Updated: Aug 11, 2020
Indians had high expectations while entering this new decade. But, with a pandemic, locust attack, a cyclone, a gas leak, rising crimes, and shattering economy; India can't catch a break. Today, COVID has become the norm, and it has left world economies highly uncertain. These chaotic times have highlighted pre-existing flaws in Indian infrastructure. According to OECD, COVID has "triggered the most severe economic recession." and this is visible through peaking unemployment rates. Indians saw a record-high, 23.5 per cent jobless rate in April and May, this year.
This pandemic has transformed the workplace. Physical distancing is need of the hour, resulting in a shift to the virtual mode. As the Indian government actively promotes
Work-From-Home jobs, we see young job seekers flooding the 'remote work' section on various job websites. Access to the internet has become a basic necessity, and this creates an ‘employer's bias’.
According to a survey conducted by the Indian Institute of Labor Economics (ISLE), unemployment is the most serious direct impact of the COVID-19 crisis, while long-term economic growth decline and inequality will be the long-term impact. The survey was conducted online on 520 ISLE members in the end of May.
Preliminary results show that the unemployment rate is considered to be the most serious direct impact of this crisis, and the long-term economic growth trend and the possibility of increasing inequality.
Methods that can be taken into account by India to make the economy steady in this pandemic:-
1. According to the survey, the recommended priority is to protect workers and families, create short-term employment opportunities and transfer income to affected workers. These can help them to withstand this pandemic.
2. In India, only 30 out of 100 students manage to complete school, others either remain unemployed or underemployed. Government should start free online technical classes that can help students to study while sitting at home and learn technical subjects that can help them to secure jobs after this pandemic phase.
3. In the short term, the government should provide a loan relief package – by which the loan repayment for unemployed graduates of 2018/ 2019 can be deferred by at least two years, so as students can have uninterrupted desired education and India has skilled employees when the country comes out of the pandemic situation.
4. As evidenced by OECD (2013) report, job creation is fostered by small fledging firms and MSMEs; therefore, the government should announce loan packages and funds specifically aimed at MSMEs and startups. Make in India loans should be provided so as to promote self-reliance for the country. India has all the resources to go self reliant, only a process system of loans for start-ups should be implemented efficiently.
These are not all, but can be start in not restoring but making the economy steady. All the Best and Stay Safe.
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