BUSINESS REVIEW OF ECONOMIC POST COVOID-19
So, we are here again with our blog on review on economy post Covoid-19 . The on going pandemic has created a health and economic crisis worldwide. Amid the coronavirus pandemic several countries around the world restored to lockdows to flatten the curve of the infection . These lockdown meant confining millions of people to their homes, shutting down business & ceasing almost all activitiy . According to IMF the global economy is expected to shrink by over 3% in 2020 - The steepest slowdown since the Great Depression of the 1930s . In India we hope to attract several companies that may shift it's operations form China. While it's seen as an opportunity to propel India to be an economical powerhouse, but we see the local manufacturers trying desperately to stay in the market.But why should these local manufacturers be helped? When you have big multinational companies coming..The answer is simple the goods produced by the local manufacturers are comparatively cheaper than that of the MNC's, they also provide employment hence forth people can earn money.And it also happens sometimes ( not always) these MNC try to exploit the works by under paying them pricing there products higher so that they earn their profits and so on. We don't say that they totally ignore these foreign companies because they surely produce a very fine quality of goods.And many foreign industries are opening their manufacturing units here in India, cheers to that!! So we say that there should be a mutual contract between the both. If they work hand in hand then the end result would be a win for the country as the business booms.
There are many ways to boost the business. Banks should give the Business new Loans or enhancement of existing Loans with nominal interest Rates. For this RBI Should take the banks burdens. This situation has to be taken at war foot bases.
Government has to give the rebates in Electricity Charges to Companies. So that Companies Goods cost will be reduced, and selling price also will come down, so that customer can spend money on more products.
What ever payments are coming through foreign currency should be encouraged i.e the FDI.
The taxes on the essential goods should decrease where as in luxury things there can be an hike like Exotic cars, watches, jewellery etc.
The steps should be taken very fast for welcoming the new companies from other countries with this small ancillarys can be started and employment can be generated.
Govt Should see that peaceful situation is maintained with other countries, so that govt can save lots and lots of money, that can be spent for business growth as most of the economy money is spent on the arms and ammunition then there will be no money left to channelize it on theother things like factories, people's welfare, school colleges, roads etc as there is no peace in the country..
Supply & Chain System should be in tact always for all products.
All we want to say is Economy and livelihood are interrelated. If people have employment they earn,if they earn they spend and of they spend it gets contributed to the economy, so this cycle goes on and on.
And the next main thing is the interest on house loans or personal loans should be decreased.As a middle class family is the one who suffers the most as they live in the rented house where half of the salary goes in to the payment of rent and then the rest of yhe money is either turned in to FD's or goes into the payment of various fees and bills. Just for example if a person earns 100,000/- per month then around 30k is gone for house rent , 10k for electricity,water and municipal bill, then around another 10 k is gone into children fees and the other things, then around 15k for fooding if its a family of and then the govt takes some part of your salary as tax. Then the rest he might make it in to fd's or for saving for old-age. So where can he spend in other things?
Then next coming is to the educational sector, Where in India its almost as business where the govt school are not well maintained and don't have adequate facilities, And the private one give the best of the class for every thing but the fees are way too high. It costs a fortune for the parents to make their child study at a good educational institute.
Like when i was schooling the yearly fees was 1.75 lakhs. So it might not be possible for some group of people to make their kids study in these kind of school and they have to adjust to the lower varient. Same is with the college their course fees is way more than what that student is going to earn after there placement is done..
For example the Jindal global law school where the course fee is 36.5 lakhs for 5 years but when they apply for campus placement the max salary is around 15lacs per annum.
So the government see to that there is no exploitation by these private institutions and should invest on the govt schools and colleges and keep a check on their working. Education is everyone's right and no one can provok it.
The next is the Medical sectors.
Health care is the responsibility which has to be taken care by government. The doctors availability has become very costly in the country and a common may not think of approaching the doctor as they fall prey to the quacks.
The cooperative hospitals are conducting unnessary test not releated to the particular disease which result huge bills.And so the government has to take steps against these bullying. As regards to the government doctors their private practice should be strictly banned.
And next coming to the food sector i.e agriculture....
There should be a strict checking on quality of goods so that any food material cannot be adulterated and it speaks on the health point of view.The black marketer the holder are to be discouraged . And there should be a check on the artificial inflation caused by holding the stock and letting the demand increase so as to bring inflation .
Now we would like to throw some light on facts too . Within a month or two unemployment rose from 6.7% to 26 % . During the lockdown an estimated of 14 crore people lost their jobs while salaries were cut for others . Supply chains have been put under stress with the lockdown restrictions in place. Initially there was a lack of clarity in streamlining what an essential is and what not . A large number of farmers who grow perishables has also faced uncertainty . Major companies like Ultra Tech Cement , Tourbo have temporarily suspended or had significantly reduced their operating . Young startups have been impacted most as funding has fallen . After the announcement of the economic package in Mid may India's GDP estimate were downgraded even more to negative figures signalling a deep recession.
So, here are few steps we all can do together to minimise the effect .
When examining ways to reduce expenses, don’t even think of cutting out health insurance from your budget. Health insurance is a necessity that every family must have to protect them against medical expenses in case of hospitalisation. “Health insurance acts as the perfect wealth protector in one’s portfolio,”
Reduce discretionary spends
They say a penny saved is a penny earned. In a slowdown, you should examine your expenses to identify the ways to earn more.
KHUSBOO&JAGANATH
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