The second wave of the china-originated virus has caused distress in the country. Experts had already predicted that this wave will have adverse impacts on our economy. However, the RBI (Reserve Bank of India) Governor Shaktikanta Das believes that this time the impact will be not as severe as it was during the first wave. But as per the latest report released by Azim Premji’s University, the poor section has been affected more compared to the rich section of India. The loss of jobs and income has made it even worse.
The report suggests that 230 million have been dragged below the poverty line by the second variant while the employment recovery has also ceased at a point and the quality of employment and incomes is constantly reducing. Some credit for the unemployment goes to the local restrictions put in order by the various state governments. The employment rate was at its worst in May-20 after scaling to 24 percent. However, the figure recovered by January 21 to 7 percent, and as of May-21, the unemployment rate is 9 percent.
The centre and the state governments should plan a cooperative strategy for sustained economic growth. Also, aggressive vaccination should be our prime focus as we need to inculcate the entire adult population to further mitigate the threats posed by the Covid-19.