Introduction
The
COVID-19 pandemic has left the whole world in a dire state of uncertainty
crippling the economic conditions worldwide. The worst hit country of all has
been India. Even though the infected cases and death rate is a lot lower than other
countries, still the effects on the economy has pushed India’s backs against
the walls.
There
are chances of an economic recession that is predicted to be worse than the
great recession as was seen in 2008, when the stock markets in the Wall Street
and the real estate business in the United States crashed and millions of
people were left unemployed on the streets.
Poverty Crippling Indian Economy
A quite similar scenario can be seen in the case of the Indian economy right now. The unemployment rate as per the recent report by The CMIE (Centre of Monitoring Indian Economy) has shown a massive increase of 24.6% on a national level as of 23rd March, 2020. On a State/UT level, the worst hit State/UT is Puducherry with an unemployment rate which stands at 75.8%.
The
Labour class which includes migrant daily workers, who are currently struggling
to survive and are trying to find a way to get back home, have been the worst
hit of all in this crisis, due to negligible amount of funds and no work. Since
the lockdown, almost 10% of the middle class families have been threatened to
be evicted from their rental apartments.
The Lack of Resources and Opportunities
Even after the lockdown relaxations in various States and districts, people are trying to find ways to make ends meet. Finding jobs opportunities in the current situation presents to be a herculean task since most Start-ups, companies and airlines which used to employ a large number of the population are now at the brink of bankruptcy.
Recently,
the report by CMIE has shown that the tours and travel industry which is home
to around 60 million workers has suffered huge losses and will be laying off around
42 million employees from their jobs, the real estate sector has already seen a
loss of 14 million jobs and the flourishing restaurant industry has suffered
irreparable losses of millions of rupees subjecting most of the restaurants
from ever opening again or creating any employment opportunities.
Such
abnormal rise in unemployment is being witnessed for the first time in Indian
history. This pandemic has changed the whole world scenario by shifting almost
70% of the work, to be done from home, making it even more difficult for the
underprivileged members of the society from getting any opportunity due to
either lack of technical knowledge or lack of resources due to poverty.
Conclusion
As
of now the future seems to be bleak with a lot of difficulties ahead for
everyone especially the unemployed daily wage workers. Still the authorities
are devising methods to curb this menace so that people can return to their
normal lives but the definition of normal may not be the same for us forever
even after this pandemic gets over.
Written by - Max Croson
Edited by - Arnav Mehra
Social