The startup companies which were promoted as the lions of the “Make in India ” campaign have fired close to 15000 employees giving lockdown as the reason for the retrenchments. The ill-planned lockdown brought the already ailing Indian Economy to a grinding halt.
“In March and April 2020 this fall, of course, has been precipitous, but even if we leave aside these two months which fall within the pandemic period we find that between April 2011 and December 2019 there has been a 38 percent fall in the All Commodity Price Index prepared by the IMF (base 2016),” Prabhat Patnaik – ‘The problem of external Debt.’
3. The State of Indian Economy: 2012 onwards
The Indian economy was growing at a faster pace between 2012-2016. After which it was hit by the two major blows- demonetization and the GST. This caused great damage to the unorganised sector and led to the shutdown of many smaller businesses and increased the unemployment rate drastically.
Many experts have time and again warned of such shocks to the social and political system. In 2018, Raghuram Rajan also highlighted that Demonetisation and GST held back the Indian economy.
From 2017 onwards, while the global economy was peaking, the Indian economy was seeing a steady decline.
Also read: Unemployment: What Could Be Done But Would Not Be Done
According to data released by the Centre for Monitoring Indian Economy (CMIE), India had an unemployment rate of 7.2% in January 2020 with the Urban unemployment rose to 9.7% in January, up from 9% in December 2019. It stood at 7.8% and 8.6% in June 2019. It shows that job loss is not new for many.
But the numbers skyrocketed during the month of April-May after the announcement of lockdown. The unemployment rate saw a steep rise as April- May 2020 stands at 23.4%, a whopping three-fold increase since January 2020.
Readability of this news in-between other text links and advertisment is a problem. Can be better than this.
Very good title.