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5 WAYS TO REVIVE INDIA’S ECONOMY POST COVID-19

by Admin


The novel coronavirus or Covid-19 has decelerated the fast-paced wheels of India’s Economy to some extent. Health services in India have been strained. India’s economic growth forecast as per International Monetary Fund (IMF) has been estimated at 12.5 percent for 2021. However, with a real Gross Domestic Product (GDP) growth at -7.97 percent, the task at hand to achieve a growth of 12.5% seems quite difficult. The economy of India is known as a middle-income developing market economy. India’s economic rank stood at 138th by GDP in 2020.

With the pandemic still looming large, the informal sector workers have been adversely affected as their wages have ended due to regular lockdowns.  So, how can India revive its economy post-Covid-19? Here are a few ways that can help India provide a boost to its existing growth rate.

Investment in Sustainable Infrastructure

The most effective way to create jobs and provide a boost to the Indian economy is by investing in Infrastructure. But what kind of infrastructure should be focused upon? After the 2008-09 financial crisis, South Korea invested nearly 70% of its stimulus towards developing green infrastructure. It helped them rebound faster than other economies of the world. Similarly, the United States invested heavily in green energy and public transport after the 2009 Great recession. This helped the US create more jobs compared to traditional investments.

India can also make use of this opportunity and invest in renewable sources of energy to bring its economy back on track. The initial focus can be on the use of rooftop solar panels. Solar power can help spread the reach of critical services in remote parts of India. Investing in cold storage facilities and supply chains can help farmers avoid losses by ensuring the preservation and timely distribution of agricultural produce. These sustainable measures can greatly help in achieving a faster growth rate.


Provide support to the most vulnerable section of the society

90% of India’s workforce works in the informal sector. This section also bears the maximum impact of economic shocks due to Covid-19 and needs greater access to social safety measures and credit benefits. They also need a greater impetus when it comes to pension and insurance schemes.

Moreover, access to quality education, fresh air and clean water should be at the center point of the country’s future economic policies.

Extend financial assistance to MSME’s during Covid-19

The Indian government has already started to strengthen Micro, Small and Medium Enterprises (MSMEs).  It has announced an economic stimulus of INR 1.7 trillion and is also planning for another bailout worth INR 750 billion for MSMEs. The capital infusion in the MSME sector will provide a great impetus for the industry to recover soon after the Covid-19 pandemic.

The auto industry will also need the government’s aid to regain its ground. The government can make use of this opportunity to promote green technologies by making this aid conditional on enhancing fuel efficiency and clean energy.

On the other hand, taxes on luxury commodities with adverse environmental impacts can be levied to discourage their usage. Increased cash flow in the hands of the people will further increase their purchasing power thereby, encouraging higher economic development.  

Temporary Universalisation of PDS

Making food available to people for almost a year can take off the burden of households to a great extent. Another way of increasing the purchasing power of households, this method will leave more money in the hands of people for them to spend on other forms of consumption activities.

The combined stock of rice and wheat in the central pool stands at 830.50 lakh million tonnes (MT) in May 2021. About 66 MT of food grain is needed in order to universalize PDS for 6 months. We have more. Universalising PDS for about a year can act as fuel to power India’s economic growth as expenditure on food is one of the principal expenses of any household and with the universalization of PDS, their purchasing power will increase substantially.   

Promote technological initiatives and advancements

At last, we all know the role that technology will play in the future. As a result, the technology sector will see greater employment opportunities. We have seen small countries like Israel and Japan doing wonders with rapid technological advancements.

The need of the hour is to not only support the technology sector but also to create a favorable environment for the usage of new gigs and tech. This can be done by placing the right regulations and ensuring data privacy so that the consumers can access new technologies without any fear of their data being stolen or manipulated.

These decisions will help in securing a lasting economic recovery along with ensuring sustainable development.  The Economic Survey 2021 highlighted the government’s efforts to scale up India’s health services. While the health sector remains the primary focus of the government, the above-mentioned ways can serve a great deal for the revival of India’s economy after the Covid-19.

above-mentioned ways can serve a great deal for the revival of India’s economy after the pandemic. 

Also Read: BOAT AND ITS JOURNEY BEHIND BECOMING 5TH LARGEST WEARABLE BRAND IN THE WORLD


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