The impact of covid-19 is still raging and with this the uncertainity of it on economy is multiplying. The growing unemployment and decreasing economy is raising many questions which are unanswerable. What is governments take on this? Can passing funds alone keep the economy alive? Growth of the nation have four lifelines- investment, consumption, government expenditure and exports. This lockdown has most affected the travel agencies, the hotels, the chemical industries, the daily wage workers, domestic labours, share market, constructions, IT companies, agriculture etc.
Outside agriculture, the impact of job losses is largely restricted to construction (of the order of 16 million); trade, hotels and restaurants (5 million); manufacturing (13 million); transportation (4 million); and mining (1 million). That’s around 39 million. In the event of India faring much worse, this number can increase to upwards of 60 million
Government have divided each state into GREEN, RED, and ORANGE zones, this will help them segregate the most affected, most vulnerable and most safest place.
Government is planning to restart some of the industries and economic activities in the GREEN ZONE, where pandemic did not hit. Many green zones are likely to be in rural as they are less hit by compared to the cities. Hence restarting the agriculture sector would be a priority. In this the biggest hurdle would be the manpower force, for which government are taking measures so as to make it available. India’s economy was however not growing on a descent rate for past six years,but after this pandemic we are drowning more than ever, said an economist who also warned the sinking employment of the country.
Modi made an announcement about extension of lockdown till 3 may on Tuesday, this time period will me helping us to make a proper plan to restart the economy as and when health conditions allow us.
Mohandas Pai said, poor are being prioritised but the most horrifying issue of country is to retain the jobs which is way more difficult now. 30-40% of MSMEs will die if banks don’t lend them, they asked RBI to involve in matter. Funds, cash and refund of GST should be provided to MSMEs to keep the alive. RBI needs to help government with 3 trillion so that it can deal with the situation.
Soumya kanti Ghosh feels the necessity to help service sectors so that bank can lend money easily.
Secretary General of FICCI, Dilip Chenoy said “Prime Minister’s address to the Nation was very timely & appropriate. PM has also talked about the gradual calibrated opening up post 20th April in select areas where there are no #COVID__19 positive cases”
