The second wave of the Corona epidemic has broken the back of the economy. Center for Indian Economy (CMIE) Chief Executive Mahesh Vyas released this data on Wednesday and said that in the last two months, 2 crore 27 lakh people have become unemployed.
Out of the total 40 crore jobs in the country, 2 crore 27 lakh jobs have ended in April and May 2021.
According to Mahesh Vyas, now that economic activities are getting back on track, it will still take a long time for the economy to recover. Since the second wave of Corona, the income of 97 percent of the families of the country has decreased.
The unemployment rate which was at 8 per cent in April has gone up to 12 per cent in the month of May.
At the same time, according to the data of the National Statistics Office, India’s growth rate in the financial year 2021 was -7.3 percent, which is the lowest in the last 40 years.
Due to the first wave of Corona and the strict lockdown in the country for a few months after March 2020, the GDP growth rate has fallen to a record -7.3% in FY 2020-21. This is the biggest drop in GDP ever.
How big is this decline can be gauged from the fact that the GDP growth rate in FY 2019-20 was 4%, although it has definitely decreased compared to the estimated fall of -8% of GDP released in February.
K Subramaniam, Chief Economic Adviser, Ministry of Finance said, “The decline in the first quarter of the financial year 2020-21 was -24.4%. Now the economic contraction in 2020-21 is -7.3% which is a marginal improvement from the estimated -8% in February.
On Monday itself, the Ministry of Commerce made public the production figures of 8 core industries for the month of April, which shows that the crisis of the economy is deepening again in the new financial year.
It is clear that it is becoming more difficult for India to fight the falling economy. But the government is busy celebrating only 7 years.
The general public is bearing the brunt of the poor economy and as always the government is celebrating it with its eyes closed without giving any help on it.