Economic Challenges post COVID19- eCO(rona)mics2020
The 1990s saw India embrace Liberalisation, Privatisation and Globalisation and move away from protectionism and indigenous production. Consequently, the dynamics of our country’s economy have been driven by various stakeholders. It is easy for someone to believe in the ideology of collective growth as is evident post liberalisation of our economy, but if one tries to look through the lens of history, they would discover that the great reforms were a revival of India’s stand in terms of its contribution to the global GDP, before the 1700s. This was the period before we were invaded for spices that would add flavour into the diets of the colonisers.
The global trade is an intertwined web, that has shrunk the world and influenced major human interactions within its domain. It has put places and goods within reach, with minimal time constraints. Moving and migrating has also been an integral part of this complete ecosystem, since people have always been in search of opportunities and better livelihoods. In order to trade, people have also adopted practices from various cultures. And, this has led them to merge into trading communities more easily. Not only goods started travelling out of their places of origins, but cultures and practices were also carried along.
Not everything that migrated along territories benefited mankind. Diseases were also spreading across borders. The outbreak of the novel CORONAvirus (COVID-19) has been one such recent event that has upset the applecart. In the wake of this pandemic preventive measures have pushed nations into corners and isolation. The economic disruptions resulting from it have caused a slowdown in various sectors across nations. However, the nations need to manage their economy alongside the outbreak of COVID-19, which does not seem to be disappearing any time soon.
Along with the various issues leading to the Indian economic crisis, is the shortage in inventories arising due to heavy dependency on imports from China. This ranges across sectors like automobiles, pharmaceuticals, electronics, etc. A major reason for the dependency is the cost effectiveness and lack of skilled indigenious production houses. In turn, exports to other countries have also taken a hit and the situation is compelling us to depend on indigenious productions. The positive side to this is creation of opportunities to upskill our work force and using it to our advantage. Which would mean that by the time the new normal becomes our normal, we would be in a better position to negotiate investments from other corporations.
While Ayushman Bharat set us on the right track, its inherent benefit wasn’t manifested because of dearth of proper infrastructure and availability of services at the last mile. Acknowledging the change in norms for future gatherings, a lot of infrastructural amenities, like amphitheatres and stadiums will be utilized as a means to other ends. However, this doesn’t present itself as a permanent solution. While project Bharatmala would complement the efforts in channelising logistics as part of the supply chain, a multi pronged and integrated approach would also help in the last mile access to the health care sector as well.
With public outreach and interaction having been redefined, technology becomes even more vital in terms of mobilising essential goods and daily services among local communities. It is a matter of simply initiating and including projects that bring the community together on a common platform, wherein supplies and services find momentum through visibility and accessibility. An even more inclusive perspective could be bringing on board daily wage labourers; by enrolling them into delivery services and engaging them on a daily basis for compensation. Also, Direct Benefit Transfer as part of JAM(Jan Dhan-Adhaar-Mobile) trinity is another suggested initiative for effective compensation.
Since India has been mostly driven by its service industry concentrated in the IT sector, it is much needed for this workforce to provide consistent support and services to the crashing world economy. Such a support would reinstate the belief of the global economy in our resilience and perseverance, creating the most apt platform to attract investments post the phasing out of the pandemic.
Although there have been a lot of predictions around the corner projecting the future scenario in terms of few metrics, I believe the current focus should be on reviving the lost game. As and when we progress, continual beneficial disruptions and amendments will lead us to a place where we could conquer all the metrics positively. Short and medium term gains could be prioritised with a long term goal within our sight. The game in front of us would be more of a test match instead of a 20–20 format. Hence, constant evolution should be the mantra of the game.