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Coronavirus to bring the wave of unemployment as 135 million Indians may lose job

COVID-19 cost India almost up to 135 million jobs could be lost and 120 million people might be pushed back in to poverty in India, which will have a hit on consumer income, spending and savings, says a report.

As per the report by international management consulting firm Arthur D Little, the worst of COVID-19’s impact will be felt by India’s most vulnerable in terms of job loss, poverty increase and reduced per-capita income, which in turn will result in a steep decline in the Gross Domestic Product (GDP).

The report said “Given the continued rise of COVID-19 cases, we believe that a W-shaped recovery is the most likely scenario for India. This implies a GDP contraction of 10.8 percent in FY 2020-21 and GDP growth of 0.8 percent in FY 2021-22,”

The number of COVID-19 cases in India has crossed 90,000 and the nationwide death toll has touched 2,800 so far.

However the report said “Unemployment may rise to 35 per cent from 7.6 per cent resulting in 136 million jobs lost and a total of 174 million unemployed. Poverty alleviation will receive a set-back, significantly changing the fortunes of many, putting 120 million people into poverty and 40 million into abject poverty,”

Barnik Chitran Maitra, lead author of the report and Managing Partner & CEO of Arthur D Little, India and South Asia said “India is headed towards a W-shaped economic recovery with a potential GDP contraction of 10.8 per cent in FY21. An opportunity loss of USD 1 trillion is staring India in its face,”

“For its USD 5 trillion vision, a radical economic approach is needed, centred on an immediate stimulus and structural reforms. The Prime Minister’s visionary ‘Atma Nirbhar Bharat Abhiyan’ is a good start to this new approach.” Maitra further said.

The steps taken by the government and the Reserve Bank of India, are lauded in a report but a far more assertive approach may be required given the magnitude of the adverse economic output.

It further said the government should launch “Make in India 2.0” to capture global opportunities, build ‘Modern India’, accelerate Digital India and Innovation, strengthen global investment corridors with the US, UAE, Saudi Arabia, Japan and the UK, debottleneck land and labour and transform banking and financial markets in a bid to secure a sustainable economic future for 1.3 billion Indians.

-Davinder Panesar, NMTV News

NMTV

NMTV was launched in the year 1999, and is Maharashtra only accredited 24-hour, 7-day-a-week local cable news station of Navi Mumbai airing news bulletins and programs in English, Hindi and Marathi. NMTV represents the state-of-the-art in local television news coverage, delivering on a commitment of responsible and community-oriented journalism on an around-the-clock basis.

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