Covid19 pandemic has the adverse impact on the Indian business. The outbreak is indeed a shock to the Indian economy. The impact of the corona virus pandemic COVID-19 could lead to slowdown in domestic demand. This will result in erosion of purchasing power due to job losses or pay cuts and slow-down effect of deferred demand will have a longer lasting impact on different sectors, especially where demand is discretionary in nature. The Government of India has announced a variety of measures to tackle the situation, from food security and extra funds for healthcare, to sector related incentives and tax deadline extensions. With the prolonged country-wide lockdown, global economic downturn and associated disruption of demand and supply chains, the economy is likely to face a protracted period of slowdown. This research paper focuses on impact of the outbreak of pandemic Covid-19 on Indian economy.