Odisha News, Odisha Latest news, Odisha Daily - OrissaPOST
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Timeout
  • Entertainment
  • Sports
  • Sci-Tech
  • Others
    • COVID-19
    • Today’s Pic
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Timeout
  • Entertainment
  • Sports
  • Sci-Tech
  • Others
    • COVID-19
    • Today’s Pic
No Result
View All Result
OrissaPOST - Odisha Latest news, English Daily -
No Result
View All Result

CoVID-hit Economy

Updated: January 12th, 2022, 07:30 IST
in Edit
0
(PC: Reuters)

(PC: Reuters)

Share on FacebookShare on TwitterShare on WhatsAppShare on Linkedin

India is now in the grip of the third wave of the CoVID-19 pandemic. The official data just released by the ministry of statistics and programme implementation offer a grim picture of the country’s economy ravaged by the pandemic. As projected by government statistics, India’s economy contracted by 7.3% in the April-June quarter of this fiscal year. This is the worst decline ever observed since the ministry had started compiling GDP statistics quarterly in 1996. Last year, the government strategy to deal with the pandemic was guided by the slogan of ‘life over livelihoods.’ The initial lower intensity of the scourge emboldened the government to go as far as to declare, in January 2021, that victory over CoVID-19 had been achieved. This betrayed immature and misplaced optimism. Now, again the third wave consisting primarily of the Delta variant coupled with the Omicron variety is spreading its tentacles and sweeping over the country. Many Indian states, which were caught unprepared last year, have already started imposing restrictions and partial lockdowns posing a threat to economic recovery. The second threat to economic revival is the vaccination rates. If a major portion of the labour force is not inoculated, coronavirus is in all likelihood going to disrupt real economy. The current lockdowns have scared the immigrant labour force and due to their terrible past experience many have already started heading home. This is bound to affect national productivity.

The second wave brutally exposed the vulnerabilities of India’s $2.9 trillion economy which remained shuttered during the lockdown period, except for some essential services and activities. As shops, eateries, factories, malls, transport services, business establishments were closed, the lockdown alarmingly slowed down the economy. The informal sectors of the economy, already crippled by Demonetization in November 2016, have been worst hit by the pandemic. India’s GDP contraction during April-June could well be above 10% if the informal sectors are considered. The country’s economic growth is largely driven by private consumption and investments. All the major sectors of the economy were hit except agriculture. The Indian economy was facing headwinds even before the arrival of the second wave. As statistics suggest, the contraction of the economy would continue in the next four quarters and a recession appears to be inevitable. The surveys conducted by the Centre for Monitoring Indian Economy show a steep rise in unemployment rates, in the range of 7.9% to 12% during the same April-June quarter of 2021. The economy is having a knock-on effect with MSMEs closing down their businesses. Millions of jobs have been lost permanently and this has dampened consumption. The government need to spend billions of dollars to fight the health crisis and help fast economic recovery from the pandemic-induced recession. Whether the government is capable to foresee the catastrophe building up and whether it has deep enough pockets to handle it is debatable.

The GDP growth had crashed 23.9% in response to the Centre’s no notice lockdown. As of now, India’s GDP growth rate is likely to be below 10 per cent. The Controller General of Accounts data for the Centre’s fiscal collection indicate a gross-tax revenue (GTR) of Rs 20 lakh crore and the net tax revenue of Rs 14 lakh crore for 2020-21. The tax revenue growth will be 12 per cent, which would mean the projected gross and the net tax revenues for 2020-21 would be Rs 22.7 lakh crore and Rs 15.8 lakh crore respectively.

This is no solace at all. With many states resorting to localised lockdowns to hide their incompetence to build the health infrastructure to cope up with the pandemic, the hospitality sector is facing a repeat of 2020. This sector that includes businesses such as travel agencies, restaurants, hotels, bars, clubs and more has contributed to a large portion of India’s annual GDP. But it has been hit hard by restrictions and curfews imposed by the states. Some of the sectors such as tourism that normally contributes 7 per cent to the GDP, the automobile industry and real estate that contribute immensely to employment opportunities are in equally bad shape. Aviation is also taking a hit as people are scared to step out of their homes in the second and third waves.

