Page 10 - The Indian EYE 052821

NATION MAY 28, 2021 | The Indian Eye 10

How the pandemic has exposed

the cracks and fault-lines in India’s

economy and society

Beijing has reportedly built an entire town, replete with roads and office buildings,

inside Bhutan; China eyeing more influence in Afghanistan as US prepares to leave

S GOpal purI the average income in the fu-
ture. Today it is only 50%. In
New Delhi/Chandigarh 2050, the population might be

OVID-19 has exposed higher than in China as the pop-
the Indian economy ulation growth is an increase of
Cto various uncertain- 1% per year.
ties now. People have lost jobs;
businesses are facing losses and the government needs to
loans in the banks are unpaid
as people are unable to pay in- develop more india and
stallments now. In 2017 a study attract investments with
of the University of Harvard re-
vealed that India is the country some major projects like
with the fastest growing econ- bharatmala: road, high-
omy that can overtake China.
As per researchers India would way, express highway proj-
have been be the “World’s Eco- ect, sagarmala: estab-
nomic Heart” because of the
variety of new fields explored lishing coastal economic
by India: Chemicals, vehicles & Zones, Mega port: example
electronics.
But this COVID has turned of the trivandrum interna-
out to be an “importunate” tional seaport (under con-
event because they were far
from the pandemic, which Migrants carry their belongings as they leave for their native places amid struction), dholera and Gift
would upset forecasts or just the second wave of the pandemic (ANI) city: construction of new
slow them down. According
to the International Monetary Before the pandemic, it was casts. The Pandemic strong- green and smart cities and
Funds, the pandemic will re- estimated that by 2030 the cit- ly impacted all the currencies navi Mumbai program: a
shape the whole India economy. ies will be the heart of the eco- in the world, the USD is now
They predict its decrease nomic growth for the country. weaker. This can be a benefit new international airport.
because people fled the cities However, with the rural exodus for the Indian rupee.
and became unemployed. The because of the pandemic, this With the growth of the GDP The expected growth is now
government’s plan from April future is uncertain. (Gross domestic product) we well and still challenged because
2021 is to privatize some large India is one of the most dy- think that the rupee should go of the pandemic. Many people
companies like Air India. This namic countries in the World through many difficult times, lost their jobs and they need to
income from privatization was mostly because the recent gov- some “years of weakness”. In find how to earn incomes.
to be spent in the health care ernment has reduced taxes and spite of that, the economy of Jayati Ghosh, Chair of the
sector. wanted to open India with For- India should recover from the Center of Economic Studies and
But till May 1st, 2021 only eign investment. effects of the pandemic and the Planning at Jawaharlal Nehru
1.7% of the population is fully The rupee is a risk currency future should be with “no seri- University in Delhi said in state-
vaccinated (24 million of peo- but the USD/INR is still bullish: ous headwinds” as it foreseen ment: “The best-case scenario is
ple). It is the first step to count- With the development of the for the currency. two years of very deep econom-
er-attack the pandemic and country, the economy should According to the forecasts: ic decline”
hope for future growth. grow as per the Economic Fore- 80% of households might earn Continued on next page... >>

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