INTRODUCTION:
The novel corona virus disease (hereinafter referred as “Covid-19”),
which has been declared as pandemic by Word Health Organisation, forced the
government to declare Lock Down all over the country and accordingly, this has completely
stopped the business and professional activities causing extensive slowdown of
Indian Economy.
BACKGROUND
India is fifth largest economy of the world. The GDP of India for the
year 2018-19 was $
2.719 trillion with the growth rate of
6.8%. The GDP growth rate for the financial year 2020-21, as per economic
survey, was expected to be in the range of 6.00% to 6.50%, wherein the
government has estimated nominal growth of GDP for 2020-21 at 10%. Yong and
Growing Population is its strength.
If we look at Pre-Covid19 situation of Indian economy, the problem of
NBFCs that started with ILFS was creating the fear for entire economy. Bank was
facing problems due to increasing bad loans, and it affected its lending
ability. There was significant reduction of private investment and new business
by companies. Though RBI had taken various measures, but few bankers have given
the benefits to consumers. The auto sector was going through short term
recession, reason of BS-IV and condition of third party insurance for five years
cannot be ruled out, as there was a less demand for vehicles, and accordingly,
the companies were doing laid off and suspended production for some time. Further, this is
also a matter of fact and record that last Year, 2019, was a difficult year for
the global economy with world output growth growing at its slowest pace of 2.9%
since the global financial crisis in 2009. A weak environment for global
manufacturing, trade, and demand adversely impacted the Indian economy.
Covid-19 has already impacted the global economy for this year too, and its
affect, in the present globalization, to the Indian economy is obvious. But,
being an optimistic person, I can see lot of opportunity for the growth of
Indian Economy post Covid-19 lock down. Past
performance is not necessarily a good predictor of future performance.
MEASURES:
There is an urgent need of specific clarification regarding the clear future
road map to revive the economy affected due to Covid-19 lock down. We have seen
in the Past that that financial markets, private investment,
inflation and overall economic activity were negatively impacted by heightened
uncertainty.
Work is required to be done, with the team of experts from different
industries, by taking, sector wise, both short term measures and long term
measures, wherein short term measures will allow the economy to resume its
operations effectively, and long term measures will ensure growth in economy.
Agriculture sector has the potential to support the economy even during
this Covid-19 period as it may not be substantially affected by this lock down.
There is a need to take the specific measures to save the present crop and
provide the required assistance for crop rotation. Proper mechanisms for Fair
Price to farmers, investment on infrastructure, availability of internet
facility for use of information technology and adequate warehousing arrangement
are required to be made. These measures may also assist the commitment of
government towards doubling
farmers’ incomes by 2022, and may help in generating employment.
Incident, during
Covid-19 Lock Down, of people migrating back to their villages shows that
separation of people’s natural habitat may produce income but not happiness. We
can learn from the “Work from Home” concept adopted during Covid-19 Lock Down,
and can make proper infrastructure for “Work from Village”. Encouragement to
Non-farming activities will not only reduce the problem of urban migration but
will also generate employment. This will also
increase the consumption level of rural India and accordingly open the ways for
fresh investment.
Corporate Bonds worth approximately Rs. 92,000/- Crore and
commercial papers worth around Rs. 78,000/- Crore are coming up for repayments
towards the end of May. Attention of India Inc. is required for proper
management of same as it will have impact on the confidence of investor on
Indian economy and strengthening trust in the market.
Effective Use of technology may reduce the government expenses thereby
support the government to manage Fiscal Deficit. Reducing the public holidays
for remaining part of the year will enhance working hours. Relaxations on laws and tax benefit may support the sectors
like hotels and restaurant, tours and travels, transport, construction and
automobiles, and it may also reduce lay off thereby help the government to
effectively deal with unemployment.
Economic activities are affected by the pendency in the legal system.
Immediate attentions are required for appointment of judges and making the
proper infrastructure and atmosphere for virtual courts. Special Courts are
required to be notified immediately to resolve, on time-bound basis, the
disputes/matters arise due to Covid-19.
The Word’s Dependency on
India for “hydroxychloroquine” during Covid-19 shows India’s potential on
Health Sector. Health sector has the potential to support the Indian economy
for its sustainability and it can also play vital role for the growth of Indian
Economy. It can help in generating foreign exchange and employment. Proper Investment
and more focus on innovation capabilities and knowledge revolution can be value
added to the Indian Economy, and it can also play very important role towards
the steps of making
India a $5 trillion economy by 2025.
CONCLUSION:
India is Rising Economic
Power, and there will be no problem for sustainability of Indian Economy post
Covid-19 Lock Down on taking the prompt adequate action in proper manner.
-THANK YOU-
Sources:
1.
The Ministry of Statistics and Programme Implementation
2.
Economic Survey
3.
Union Budget of India
4.
World Bank
5.
Live Mint
6.
Financial
express
https://www.linkedin.com/pulse/research-paper-sustainability-indian-economy-post-lock-sharma
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