The pandemic has, however, not affected India’s fiscal deficit and disinvestment target much. Union Finance minister Nirmala Sitharaman announced a fiscal deficit target of 6.8% for 2021 to 2022. India’s fiscal deficit for 2020-21 rose to 9.5% of GDP as against 3.5% projected earlier. The finance minister has pegged fiscal deficit at 4.5% of GDP by 2025-26 by increasing tax revenues through greater tax compliance and monetisation over the years. All these figures are, undoubtedly, government manufactured and must not be taken as projecting complete honesty.

The upshot of all the statistics and projections is that if the outbreak worsens over time, or if the case numbers are very high, India’s economic and fiscal recovery will not be possible any time soon. The government need to seriously ramp up vaccination, build up health infrastructure on a war footing and refrain from simply increasing taxation to fill up its coffers.

Taking shortcuts like imposing frequent restrictions and partial lockdowns that throw normal life out of gear may not be the only solution to this mega problem.

Tags: CoVID-hit EconomyIndia's GDPOP Editorial
ShareTweetSendShare
Suggest A Correction

Enter your email to get our daily news in your inbox.

Related Posts

Curbing Speculation

August 12, 2022
Gotabaya Rajapaksa

Rajapaksa To Return?

August 10, 2022

Game Nitish

August 10, 2022
The Sierra Leone-flagged ship Razoni leaves the sea port in Odesa after restarting grain export, amid Russia's attack on Ukraine, Ukraine August 1, 2022 (PC: Reuters)

Wheat & War

August 9, 2022
US House Speaker Nancy Pelosi (left) waving beside Taiwan’s President Tsai Ing-wen at the Presidential Office in Taipei, Taiwan. (File: AFP)

Not Taiwan, Business

August 8, 2022

The New Space Race

August 7, 2022

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

OrissaPOST epaper Sunday POST OrissaPOST epaper

Click Here: Plastic Free Odisha

Plastic Free Odisha

National School Kujang

National School students Kujang Jagatsinghpur district support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook ...

October 2, 2018
Plastic Free Odisha

CRPF 127 Battalion, Bhanjanagar

CRPF 127 Battalion, Bhanjanagar supports a plastic free Odisha. Do you?   *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Archita Sahu, Actress

Archita Sahu support a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your ...

August 30, 2018
Plastic Free Odisha

Deepak Kumar-Actor

Deepak Kumar support a Plastic Free Odisha. Do you support the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 30, 2018
Plastic Free Odisha

Sudarsan Pattnaik,Sand Artist

Sudarsan Pattnaik support a Plastic Free Odisha. Do you?  *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your Photos/Selfie ...

August 30, 2018
Plastic Free Odisha

Hinjili Police

Hinjili Police support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your Photos/Selfie ...

October 2, 2018
Plastic Free Odisha

Valena Valentina-Karate Player

Karate player Valena Valentina calls for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

August 30, 2018
Plastic Free Odisha

Samanta Singhara Nodal High School students

Samanta Singhara Nodal High School students of Balia, Jajpur support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

October 2, 2018
Plastic Free Odisha

Sri Aurobindo School students & teachers

Sri Aurobindo School students & teachers of Sambalpur support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our ...

October 2, 2018
Plastic Free Odisha

Tanbhi Block School students and staff

Tanbhi Block School students and staff support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

Bargarh Ranapratap High School students

Bargarh Ranapratap High School students support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Cuttack College NCC students

Cuttack College NCC students support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Elina Samantray, Actress

Elina Samantray calls for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 29, 2018
Plastic Free Odisha

Anubhav Mohanty, Actor

Anubhav Mohanty supports call for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook ...

