India is a densely populated country. It has many advantages, but with the advantages, the loss seems to be more. The population has created so many problems, but the problem of unemployment is still at the top. Due to the corona, it saw even more bounce. Unemployment was increasing for the last 60 years, but there was no employment in the last few days. Unemployment stands as the biggest challenge for India today and the government has so far failed to tackle it.
The Indian economy is going through a difficult phase due to Corona and the government is on its knees. The Indian economy has witnessed the biggest decline so far. India’s GDP fell 23.9 per cent in the quarter between April and June.
Some believe that this is due to the lockdown. But according to economists, India’s economy was stalled before the lockdown. Although the agriculture sector has saved India’s economy from a more worst phase. Krishnamurthy Subrahmaniam, Chief Economic Advisor to the Government of India, also says that the GDP was set to fall after the lockdown, but no signs of recovery have begun. But most economists believe that the improvement in the economy can only be seen next year.
Where is employment?
India was one of the countries where lockdown was imposed early. This will affect employment. Companies started retrenching after a few days because the lockdown was causing huge losses to all companies. According to data, more than 25% of the people in India lost their jobs, about 120 million people are unemployed today. This was the condition of the entire sector. The tourism sectors were completely stalled. Other sectors are facing the same situations.
The situation of India is different from other countries, here about 60% of people are directly or indirectly dependent on agriculture. This is the reason that the biggest impact of the corona has been on urban employment. Most of the employment in India is in the cities, due to which the lives of the people living in the cities were greatly affected. Living in cities is more difficult, so people started running towards their villages.
But unemployment is also eclipsed by living in the village because there are no jobs too. The agricultural sector alone cannot bear the burden of such a population. Although people were forced to go towards those sectors which were running more, this work is just to their lives.
Now the lockdown is over. People have started moving back to cities for employment. But the problem is that the condition of most of the sectors of the city has deteriorated. Companies will take time to stand on their own feet. The power to give employment to so many people is no longer in urban areas. But for, the meaning of employment in cities. For countries like India, this problem is going to cause more damage.
Steps to take
The government-commissioned some schemes at its level. In which poor welfare employment campaign and NREGA is important. All the schemes implemented by the government during this corona period. Most of the schemes were for the rural people and the people of the city were lagging, in taking advantage of it somewhere.
This is not going to easy but for this, the government will have to emit employment. The government will have to work with local government by doing proper coordination because most of the jobs are still at the local level. The situation can be improved by improving urban infrastructure.
In such a time, the biggest benefit can come from the small scale industry, so the government should take serious care of it. Preventing reverse migration is the biggest challenge right now. For this, the most important thing is to provide employment in the village. The government is running NREGA for this but it is not enough. Under the Rural Development Program, people should be given a lot of employment so that urban employment does not have to be overburdened.
There is no doubt that Coronavirus has made a deep impact on the economy of not only India but all countries. In a diversified country like India, it has had more impact. But the government should take this problem as a challenge. Narendra Modi in his speeches talks about turning disaster into an opportunity, but this government must first understand this. This disaster has given the Modi government a challenge as well as an opportunity to mark its name in the history of this country.
(Article written by Suman Pandey)