With the coronavirus being stubborn even in the last month of 2020, we all do not know when we will be able to declare ourselves a covid free nation. While the common people have been hit by the pandemic at many levels, the Indian economy has suffered a lot too! But according to economic strategists, it is slowly clawing back to being normal after suffering a technical recession. We can hope that in the coming years, we will see a massive boost in our economic condition.
India on technical recession
After suffering two successive economic contractions, India is on the verge to enter a “technical recession” this year. The GDP of India has stooped so low that it has even fallen down below Bangladesh’s GDP rate. What adds to the woes is that the current pandemic situation and the lockdown being imposed again on major states have increased the chance of a slowing down economy rate. The rural business and unemployment in major MSMEs have triggered the fall in the Indian economy massively. Though recovery is taking place, going back to pre-covid levels is still a dream.
Car sales, industry manufacturers adding to the growth rate
The rise in automobile sales and industry manufacturing works has indeed added to the economic growth of India. Domestic consumption and agricultural trade have also seen a rise in sales which has added to the economy as well. “While the farm sector remained the bright spot, supported by a good monsoon season and subsidized inputs, we think the recovery likely spread wider across the economy and is on the verge of becoming entrenched,” said Indian economist, Rahul Bajoria, in a report about the same.
The burden on common people
Although the hopes are high that we will get a vaccine by the end of the year 2021 and it will help us to be back in being one of the world’s most developing nations, we cannot deny the fact that the burden on the common people is still a thing to worry. While most of us are paying extra for conveyance in public transports already, chances are that the recovery in the economy can also fall as a burden of increased taxes for commoners. Our financial minister hinted at the same as she said that India is already on the verge of a faster economic growth rate.
The Policy Times suggestion
- As we enter a technical recession for the first time since the British left us, it is indeed a reason to worry. But the government is doing its best to recover from the economic crisis in the next few years. If the agricultural sectors and bank loan parameters can be checked well, it can turn the economic growth tremendously.
- Our PM has promised to make India an economically forward country by the year 2023. It will be foolish of us to only believe him and do nothing. We, as citizens of India, must also make ways for adding to the economic surge. We must find alternate career options to sustain during the ongoing pandemic situation.