“Indian Economy is an Economy, Japan economy is a Japan economy…Indian economy is always our economy” this is what comes to my mind whenever I hearken the word “Economy”! This dialogue is from a famous Tamil movie called “Ghilli”. Joking apart, Let me share some insights on what an economy is and the global struggle & the economic crisis happening over.
The economy in a layman’s terms is known as the system of making and trading things, as a medium of exchange. (ie, money involvement all around the country). Okay! Let’s get into the topic-Now, India is not only battling the pandemic crisis of corona but also battling the second big battle called “the economic pandemic”. After the “Janata Curfew” followed on by the complete lockdown for 21 days, ensued to distressing events. Stock Market crash, No Restaurants, No hotels, No salary for most of the blue-collar workers across the country had lead to sudden demand suppression and a major slowdown of GDP and pushes to the severe recession not only in India but worldwide.
According to the Economic Times Report of India, It had estimated that nearly 35% of job losses might occur,
The Hotel and tourism industry employs 5 crore people, may expect 12 Lakhs Job losses
Aviation Industry a 2.2 lakhs crore Industry employs 3.5lakhs people
Retail Industry employs 4.6crore people expects job losses 1.1 crores.
Restaurant Industry employs 73 lakh people, expect job losses 14 lakhs & Real Estate Industry is already in a slump, and expects job losses to 35%.
Ride-Hailing Industry (like OLA &UBER) has 5 million driver-partners, expects business loses to -40 to 50%.
Top Car Manufacturing Companies (Maruti, Hyundai etc…) already have shut down their productions, which means more layoffs.
You Know, the Indian GDP had slowed down to 2% from 6%, Italy with -7%, Germany -6.8%, France -5%, Mexico -5.8%. From the above figures, it sharply portrays the global struggle.
How can we surmount this current looming Indian Economy crisis & Worldwide?
The following prepositions for India,
Opening bank accounts for the Poor people and transferring nearly 5 to 10K to them might be helpful for the immediate months to survive. Secondly, to cut the Interest rates. As the government had already announced the suspension of EMI for 3 months can be extended to 6 months, a reduction in GST rates. The Indian government can seek the necessary fund from the World Bank. The government can regulate to print currencies in accordance with RBI etc.., These could improve the money involvement among the country, the only ways, we could survive from this economic pandemic in the near future.
Import Exports rates have to be minimised drastically, large investments for Health Infrastructure and technology to be implemented globally. Investing in Agriculture technology worldwide will reap a greater economy world-wise as the food is the essential basic need in our lives, it is the crucial part have to be handled and taken care. Every country should think, act and connect globally. In Aviation Industry, the trust factor is going to be a great threat in the upcoming days, tying up with the healthcare industry and mandating strict rules will thrive in this industry. The only solution to withstand the global struggle is to act like every country is our country. Global Fund has to be raised and distributed accordingly.
Global Economy Struggle and crisis due to COVID -19 apart from these, it had also impacted the minds of people, it reshaped the life of a human being towards simplicity and marching towards compassion. Though we are battling with two pandemic crisis, with our global united minds, victory will be attained in a short span of time.
Hope you enjoyed the content. Readout my first blog & do share your comments: CO(ordination)VID-19 The Changing Environment