The coronavirus epidemic has severely affected the country’s economy. Even before the onset of the pandemic, many sectors of the country, such as the auto sector, telecom sector and NBFCs were going through difficult times, but now after the pandemic, this problem has deepened to the level affecting the employment and economic potential of the general public. . The government has put money in the market to support the economy and is giving financial assistance to many industries, but former Prime Minister Dr. Manmohan Singh says that the government will have to take big steps to manage the economy for the next few years.
The former Prime Minister, in a conversation with the BBC, suggested three major steps for the government. He has said that the first thing that the government should do, it should ensure that people’s livelihoods are protected and their spending capacity is maintained by giving them direct financial support.
His second suggestion is that the government should provide adequate capital to trade and industries through government credit guarantee programs. He said that the third task would be to improve the financial sector through institutional autonomy and procedures. Manmohan Singh said that he would not call it an economic depression, “but a deep economic crisis was sure to come in the country for a long time.”
The Reserve Bank of India has also said that the condition of the domestic economy may worsen due to covid-19. During the announcement of the monetary policy on Thursday, Governor Shaktikanta Das had feared that if the infection of the Kovid-19 epidemic was prolonged, it could further dilute the condition of the domestic economy. He said that ‘if the epidemic is controlled first, it will have a’ favorable ‘effect on the economy. If it is prolonged, the monsoon is not expected to be normal, and the global financial market may have a ‘bad effect’ on the domestic economy.