Write an article on- “Economic impact of Lockdown in India and upcoming opportunities for Indians”
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Explanation:Jaan hai toh jahaan hai – Prime Minister Modi
It is an understatement to say that our world has changed dramatically over the last few months. It is not an embellishment to say our entire schedule has changed in over a couple of months, with social distancing being an essential phase. The novel coronavirus pandemic has resulted in catastrophic damage for the global economy as well as a colossal loss of human lives, in this age of global peace. Prime Minister Narendra Modi has taken strict actions to contain this deadly virus. On March 25th, the Prime Minister had imposed Lockdown 1.0. This was the most extensive lockdown in the world that led not only to draw a Laxman Rekha on our doors but also to our factories. Prime Minister Narendra Modi said, protecting the lives of Indians was his highest priority. “I am speaking this not as a prime minister today, but like your family member. Please patiently follow the 21-day lockdown. To save the lives of every Indian is my, the state government and the central government’s biggest priority”. However, sparsely anything was spoken about the Indian economy by the government. This nation-wide lockdown brought a severe toll on our Indian economy. The more this lockdown was extended, the more the economy suffered. The Indian economy is predicted to lose more than 32,000 crores per day during the first 21 days, which will, therefore, result in the loss of our GDP by 7.5 lakh core rupees. However, the Reserve Bank of India is supporting the economy by taking essential measures possible by making ₹3,74,000 crore available in the country’s financial system. India’s Finance Minister Nirmala Sitaram has put together a Rs 1.76 lakh relief package that would help primarily the unorganised sector employees, in particular the day-to-day wage workers, urban and rural workers. Even the Asian Development Bank and The World Bank have approved their support to help India tackle the coronavirus pandemic.
Even after such an extensive lockdown, the cases were rising day by day India’s Prime Minister had no choice but to impose a Lockdown 2.0 on April 14th. At this time, the Indian economy was touching new lows. The World Bank and credit rating agencies have downgraded India’s 2021 fiscal year growth with India’s lowest figures seen since the 1990s liberalisation which was three decades ago. However, a new set of directions have been developed during this lockdown 2.0 to calibrate economic openness as well as to relax the lockdown. The government has also modified India’s foreign direct investment policy to secure Indian companies during the pandemic. Arvind Subramanian, the former chief economic advisor for the Indian government, said India should plan for a negative rate of growth in the fiscal year 2021 and that the country will need an investment of more than 70 lakh crore to resolve this contraction. Nevertheless, India’s projection of 1.9% GDP growth in fiscal years 2021-22 is the highest among the G-20 countries in the International Monetary Fund.
The coronavirus pandemic in India may just be the greatest emergency since Independence, and with the rising cases in India, the Home Ministry on May 4th has imposed lockdown 3.0. However, there was substantial ease to the economy, the government bifurcating the country into the Green, Orange and Red zones, this being the first attempts by the government to restart the economy although the significant industrialised hubs like Delhi, Mumbai, Ahmedabad, and Pune remain in the Red zone.
This virus has not only taken people’s lives but has also taken people’s livelihood. The Global Economy in the start of 2020 was dipping into a global recession. Even the Indian economy had a rocky start to 2020 as well. However, the lockdown will worsen not only the global economy but also India’s economy. During the lockdown, about 14 crore Indians have lost their employment, and over 45 percent of households across the nation registered a decrease in income compared to the previous year. Most of these labourers are daily wage earners and migrants. We cannot have the poor, labourers or migrants workers bear the brunt of the efforts to contain this virus, and nor do we want to weaken the pillars of the economy so much that we emerge from the pandemic onto a ruined economy. The one key problem is striking the right balance between curbing the spread of the virus and keeping the economy functioning.