Post-Covid Indian Economic Development
-Dr.
Lalit Kumar
Covid-19 Pandemic and Indian Economy
The Indian economy was affected by more than 25 Million Covid Cases in the first and second waves of the Covid-19 pandemic and this affected the economic development of India also. During the financial year 2020-21, the first quarter GDP Growth Rate was negative 24.4% and this was due to the crisis and pandemic situations of Covid-19. The lockdown to contain the spread of the Covid-19 pandemic impacted very adversely and factories, trains, transportation, and construction everything was stopped. Definitely, the demand in these sectors was waiting for the opening of lockdown.
In the second quarter of the year, the economy recovered, and the GDP Growth rate was negative 7.4% and during this quarter the recovery was in the construction
and manufacturing sectors due to demand in these industries. The recovery
further expanded up to 20.1% in the second quarter of 2021-22. The bounce back
in GDP Growth Rate showed the whole world the potential of the Indian Economy to fight the Covid-19 pandemic.
Strategy for Economic Development:
No doubt, India is committed to improving its brand position and with the
help of the Start-Up initiative, it is gaining popularity around the world. The
innovation mindset is the need of the hour to improve its brand position. The
challenges to tackle the problems such as Non-Performing Assets (NPAs),
Expenditure on Defence, Expenditure on containment of Covid-19 pandemic, and
Vaccination; may be considered both a threat and an opportunity. It depends upon
the strategy of India for its Economic Development to grow in the post-covid
times. The biggest plan, India is focusing on today, to promote Artificial
Intelligence and the Internet of Things (IoT) in its approach to boost the whole
economy.
Digital Transformation in Each State of India:
The State Governments under the guidance and directions of NITI Ayog promote digital transformation initiatives with the flow of data and information at a higher speed among the economic sectors. The increasing number of incubation centers,
tech start-ups, and re-engineering of Government processes to serve public
services at a higher speed; not only improve the economic status of each state of
India but also increase the potential of effective and efficient use of public
financial resources.
Preventing Businesses and Safeguarding Jobs:
The countries around the world including the United States and Russia;
prevented businesses and tried to safeguard the jobs of citizens in the
companies with the announcement of relief packages. The United States announced a package of around 10% of its GDP to prevent the businesses suffered from Covid
while the United Kingdom announced almost 15%.
The Indian businesses also require tax rebates, holidays, cheaper loans to invest money in purchasing raw materials, and payment of salaries of the employees. The rebuilding economy in the future requires a strategically planned approach for improving the supply of goods and services and containing inflation due to scarcity of resources. How to save jobs and make a business self-sufficient to meet its requirements, is a great challenge.
*Copyright © 2021 Dr. Lalit Kumar. All rights reserved.
This article is written by Dr. Lalit Kumar Setia; a renowned author and trainer. He completed his Doctorate in Commerce from Kurukshetra University Kurukshetra and MBA in Information Technology from GJU, Hisar. He also wrote two books, 15 research papers, and organized more than 200 Training Courses during his working period since 2006 in Haryana Institute of Public Administration, Gurugram. The article was published on 18th September 2021 and last updated on 21st September 2021. The writer can be contacted on lalitkumarsetia@gmail.com
