For a long time, the economy of India is featured as a middle income developing market economy. Due to the Covid-19 pandemic, the Prime Minister imposed a lockdown which brought the employment of the country to a sudden halt. To boost up the employment, the Rozgar Yojana Scheme was introduced. But will this scheme alleviate the job crisis and match the pace of economic discovery with the employment? The question mark remains.
The wheels of the economy
The way India’s economy was badly affected by Covid-19, no such other major economy was affected. In the country’s history, the worst transaction occurred in the April-June quarter as the country’s gross domestic product was reduced by 23.9%. The wheels of the economy also have started but it is predicted that the recovery will take much time. In November, employment fell intensely. The number of persons who once reported themselves as unemployed and were moving here and there looking for work is also declining. The loss of jobs at a high rate and also the falling income levels is truly dispiriting the workers from the remaining labor markets.
The rate of employment and unemployment
Till November 22, the unemployment rate in India stood at 7.8%. The labor participation rate resulted in a sharp fall in the employment rate at 36.24%. Since the recovery stagnated in late June 2020, the employment rate of November is the lowest. Even it also marked the employment fell in India for the second consecutive month in November 2020. In the first two weeks of November, the rate of employment has been sliding slowly and steadily. The recovery rate slowed down well before it was completed. A report also stated that the recovery phase is over and a decline is setting in again. Besides, the count of the unemployed did not rise.” The Labour statistics also indicate a substantial slowing down of the economy” CMIE said.
More challenges for the recovery
Some researchers at Oxford Economics have predicted that till 2025, India would struggle with low growth. Although the Rozgar Yojana Scheme is been introduced for the recovery phase, the recovery is not been taken properly into account. The loss due to the pandemic is immense. The new large-scale measures to revitalize the growth must be processed well to recover the economy.
The Policy Times suggestion
- The proper fiscal policy should be adopted to get the growth on track even if the deficit goes up. The pros and cons of the scheme must be taken into account. To make the ends meet, the Prime Minister also must take other serious necessary steps.
- Proper investment ideas must be implemented so that the optimistic scenarios of recovery may get more and more probable.