continuation of lockdowns or slowdown of the pace to work, businesses and industries may suffer from worsen qualities. Though comparatively, the situation is competitively better than the Great Depression. As the conditions are different as there is a consistency in the flow of money.

Does Post Covid 19 Economic downturn imply same as 1939?

The Great depression started from the beginning of 1931, by 1932 there was a decline of GDP to 25 percent. By the end of the period, it increased to 30 percent approximately. The two years were a massive disaster to not only the USA but the entire world.

The post covid 19 financial crisis has been less effective though it is true that the sudden onset of the pandemic forced a job crisis.

Different categories of private or blue-collar or contract workers had faced massive financial issues. The business-related to resorts, restaurants, and hotels had suffered a complete loss. On return from the lockdown, poverty had severely affected lives. About a decade from the Great Depression, in 1918 the Spanish Flu, 1919 the World War II was causing continuous damage to the economy. World War II had implemented an intense effect on the deflation of the currency.

While looking forward, considering  History repeats inflation is expected with loss in economic condition, Worldwide. It is one of the major economic downfalls of the 21st century compared to the Great depression in World financial history.

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BRICS is an acronym for the countries SA, Brazil, Russia, India, and China. These are the countries that have been taking initiative to develop the economy of the respective country. Among all the Asians are showing strong changes in their performances in growth. The target of the BRIC is to increase the supplies of raw materials and manufacturing goods by 2050.

The entire goals slowed down with the arrival of the Pandemic but the associated countries including China ensured support to fight the downfall. It was not only in India that the Pandemic has shattered the industrial infrastructure. Apart from it the public health and societal impact due to Covid 19 has affected the economy of the country.

Benefits of India As BRICS Countries

Foreign investment has always brought massive benefits to the countries. The access to foreign markets and trades between the countries can create opportunities for bargaining over prices. Also, enable to raise complaints on international business and trade issues. It is a platform for the countries with the potential to grow and support trades and markets on foreign investments.

Emerging new markets and the old trades, altogether BRICS countries was a success since 2009, that builds up a strong foreign market. These five countries have shown a profit beyond expectation with a GDP of $18 trillion. Hadn’t been there the effect of pandemic then it would have helped in the growth rate of more than 5 percent in the upcoming years.

Adapting BRICS is beyond imagination that is supposed to bring an impeccable change till 2050. The target of foreign and market development is to develop potentials overcoming the economic weaknesses of the five countries.

Common facts about the countries

The first common fact about the BRICS countries in the development of industrial growth that will help in financial development. The disadvantage of the four countries from the five is the issues of bribing or manipulation in trades and businesses. Russia stands out of the crowd with the highest benefits with strong monetary systems.

The second benefits of BRICS are to uplift the middle-class group. All these countries have a large group of middle-class people. Their involvement in the consumption as consumers will help is great improvements of the economy and financial status. It is expected that the business will increase to about two times of the G7 economies.

Power of India as BRICS

India as BRICS, the participant is considered to have a greater prospect in future apart from China. India’s position or status will slowly uplift with the increase in industrialized foreign businesses. Providing raw materials market and manufacturing is to be long term due to the low price or costing business.

Moreover, India is encouraged by the repeated call from the BRICS that are boosting to reform the economy. Reform of the manufacturing businesses and productions are putting India to new declarations and challenges. Reformations are leading India to act in diversified industries to bring massive development internationally and domestically.

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