The world is facing severe economic challenges due to the worldwide pandemic Kovid-19. Whether developed countries or developing or poor, all suffer from economic stagnation due to this epidemic from China. There is a widespread impact of this economic stagnation in India too. Due to this, the Reserve Bank of India admitted that the country’s economy will decline. Recently the International Monetary Fund (IMF) also said that this year the Indian economy could shrink by about ten and a half percent. Such a shrinkage in the economy of a developing country like India is a major challenge. State governments will have to face this challenge together with the Center.
Epidemic China will continue to dominate the global economy: IMF
According to IMF, while the economies of the countries of the world will decline, China, which is spreading the epidemic worldwide, will continue to dominate the global economy. That is, the major countries of the world were not able to put China in the dock. Given China’s dubious role in spreading the epidemic and the encroaching attitude of the Chinese military in Ladakh, India had also said that it would curb imports of Chinese goods, but there seems to be no major breakthrough on this front. India has taken some symbolic steps against China, but it is clear that there are still measures to be taken that will affect China’s health and actually reduce imports from there.
Announcements made during lockdown on economy Enough No effect
To give a boost to the economy affected by the epidemic, the central government made several announcements one after the other during the lockdown period, but they did not show enough effect. It is clear from the industry’s stand that it did not get the required concession. The package of Rs 20 lakh crore announced by the central government was discussed a lot, but it did not show as much effect as was thought. Recently, the central government has taken some other steps to give a boost to the economy. One of these steps is to give cash vouchers in lieu of Leave Travel Concession (LTC) to central employees. This voucher can be used to purchase such items, on which the GST rate is more than 12 percent. It is doubtful that this will give any special force to the economy.
It will not be correct to charge interest on interest after the announcement of loan moratorium
The central government will have to take some other measures. Along with focusing on these measures, it also has to solve the issue of loan moratorium. The Supreme Court has asked the government to implement its decision not to charge interest on interest soon. Of course it would not be correct to charge interest on interest after the declaration of Moratorium. If this is done, then people who have taken loans, their trouble will increase. Such people are already plagued by epidemics. Since the festival of Navratri has started, it is believed that the process of buying will continue till Diwali and this will give relief to the economy.
Corona epidemic will last
When the country went into lockdown during the epidemic, economists as well as companies believed that the economy would be back on track by Navratri. It was not anticipated then that the epidemic would last so long. Although the number of corona patients is decreasing and the majority of people suffering from infection are recovering, but everyday people are losing their lives and it is difficult to say when to get rid of it. In the case of deaths due to corona, the Ministry of Health says that of all the people who died, sixty percent were those who had serious diseases before.
Corona infection may intensify in winter
Given the large population of the country, the figure of deaths of healthy people is not very frightening. Despite this, caution is required. More so because scientists believe that corona infection may intensify in winter. It is good that the Center has stepped up an awareness campaign to prevent corona, but it will be successful only when people take precautions and cooperate with the government machinery.
Violation of physical distance: On the first day of Navratri, crowds were seen in all the temples of the country.
It is not good that on the first day of Navratri, crowds were seen in all the temples of the country and there was violation of physical distance. People need to understand that one still has to be alert to health and follow the physical distance and use the mask properly. Only by doing so can this epidemic be avoided and the possibility of a second wave of corona infection coming to an end. Lockdown should not be allowed to come again, because only then can measures that speed up the economy be made effective. It is for everyone to understand that the economy can get back on track as soon as the epidemic remains under control.
Government should consider IMF’s suggestions to bring economy back on track
The government should take note of the suggestions made by IMF Chief Economist Geeta Gopinathan to put the economy back on track, especially on strengthening the global supply chain. They are right to say that without the global supply chain, there will not be much success in imports and exports. Similarly, there is a need to do something that reaches the hands of the poor and laborers. During the lockdown period, the government added funds to the account of the poor in the rural areas and started a free food scheme. The urban poor and migrant laborers will also have to be brought under the umbrella of these schemes.
Government to compensate the loss of economy due to lockdown Have to do Work fast
The central and state governments will have to work swiftly to offset the damage done to the economy due to the long lockdown. It was good that the central government decided to take a loan on its own to compensate for the GST, given the decaying economy of the states, but at the same time it should focus on building construction and infrastructure development. Apart from this, readymade garment industry should also be supported. The auto sector seems to be coming to some degree, but there is doubt that demand will remain for a long time. In such a situation, it would be appropriate that the central and state governments should pay special attention to those sectors, which can also provide employment to the common man.