We all know that the COVID-19 pandemic has caused a significant toll on people due to its unforeseen challenges. It has not spared the realm of the global economy.
India hailing the status of an underdeveloped country, its GDP has dwindled by 23.9%. Food prices and transportation services are driving up inflation, paradoxically the market for mass consumption of goods continues to be weak, making it worse for the low-income families to afford.
Consumers are facing a whammy of shrink in their incomes due to a cut-off in government income. Moreover, the loss of jobs has hit the skids. Thus, the concern arises, what steps are taken by the government to stimulate the GDP?
The labour sector under the MGNREGA is worst affected as they lost their jobs due to lockdown. The casual labourers have suffered hardship. These instances demonstrate the inefficiency of government policies.
The government is planning to boost private investment and limit state-run investment. The chief economic advisor, Krishnamurthy Subramanian, proclaimed the delay of fiscal stimulus. However, the government needs to understand that delaying stimulus will make the situation atrocious. The government asserted that a V-shaped recovery is underway in the economy. Isn’t it ironic to perceive? As all the institutional and private forecasts do not support this claim.
Unless there is a steadfast involvement in the economy, both business and consumer sentiments are likely to suffer. The government needs to revise the fiscal policy and instead of fostering private investment, it should stimulate state investment. More attention should be put on the casual sector labourers and recover the jobs of the individuals.
The inflation in prices of necessities should be reduced so that low-income families can afford it. The government should not cut off income. Through these ways, the GDP can be revived.
Disclaimer: This opinion is a perspective from one end, everyone might not agree with the same. We respect each other and every opinion and look forward to hear it from our viewers.
Opinion by: Shahin Ahmed, The North-Eastern Chronicle