India economic crisis 2020
Supreme Court of India today slammed the Centre for problems in economy created by government’s coronavirus lockdown measures. “You locked down the whole country, now give relief”, the apex court told to Central Government while hearing a petition seeking waiver of interest on loan repayment. The court gave centre time till September 1 to have its stand clear on the same.
Supreme Court slams centre
The Supreme Court said this while hearing a petition seeking waiver of interest on loan repayment for moratorium term,the period pertaining to coronavirus lockdown announced by centre. Seeking government’s stand on waving of interest, the top court told the centre that it cannot hide behind the Reserve Bank of India (RBI).
Earlier, the RBI had told the court that they cannot waive interest on term loan repayment for moratorium. Because with such a move, the financial health and stability of banks will be at risk. The Supreme Court reacted sharply on government’s comment that waiving interest move would hurt banks and businesses. The SC said, “this happened because you locked down the entire country”.
The court gave time to centre till September 1 to make a clear stand on the petition that asks for cancellation of interest on loan repayment for moratorium during coronavirus lockdown period. The apex court said, Indian Government has not clarified its stand in interest waiving yet, although it possesses ample powers under the Disaster Management Act to grant the waiver.
Lockdown effects on India economic crisis 2020
Coronavirus pandemic came to India after playing havoc in many other countries, specially in Europe and United States. The country was supposed to have learnt many lessons before applying them in the better management against the pandemic. However, Indian Government took a number of novice and insensible decisions regarding lockdown measures.
These moves did not go well in the battle against the Covid outbreak. First and most disastrous blunder was the time to impose the coronavirus lockdown in the entire country. In any country, we saw, the lockdown decision made at the time when pandemic was close to its peak. However, lockdown decision in India was too early and too sudden. That was when just a few hundred cases were reported in some of the big cities.
The country looked totally unprepared for a lockdown as the government seemed fully unaware about the disaster management. The cost of government’s confusing and ridiculous moves was paid by general public, vulnerable communities and migrant labourers. After two months, when Covid cases were towards their peak in the country, government lifted the lockdown as it could not afford it anymore.
Job losses record high amid India economic crisis
Indian economy has shaken heavily by coronavirus pandemic and the lockdown measures taken by government to contain it. A number of businesses were shutdown and employees faced mass laying offs. Also, migrant labourers suffered for a meagre two-time meal and a shelter to live. Amid all this crisis, salaried employees took a big hit in the developing country.
Plight of salaried job sector worsened during coronavirus lockdown, with a total estimated job loss at 18.9 million during April 2020 to July 2020, said a report of Centre for Monitoring Indian Economy (CMIE), an independent body which measures and tracks economic indicators. Even in 2019-20, salaried jobs faced 19 million shortage, a 22% drop than the levels in last fiscal, it said
A total of 17.7 million job losses recorded in April, 0.1 addition job losses in May, followed by 3.9 million job gains in June, with again 5 million job losses in July this year in the country, said the CMIE report. Salaried jobs are not lost easily, however, once they are lost, it becomes much more difficult to retrieve them. That’s why the ballooning numbers create worry, the CMIE expressed concerns.
Conclusion
Not only these numbers are a huge source of worry. But, in general, you can look around in your surroundings to see what a drastic impact this Covid pandemic and lockdown measures have put on our lives. Countries across the globe have taken lockdown measures to contain the pandemic. But hurriedness and untimeliness shown in India reflect some other aim. The government seemed to be aiming at being world leader instead of taking care of people’s safety and prosperity.
