The world, including India, is currently reeling under the coronavirus. This pandemic is not only causing economic losses. Economic side effects will be seen more in the coming days. A look at some of the country's big challenges in 2020.
In a country with a population of 1.3 billion, the corona pandemic has suddenly caused an excessive burden on public health services. Shortage of hospitals, shortage of wards and beds for patients the country is already suffering. India is ranked 145th among 195 countries in terms of quality and accessibility of health services. However, the country's scientists in medical research are working hard.
The impact of lockdown can also be seen in the agriculture sector. However, there is no shortage of foodgrains in the country's warehouses. Under the Self-Reliant India campaign, the government has announced an additional Rs 30,000 crore loan for farmers. With this, the agricultural sector needs to have a long-term policy so that there is no difficulty in the face of crisis.
Indian banks are reluctant to lend to small companies. Banks are putting more emphasis on protecting their money amid the negative effects of the COVID-19 pandemic on the economy. According to a report, commercial banks have deposited a record $62 billion with the Reserve Bank of India, while banks get very little interest. Banks are already facing bad loan pressures.
The exodus of daily wages and migrant laborers from big cities and industrial hubs is going to emerge as a major challenge in the coming time. Lakhs of workers have moved from different cities to their villages. The lack of manpower in cities may be in the future due to the absence of daily wage workers.
The Indian economy has been profoundly hurt due to the Korna virus epidemic and lockdown. Some rating agencies estimate that the growth rate may remain zero this fiscal, with two rating agencies believe that the growth rate of the Indian economy will be negative. The lockout has shown a very profound impact on both demand and consumption.
Economic activity was stalled due to the lockdown, and although some relaxation is now taking place, the unemployment rate is still very high. According to the Centre for Monitoring Indian Economy, the unemployment rate in the country was 24 percent in the week ending May 17, which is still very high.
How to work
Companies in many areas of corona had never thought of getting homework, but the same companies are working with their people from home. In the future also, emphasis will be given to get homework done. But the lowering of the office staff will reduce the need for others. If a large number of employees work from home, the market for commercial properties may also be over.
Long-term policies have to be put in place to prevent further spread of infection in a densely populated country, such as policies to reduce congestion in public spaces. The bus, metro, train, and markets will have a strict emphasis on hygiene while following the rules of social distance during and sometime thereafter during the corona crisis.
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