The need for maximum government for holistic development after Covid-19 pandemic. (The Hindu)
19/11/2020

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   Earlier slow economic growth & employment were coupled with Covid-19 pandemic which further worsen the economic, social situation of nation in the field of growth and employment.  There is need for the economic revival while focusing on the creation of the demand in the economy, the job creation, export promotion   and investment in the infrastructure.  It should further coupled with maximum government while rethinking our health, economic and climate policies.
What were / are the causes for negative and slow economic growth during Covid-19?
  1. Rise of the unemployment: Due to the lock down, most of the industries and manufacturing units were shut down as a result people in informal sectors lost their jobs.
It not only reduced the output from the manufacturing units but also reduce the demand in the economy due to lose of income.
  1. Disruption in the supply chain management: The Covid pandemic severely affected the supply chain of manufacturing goods, agricultural commodities and raw material to feed the industries that directly impacted on the output and supply of the units.
  2.  Lowering down of the Export: As the international and flights, cargo were suspended for time being.  Even most of countries markets were nearly closed and disrupted during pandemic. As export plays a major role in the India’s economic growth was slow down and affected the economy.
  3. Slowdown in the infrastructure investment from abroad and within India also adversely impacted the wheel of economic growth of India.
  4. Lockdown and supply disruption severely affected the MSME sectors which play a crucial role in the job creation, export and demand creation in the economy. As before Covid crisis MSME contributes about 30 % to the country’s GDP and gives employment to about 11 Crore people. 
 Steps taken by government to revive the economy: 
 

Government Reforms and Enablers across Sectors under Aatma Nirbhar Bharat Abhiyaan


KEY HIGHLIGHTS
  1.  Rs 40,000 crore  increase in allocation for MGNREGS to provide employment boost
  2.   Increased investments in Public Health and other health reforms to prepare India for future pandemics
  3.  Technology Driven Education with Equity post-COVID
  4.   Further enhancement of Ease of Doing Business through IBC related measures
  5.  Decriminalisation of Companies Act defaults
  6.   Ease of Doing Business for Corporates
  7.  Public Sector Enterprise Policy for a New, Self-reliant India
  8. Increase borrowing limits of States from 3% to 5% for 2020-21 only & promoting State level reforms
Government announced relief measures in three tranches — Atmanirbhar 1.0, 2.0 and 3.0
The first tranche of ‘Aatmanirbhar Bharat Abhiyan (Self Reliant Campaign)’

The second tranche of ‘Aatmanirbhar Bharat Abhiyan (Self Reliant Campaign)’:In the second tranche, F.M. announced nine measures; three for migrant workers, two for farmers and one each for small businesses, street vendors, housing sector and employment generation
The package proposes to offer 5 kg of grains per person and 1 kg chana per family per month for two months to migrants who are neither NFSA nor State Card beneficiaries. Expected to benefit about 8-crore migrants, the Centre will bear the entire cost of ?3,500 crore. States will implement this scheme based on the list they have prepared’. One Nation-One Ration Card’ scheme has also been expanded to enable migrant beneficiaries access public distribution system from any fair price shop in the country. About 67-crore beneficiaries under the PDS are expected to be covered