August 29, 2018
Plastic Free Odisha

Kalamatia Sahid Bidyapitha students

Kalamatia Sahid Bidyapitha students support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

October 2, 2018
Plastic Free Odisha

IMT Pharmacy College-Puri

IMT Pharmacy College students call for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend ...

August 30, 2018
Plastic Free Odisha

Sundargarh Public School teachers

Sundargarh Public School teachers support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Debashish Mohanty-Former Indian Cricketer

Cricketer Debashish Mohanty supports  a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

August 30, 2018
Plastic Free Odisha

Naveen Jindal-Enterpreneur

Naveen Jindal support a Plastic Free Odisha. Do you?  *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your Photos/Selfie ...

August 30, 2018
Covaxin
Christmas

Bharat Biotech rubbishes criticism, says its vaccine is safe    

New Delhi/Hyderabad: Hyderabad-based Bharat Biotech rejected Monday criticism over the grant of emergency use authorisation by India’s drug regulator to ...

January 5, 2021
Plastic Free Odisha

Nayagarh Girls’ High School

Nayagarh Girls’ High School students support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

Sundargarh Public School students

Sundargarh Public School students support a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

October 2, 2018
Plastic Free Odisha

Members of All Ride Bicycle

Members of All Ride Bicycle supports a plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

D.A.V Public School-Kalinga Nagar

D.A.V Public School Students, support Plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post ...

August 30, 2018
Plastic Free Odisha

Actress Bhoomika Dash

Actress Bhoomika Dash calls for a Plastic Free Odisha. Have You Joined the movement? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our ...

August 30, 2018
Plastic Free Odisha

Swaraj Barik, Actor

Swaraj Barik calls for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

August 29, 2018
Plastic Free Odisha

Ratikant Mohapatra,Odissi Dance Director

Ratikant Mohapatra support a plastic free odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) *Post your ...

August 30, 2018
Plastic Free Odisha

Arindam Roy, Actor

Arindam Roy supports call for a Plastic Free Odisha. Do you support the movement? *Visit our website www.orissapost.com. Like,Share,Subscribe,Recommend our Facebook ...

August 29, 2018
Plastic Free Odisha

High school students of Sambalpur district

High school students of Sambalpur district support plastic free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page ...

October 2, 2018
Plastic Free Odisha

Hockey Player Dilip Tirkey

Hockey Player Dilip Tirkey supports a Plastic Free Odisha. Do you? *Visit our website orissapost.com. Like,Share,Subscribe,Recommend our Facebook Page Orissapost(@OrissaPOST.Here.Now) ...

August 30, 2018

Archives

Editorial

Curbing Speculation

August 12, 2022

Primary commodity prices have been on a roller-coaster ride for the past year, and especially for the past six months....

Read more

Rajapaksa To Return?

Gotabaya Rajapaksa
August 10, 2022

The news that Sri Lanka’s former President Gotabaya Rajapaksa, who fled the country after mass protests and resigned soon after,...

Read more

Game Nitish

August 10, 2022

This round seems to have gone in favor of Nitish Kumar in Bihar. The Kurmi leader is known for his...

Read more

Wheat & War

The Sierra Leone-flagged ship Razoni leaves the sea port in Odesa after restarting grain export, amid Russia's attack on Ukraine, Ukraine August 1, 2022 (PC: Reuters)
August 9, 2022

The good news for countries facing food shortages and starvation, especially in Africa, Middle East and Asia, is that shipment...

Read more
  • Home
  • State
  • Metro
  • National
  • International
  • Business
  • Opinion
  • Feature
  • Sports
  • Sci-Tech
  • About Us
  • Advertise
  • Contact Us
  • Career
Developed By Ratna Technology

© 2020 All rights Reserved by OrissaPOST

  • Home
  • Metro
  • State
  • National
  • International
  • IPL
  • Sports
  • Business
  • Entertainment
  • Feature
  • Opinion
  • Sci-Tech
  • COVID-19
  • Today’s Pic
  • About Us
  • Contact Us
  • Career
  • Facebook
  • Twitter

© 2020 All rights Reserved by OrissaPOST