Primary and Secondary Sector for economic revival in India
At present it is a matter of individual survival. It is important to channelise resources into the very basics of the economy.
I recently read an account of a person living in New Jersey, USA. He shared his trauma of 2008 recession, when the world economy came crashing down due to fall of Lehman brothers in the biggest economies of the globe. Those were the toughest times in the history of capitalist world of this century. Freshly graduated from school he landed in an era of mass layoff’s which accompanied job freezes, looming uncertainty and desperation to meet daily demands. He further added that these desperate times pushed many youngsters into the trap of multiple ill willed ponzi schemes. That did not end well for many of them, including him. With more that 212 million people losing their jobs in 2008 globally, many individuals chose to surrender their lives. Many families were broken and it took the governments across the globe years of restructuring and refinancing to set back the pace of the economy.
The Covid-19 crises brings back the memories of similar accounts just within a decade. As predicted by the Centre for Monitoring Indian Economy more than 18.9 million salaried persons have lost their jobs in just one month. It is a worrisome trend since salaried jobs once lost are difficult to recover, rather might have a ballooning effect on the already suffering economy. Experts predict that India has officially entered into a phase of recession which is here to stay.
As a consequence of which, the unemployment rates are at an all time high, prices of basic commodities are inflated, there is social chaos in the society and the mental trauma of these uncertain times are unbearable. According to ‘Rebooting 2020: A Story of COVID-19, and Shifting Perceptions’ survey by Mavericks India, sixty-one percent of Indians are experiencing mental-health related issues during this lockdown. The technologist Thejesh GN, activist Kanika Sharma and Aman, assistant professor of legal practice at the Jindal Global School of Law, have created a database of reported non-virus deaths in India, which shows that suicide was the leading cause of all non-virus deaths reported between March 26 and June 11.Of 298 suicides, 109 were due to financial distress, 55 to fear of infection, 33 due to withdrawal. The above numbers clearly point out to the level of distress in the society. The biggest worry is how to refinance their depleting resources.
India being an informal economy has casually sustained many spurts of economic recession, including the 2008 crises, however this time the struggle is real. People have stopped consuming, the initial hoarding during the start of lockdown period has stopped, multiple people have lost livelihood due to lack of funds. Their savings are on the verge of collapse. Banks on the other hand are flooded with money but very few are willing to avail loans. Stock markets are at an all time low. Speculations of global crash of economy has pushed back the investors and thus the already ailing economy of the country is now struggling to to breath a fresh life of air.
Thus what can be done during such testing times?
As it is said when nothing works out it is best to go back to basics. Even though the government is pushing hard for strategic revival of the economy. The sentiments in the market remain skeptical. At present it is a matter of individual survival. It is important to channelise resources into the very basics of the economy. This also gives us a very good opportunity to revive our primary sector. As agriculture supports livelihood of more than 50% population, it is essential to make this sector healthy. The government of India has pushed for agrarian reforms through its multiple programmes and schemes. The urban dwellers can help reorient their business skills to fill in the gaps in this sector. Be it in the form of FMCG’s, creating and maintaining supply chain logistics, food processing etc. This will not only help create jobs but also provide a fresh perspective to the most ignored sector of the economy. It’ll also create food security during the times of uncertainty like this. Meanwhile creating fresh opportunities for the revival of small and medium scale manufacturing units as the circulation of money would set the flow for these industries. The National Food and Agriculture System Project of Myanmar is a leading example whereby it is supporting income retention for farmers by improving the quality and utilization of agricultural inputs, and generate labor-intensive cash-for work-activities to create jobs for poor households, in particular for migrants returning to Myanmar after losing jobs abroad due to the pandemic.
The year 2020 has been a challenging one. We need to learn from best practices from around ourselves and take up the challenge of rebuilding the economy step by step. At present the focus must be on maintaining a steady flow of income. Agriculture and SME’s have the potential to absorb many distressed individuals but we need strategic steps to bring back the recovery. It is a time to support each other hand in hand and adapt to the changing sentiments of the consumer as well as the producer. It is a time to rebuild ourselves and once again stand tall in the list of rising GDP’s of the world.
