Tue. Apr 13th, 2021

The RealKashmir News

"The Voice of Voiceless"

Opinion | India; Post Pandemic Economy

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By Tarun Kumar

Global community is paying off heavy price because of COVID-19, almost whole world
stands in complete standstill to save the mankind.

No doubt standstill and restrictions on economic activities resulted into contraction of
world economy. And reports by IMF suggested COVID-19 crisis is much more severe
than the Financial crisis of 2008.

But to be India specific we have to put an eye on other side of the coin, and to get rid-
off this crisis build up a strong foundation for positives and opportunities for us in post
pandemic dynamic world. Socio-cultural history of India taught us very well how to deal
with the crisis. This is the land of Sri Ram, which taught us leadership means organise
minimal resources accordingly to upheld just society.

Lot of Articles and blogs very well introduced you already with upcoming problems and
we are heading for waves of devastation which will hit our lives and this country come
to an end, very strongly this narrative is in public domain. But every crisis also comes
with some positive aspects, so it’s our obligation to appreciate those aspects and work
on mission mode to grab the opportunity, instead of haul like a ruffian.

If we traced the history of crisis in all forms, from world wars to recent one COVID-19,
we can easily draw a pattern of reforms in the new world therefore, “Every crisis is
an opportunity to introduce fundamental reforms.”

Let’s stick to those reforms and put whole energy to put forward and chalk out
structural reforms in a cohesive manner and make this crisis Boon for India.

How to cope up with this crisis:-

Indian economy is rural based driven where agriculture, daily wages workers are the
main stakeholders. In this standstill urban to rural migration is at heights, and this is
what enable us to explore our rural India and absorb the economic shock of COVID-19. Solution of this crisis lies with 3Is i.e Investment, Infrastructure and Implementation. Now the million dollar question is how we address these three dimensions, and put it forward, as a boon.

Firstly, talk about Investment, Companies from China pulled out as started by japan,
South Korea and now US also joined them. This crisis makes the investors understand there is no point to put all eggs in one basket. Multilateral investment is the key to zero disruption in supply chain.

Thus, on following factors inflow of FDI depends,

  1. Infrastructure development, labour laws and stability of market. Indian market
    is quite stable than early volatility, further recent crash in oil price helps to
    reduce market volatility.
  2. State government should give due priority to the projects without delays, which
    seems in this pandemic the way Madhya Pradesh and Uttar Pradesh cleaning
    up labour laws regime to attract firms.
  3. Global ranking in Ease of doing Business, India’s gradual improvement in last
    few years makes it more feasible for India to attract companies pulled out from
    China. The country was 77th among 190 countries in previous ranking last year,
    an improvement by 23 places in 2020 report.
  4. To give investors single window clearance and inter-ministerial coordination
    government set Foreign investment implementation authority.
    All above points supports the fact that in future inflow of FDI in India will significantly
    increase and this will give edge to Indian economy to attract companies pulled out
    from China. Recently US also in talk with India to restructure the supply chain and
    Indian government is come up with plans to attract approximately 1000 US firms.
    Namely Abbott and Medtronic also planning to enlarge their size by establish large
    scale units in India.
    Government of India also considering a from e-commerce companies to postpone a
    tax on digital transaction as announced in budget 2020. Moreover, India offered
    economical land and affordable skilled labour.

Thirdly, Implementation:-
For the implementation of the policies and formulation of policies, we need to take a
urgent call to avoid red-tapism. To make a bridge between policymakers and ground
implementation we should go for pooled talent of young minds, who are religiously
able to work on ground realties. On this part we are lacking we need to address is as
soon as possible.
3Is, can help us to establish Indian economy and we can head for 5 trillion economy
in long run. Not just that, it enable us to reduce unemployment which shoots up to 27%
approximately because of lockdown. This will stabilise our economy and in future we
achieve our larger goal of just society.

Secondly, Infrastructure:-
On 24th of March 1st phase on lockdown was announced and till 31st March electricity
faced a contraction on 9%. Eight Core sectors of the economy shrinks in this standstill,
which is bound to happen across globe because of zero economic activities. Eight
core sectors are Electricity, Natural Gas, Crude oil, Coal, Refinery, Fertilisers, Steel
and Cement, all of them directly or indirectly related to infrastructure development and
now India has numerous labour both skilled and unskilled, we just have to put them in
right place. Critics views is urban to rural migration of labour will be bane for the
economy but it is not, this will obliged us to start development programme from the
grassroots and to take a lead, we should opt for Agro-based industries that will absorb
both skilled and unskilled labour, supports Make in India programme and entrepreneurship will evolve from the grassroots.

Moreover, MGNREGA will be
addition and enhance further rural development.
That is very much feasible because MSME sectors dominance in rural India, 51% of
MSMEs situated in rural India as per latest annual report of Department of MSMEs.
Thus, if we collaborate effectively and put forward in organised way we can take a long
leap with this workforce, and Mahatma Gandhi’s Vision come in place “if village will
perishes, India will perish too”.

Thirdly, Implementation:-
For the implementation of the policies and formulation of policies, we need to take a
urgent call to avoid red-tapism. To make a bridge between policymakers and ground
implementation we should go for pooled talent of young minds, who are religiously
able to work on ground realties. On this part we are lacking we need to address is as
soon as possible.
3Is, can help us to establish Indian economy and we can head for 5 trillion economy
in long run. Not just that, it enable us to reduce unemployment which shoots up to 27%
approximately because of lockdown. This will stabilise our economy and in future we
achieve our larger goal of just society.

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