The economic situation of Covid-19 after recovery
The economic situation of Covid-19 after recovery A privilege to introduce a write-up from one of the Top Institute for Govt Job exam, MIES Institute is a modern equipped Competitive Institute in West Bengal. An informative article on this pandemic situation of Covid-19 after recovery of economic condition in India 2021 is been written by the Director of this Topmost Institute for WBCS exam preparation in West Bengal, Mr. Jayanta Majumder. He had brilliantly described in this article the economic situation of Covid-19 after recovery. MIES Institute is one of the Best Institute for PSC, SSC, RAIL, BANK exams preparation in Kolkata of West Bengal, situated at Sonarpur (HO), Sealdah (Main City Centre), Branches at Barasat, Behala Chowrasta, Howrah Maidan, konnagar, and Chinsurah, moreover, this Institute is one of the best coachings for Govt. Job exams preparation in West Bengal. The write-up follows below. The United Nations sees the Indian economy recovering by 7.3 per cent this calendar year after a corona virus-driven fall of 9.6 per cent last year. The UN’s World Economic Situation and Prospects 2021 report released on Monday said that “despite drastic fiscal and monetary stimulus” India’s gross domestic product (GDP) fell because of lockdowns and other containment efforts that “slashed domestic consumption without halting the spread of the disease.” India’s GDP growth was forecast to dip in the 2022 calendar year to 5.9 percent, according to the report. China, where the Covid-19 pandemic started and spread bring the rest of the world to its knees, was the only major economy to have grown last year, registering a 2.4 per cent increase last and is forecast to grow by 7.2 per cent this year and by 5.8 per cent next year, according to the report. The global economy shrank by 4.3 per cent last year and is forecast to grow by 4.7 per cent this year and 5.9 per cent the next. UN’s Chief Economist Elliot Harris said, “The depth and severity of the unprecedented crisis foreshadows a slow and painful recovery.” He warned against the temptation to impose excessive fiscal austerity while the world recovers from the pandemic. “As we step into a long recovery phase with the roll out of the vaccines against Covid-19, we need to start boosting longer-term investments that chart the path toward a more resilient recovery,” he said. He said that the world now needed “a redefined debt sustainability framework, universal social protection schemes, and an accelerated transition to the green economy.” Analytical figures regarding economic condition The World Bank earlier this month forecast India’s economy to fall by 9.6 per cent during the current financial year but recover by 5.4 per cent next financial year if there is wide vaccination against the disease and it is contained. Compared to this, according to the UN estimates made on a fiscal basis for India, its economy was estimated to fall by only 5.7 per cent in 2020-21 and increase by 7 per cent in 2021-22 and 5.6 per cent in 2022-23. Reports are coming in from many quarters that India is swiftly recovering from the economic crippling caused by Covid-19-related lockdowns. Factory output in the country has risen steeply and at levels not seen in nearly a decade. While the exact shape of the ‘curve’ of India’s economic recovery is still being analysed, there is a palpable sense that things could have been much worse; indeed, by some estimates, they had been forecast to be much worse. Present political scenario If a political economy event could be considered the measure of the emotion on a real street, then it would be the recent elections in Bihar, one of the country’s poorest major states, where the ruling BJP-JD(U) combine won the elections, mostly on the personal appeal of Prime Minister Narendra Modi. What is going on? First, the stimulus rolled out by the Indian government has come in phases, with a constant feedback loop from the ground along with tweaks and alterations depending on the response. Second, the focus has consistently been on targeted delivery of cash and benefits to the most vulnerable parts of society where the money was more likely to be immediately spent rather than merely saved for a rainy day as middle-class financial behavior often tends to lean towards, thus creating money flow in the economy. A crisis in countries like India leads to an expanded rate in household savings. Govt. Actions regarding The economic situation of Covid-19 after recovery By targeting the stimulus sharply on rural jobs and cash and benefits to the vulnerable, especially in village communities, the government ensured that support went to the most-needed sector in the country. This is also why agrarian growth has remained resilient in the face of contraction in the wider economy in 2020 and why sales from two- wheelers and tractors to fertiliser off-take have remained strong and steady even in a year of unprecedented crisis. Special mention must be made here of the PM Kisan Yojana that shifted direct cash transfers to around 10 crore farmers, distributing about Rs 90,000 crore since its inception in December 2018, a significant part of it paid during the Covid-19 lockdown. Govt projects boost us economy Whether it is the rise in wages under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) or the special ex-gratia payments for around 200 million underprivileged women during the extreme lockdown, a vast portion of government help during Covid-19 has trickled down to the grassroots especially in non-urban areas, leading, unsurprisingly, to a record turnout of women voters in recent state elections around the country. Further reforms of agrarian markets, as rolled out recently, are likely to bring in much-needed private investment in the agricultural economy. The push for domestic sale and purchase of local products under Atmanirbhar Bharat has further propelled bumper sales at the Khadi and Village Industries Commission (KVIC), including a record of four days of sales of more than Rs 1 crore (per day) in the 40 days following October 2—a special day for khadi