The covid 19 pandemic has not only affected the lives of the common people but has also adversely affected the economy of major developed countries. India, too, has not been spared. In fact, it is one of the most affected nations that are under economic crisis in the midst of the pandemic. It is concluded by economists that the economic growth of India shall take years to get back to the pre-pandemic levels. Tough times are more to come.
The economic crisis is threatening
The Indian GDP rate has stoop so low that has not been seen in years. The GDP contracted by a steep 23.9% that has created history in the world’s worst-hit GDP fall rate. It is more disastrous because India has entered recession for the first time since the British left. The IMF or international monetary fund suggested that India is the worst-hit nation across the globe that has been hit economically due to the pandemic. If it continues like this then India will face the worst nightmare in the years to come.
Modi promises to provide sharp growth in 3 years
Though the economic condition is weakening day by day, our PM Narendra Modi Ji promises to provide a dominant growth in the economy rate within a stipulated 3 years’ time. Our union finance minister, Nirmala Sitharaman presented a “V-shaped” recovery plan that would help in increasing the GDP growth rate of India by 2023. We are yet to experience how it will actually work to bring back the economic rate to normal statistics. His plans are significant and hopefully, it will be delivered within the stipulated time so that the commoners get back to leading a normal life after the pandemic is controlled.
Pre covid financial condition not likely in years
Although the Modi-led government promises to bring the Indian economy back on track by the year 2023, achieving the pre-covid economic rate is still a dream. “Even if we consider the possibility of a sharp, V-shaped recovery that many are talking about and a best-case scenario of sustained growth even then it will take till 2033,” said Sabyasachi Kar who holds the chair of RBI at the national institute of public finance and policy. It is predicted that India will take almost 13 years to bounce back to being one of the major developing nations in terms of economic growth.
The Policy Times suggestion
- It will take years to maximize the recovery rate of the Indian economy. The government must lookout to plans and policies to tackle the economic crisis in the country. The focus on rural development, agricultural sectors, employment boosting, and managing MSMEs can prove to be beneficial for the purpose.
- The financial schemes must be taken care of effectively. The loan rates, the RBI intervention, and other similar financial management must take place inadvertently so that the recovery rate increases soon.