The emergence of uncalled virus COVID-19 has already left a big hole in the economies all over the world including India. The virus has led to the worldwide shut in businesses and has become the matter of concern for the countries. The world is facing humanity’s biggest crisis since World War II. Almost every country has been affected by the devastating Coronavirus. An outbreak from China has gone everywhere.
On 23rd March, 2020 India under the leadership of Honourable Prime Minister enforced the biggest Lockdown on the earth with over 130-Crore people going under the lockdown. It was a right and a well timed decision as we have no other option till date to fight the pandemic. The Decision though will have a huge impact on the economic condition of India. As per the former Reserve Bank of India governor Raghuram Rajan India is perhaps facing its greatest emergency since independence. He also compared it to the 2008-09 financial crisis and was of opinion “The global financial crisis in 2008-09 was a massive demand shock, but our workers could still go to work, our firms were coming off years of strong growth, our financial system was largely sound, and our government finances were healthy. None of this is true today as we fight the coronavirus pandemic”.
After the pandemic is over major steps as to be taken by the government bodies as well as general public to put our economy back to its feet. Some of the Suggestions which can be followed are:
1. Promotion of Make in India-The Government needs to further encourage make in India by providing reliefs and concessions to the companies. The Government should also make sure that Balance of Trade is positive i.e. Exports are more than imports.
2. Identification of new export markets- With many countries still dealing with the pandemic India needs to take first mover advantage and create new export market in the less ventured areas. The demand for the drug “Hydroxychloroquine” by many countries including USA has made India a well-known name in the export of pharmaceuticals and taking it forward India should put more efforts on such sectors.
3. Increase of Deduction limit for Income Tax– Many of the taxpayers will still follow the old tax regime and will claim the increased deduction. This will lead to increase in cash flow in the government treasury and can help them in boosting the economy.
4. Promotion of MSMEs- The government needs to promote the micro, small and medium enterprises and provide them with certain exemptions to enable them to work freely. These sectors form the basis of growth of our country where most of the people are involved in petty sectors earning their livelihood.
5. Indian Hospitality and tourism- After the pandemic is over, it is duty of every Individual to spend their money on Indian restaurants, resorts and tourist places instead of foreign ones. This will boost the Indian economy and will be a boon to the India hospitality Industry.