India's Economy Adrift During The Pandemic

 India’s Economy Adrift During The Pandemic 

The management of the COVID 19 pandemic by our government has been bad but the management of the economy facing the consequences of the pandemic has been worse. Every single economist in the country knows that after the Ganesha festival in Aug - Sept the economy sees an upswing in demand as the festivals ring in one after another across the country with the Durga Puja, Diwali and then Christmas and New Year coming in. Festivals means people mingle believing that their faith in God overcomes all obstructions, difficulties and that they get an immunity shield against disease. With people mingling the pandemic will gain momentum and spread which is what is happening precisely now.  Other than that it was predicted that the pandemic would peak around the world in the Aug - Dec time span and right at the beginning of this surge we have Unlock - 4 of India ignoring the danger of the spread of the virus but pompously touting that the Indian economy and society cannot remain shut any longer. But what did our government do about the economy in the face of the pandemic and to lessen its impact on the people. There were no tangible benefits which were offered to the people that would help them tide over the crisis and stand on their own feet. Just giving free rations of food grains and trickles of money once in a while into the Jan Dhan accounts is just not enough. Sustained support was required when people are faced with situations like the current pandemic which reassures the people that the government is behind them with help and support so that they can build their lives all over again and stand on their own feet. The pandemic has affected all strata of society and just catering to the BPL and near BPL segment of society and those with Jan Dhan accounts is not enough. There has been a major loss of jobs in all sectors of industry and those providing services. This category of people also require support but the government has not even looked at them. As for industry much was made out about what the government is doing for the MSME sector but the initiatives turned out to be a raw deal. The common refrain of the government is to make everyone atmanirbhar, they want everyone to take a loan and then the government will give you an interest subsidy. This is absolutely insane logic where by analogy if a hungry person comes to you for food, you tell him I will give you a loan but I will charge you a lower interest. With this kind of thinking, it is no wonder that our banks and financial institutions are reeling under NPA's. It is not only that but the government in its wisdom accepted that the pandemic has affected industry and so said that it is declaring a moratorium for 6 months at the outset on loan instalment payments. With the moratorium period getting almost over, the industry are finding that the  financial institutions are charging interest on the loans during the moratorium period. Is there any meaning to such kind of initiatives which negate the very purpose why the initiative was given in the first place. The matter has gone to the Supreme Court now which was unnecessary if the government had thought out a well constructed plan to help industry. Our Finance Minister Nirmala Sitaraman is completely out of her depth to serve in that position and needs to thank the pandemic for continuing on the job because the planned Cabinet reshuffles have been shelved for the time being. Thus during the pandemic the country's economy continues to aimlessly drift like a ship which has lost its engines on the high seas in the midst of a storm.