Covid-19 will be marked as an unprecedented epidemic in human history. It will be known not only for health infections, but also for the level of catastrophe in the world economy. It will be known as one of the economic crises that the world has witnessed. The Great Depression of 1929 was one of the worst financial crises the world has ever faced.
However, Covid-19 has caused a lot of problems due to the uncertain fight against the unseen enemy known as coronavirus. That is why any package to revive the economy also needs a time frame for an indefinite period to offset the economic losses caused by the epidemic. Because no expert can say for sure when the health catastrophe caused by this virus will be completely eradicated.
India, The country has announced a number of policies since last March. India’s incentive package includes a number of unfamiliar issues such as allocation of funds, expansion of liquidity. India has taken some steps to overcome this crisis that other countries have not taken.
India has imposed a nationwide lockdown since January 24. There was considerable haste in this announcement, as has been made clear in a few incidents. Migrant workers are in dire straits, especially due to the sudden closure of transport. Not only are they afraid of falling prey to the disease, but they also face problems in big cities like Mumbai, Delhi, Kolkata and Chennai. Due to these reasons, the GDP growth has not only created a major negative situation, but also a terrible sign of loss of life and livelihood.
In Indian government include providing rations to 600 million people for three months free of cost, one-time payment of Rs 1,000 to three crore poor senior retirees, and Rs 500 per month to 204 million women and floating people.
But even these small incentive activities are in question as there are plans to transfer all the money through banks. Because millions of people do not have bank accounts, they will not get this help.
Even though the loans are provided to small and medium enterprises, they will be afraid to take initiative during this recession. Again, this has created fears of increasing the bad debts of the banks.
This initiative is unlikely to succeed. Even if it works, the complications caused by the coronavirus cannot be overcome.
