Corona, lock down and economy along with the compulsion and strength of the Indian people & Government

Corona ! An epidemic! Who thought a few months before today that life would become something like this, everything would stop and we would all be living life under a bond, maybe no one else can think like this, yes it is definitely In some part of the world, this disease has started 6 months ago, and until this attack no one can think that it can happen in my country. Even in public, the thought remains that till today it cannot happen to me or my family members and are not following the lock down.

Lock Down and Economy

The economy of any country depends on the demand and supply, and the balance and imbalance of both of these keeps the economy going in increasing and decreasing order. Manufacturing, distribution and reaching the end consumer and its consumption, all these are stalled today and consumption has also reduced considerably, consumption in India has decreased for a long time due to which the economy shows its decreasing order for the last three years and collapsed today;

Manufacturing Stalled !

Construction Stalled !

Distribution Channel Stalled

Consumption reduced a lot ! (Excluding consumption of essential commodities)

Now this sequence is definitely completely broken, the wheel of economy has stopped completely, which not even have satisfying speed before. The main thing in the wheel of market economy is Food, cloth and house; these basic things have been the main need since the beginning of human beings and still are today. And on this basis, iron, cement, minerals, food items, clothes, and vehicles, house, Mobiles, TV , Internet which are added to the most essential item after food, cloth and house. Policies of the government and Bank works as fuel to drive economy wheels, the policies of the bank and the government make the money reach from the public and business to the government and again to the public under different policies.

As it is well known that most of the population of India lives in the village and agriculture has been the main task of India though which was not given much attention from government. Yes, we have always weakened them by giving them free loans, loan waivers, not only financially but also mentally. The mentality of the farmer has become that they will probably have to remain poor. Rather, by not allowing any government to enable them to become competent ie a proper manufacturing method, distribution method for the farmers and the subsistence system of the consumer, etc., on the contrary, they were always given a loan waiver and strengthened the middlemen.

You, as a common man, can try to understand how the income from the daily sale of the shops around you has reduced, we think that the grocery shops are earning but also their own daily are able to sell less than their previous sales.

It is better to know about the daily earners and eaters that they do not have any capital, which they spend in this unwarranted bad time and spread their life is dependent only on the government, some good people.

It has to be believed that the Manufacturing, distribution system, transportation, consumption, these four wheels is stalled and there is no such system yet. Already banks, vehicle sales, steel and cement sales had put the country’s economy on a ventilator and now there is a shortage of oxygen (complete lock down) ie now the life of the economy is in God’s faith or rather on a better vision plan. Due to this lock down they will not be able to handle the life of the economy for very long time. These are the moments of life and death for the economy.

Compulsion of the general public –

They have no work, unemployment; no means of continuous earning, markets are inactive and uncertain for the future is in the mind ie negativity has come. Government’s Compulsion – lack of a single visionary scheme, collection of GST tax is not as per expectation, no plan to speed up the stalled economy, no strong economic circle of banks, use of safe funds from RBI frequently. Only businessmen are concern about the future economy whereas it is very clear that there is a delayed acceptance of the government, yes! The economy has weakened.

Public’s strength –

The Indian general public knows how to get their work satisfactorily done in less money. They quickly adapt standard of living as per their basic requirements. People also have great faith on today’s Prime Minister.

Government’s Strength – A strong absolute majority government whose image is very different from the previous governments and the public is also hopeful. The government has a prime minister whose voice a common man listens and agrees. The government has more than four years to go for the economy, which can continue its long-term economy plan.

Work on some far-reaching plan from the time of today’s lock-down till the time of opening of the lock-down completely. For this, a team of scholar economists and former finance ministers of the country should be planned effectively on this. This is the problem of the country and not of one government of one political party.

After the lock down is opened –

Instant Cash Required in the Market –

  • The government shall have to immediately loosen the restrictions imposed on cash transactions for a few years so that the lack of cash liquidity in the market is met.
  • GST rates will have to be reduced, the maximum rate should be up to 12 percent, and this step will also bring instant brightness in the market.
  • Banks shall have to reduce their lending time in present this time is still too much.
  • Appropriate steps have to be taken to increase vehicle sales.
  • Availability of housing loan at 7 percent interest.
  • Construction of roads, bridges, Public Utility Building etc. should be done on a war footing in the country.
  • Provide some special exemption in income tax or GST or in both to the employer providing employment in our own country.
  • Allow transaction in cash up to a limit in purchase and sale of small land or house.

The government should do all the work so that cash comes in the market immediately.
The Indian economy will be strengthened only when the money reaches the village and when it arrives in the city, overall the shopping capacity of the person of the village will increase only then consumption will increase, there is no manufacturing problem in India, market is not being made according to manufacturing capacity of India or so. According to the increasing manufacturing, consumption is not increasing because the people do not have money in their hands because of this their purchasing capacity is not increasing.

Identification of a strong economy depends on the ability of each person to buy and consume the product.

Therefore, the government will have to work on the purchasing power of the general public; as a result, the wheel of the economy will spin fast automatically.


Author Bio

Qualification: CA in Practice
Company: A B Y and Associates
Location: Raipur, Chhattisgarh, IN
Member Since: 15 Apr 2020 | Total Posts: 2
Practicing Chartered Accountant Secretary of Raipur Branch of CIRC of ICAI - 2018-19 Secretary of Income Tax Bar Association, Raipur- 17-18 Cicasa Chairman 2016 Raipur Branch of CIRC of ICAI Secretary in 2008, JCI Raipur Nobal View Full Profile

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March 2021