Two years since Article 370: A major success for the NDA?

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  Two years after Indian parliament revoked the autonomous status of Jammu and Kashmir, Prime Minister Narender Modi’s government seems to have succeeded in bringing the region under its direct control.On 5 August 2019, a proposal to abolish Article 370 and 35A implemented in Kashmir was introduced by Home Minister Amit Shah in the Rajya Sabha. After which President Ram Nath Kovind also approved it after the resolution was passed in the Rajya Sabha. After getting approval from the President, Article 370 and 35A were abolished from Jammu and Kashmir. After this big decision of the central government, Jammu and Kashmir and Ladakh were separated and divided into two separate union territories.   After the abrogation of Article 370 and 35A, Union Home Minister Amit Shah had said, 'Now our country can move forward on the path of peace and development.' He said that this step will further strengthen the policy of zero tolerance towards terrorism. Shah exuded confidence th

Current Scenario: Impact of Corona on Economy

The biggest problem around globe is novel corona-virus, More than four million confirmed cases from 187 country are reported till now. The impact on the global economy may be huge, something not witnessed from the ages. This is going to be very awful for many Indian who are dependent on daily wages and monthly salaries. Indian corporates  have started cutting salaries and perks. A lock down to stop the spread of corona virus has seen the 122 million people loss their job In April alone. India's Unemployment rate is 27.1% according to the Center for Monitoring the Indian Economy (CMIE). The new data shows India's unemployment figure are four times that of US.  Unemployment hit 23.5% in April, a sharp spike from 8.7% in March. This is attributed to the lock down which brought most economic activity- except essential services such as hospitals, pharmacies and food supplies- To a standstill. The trade impact of corona virus epidemic for India is estimated to be about 348 million dollars and the country figures among the top 15 economies of the world affected as slowdown in China disrupts world trade, according to a UN report. Whereas according to Asian Development Bank Covid-19 outbreak could cost the Indian economy between $387 million to $29.9 billion in personal consumption losses. For India, the trade impact is estimated to be the most for the chemical sector at 129 million dollars, textile at 64 million dollars, automotive sector 35 million dollar, electrical machines at 12 million dollars. India's services sector recorded its largest on-month contractions in business activity and new order, the services PMI fell to a mere 5.4 in April, indicating the most severe contraction in services. The services PMI is based on business activity, new export business,outstanding business,price charged input, employment and future activity.The PMI is a index  of perception of how sector will perform. The reading can vary between 0 to 100, with a reading above 50 indicating an overall increase compared to previous month, and below 50 an overall decrease. Meanwhile, the manufacturing PMI stood at a mere 27.4 April, which was 51.8 in March. The data has pointed to the sharpest deterioration in business condition across the sector since data collection , began over 15 years ago. Medium,Small and Micro Enterprises (MSMEs) have been the worst causality of Covid-19 induced lock down. According to the latest available (2018-19) Annual report of department of MSMEs, there are 6.34 crore MSMEs  in the country. Around 51% these are situated in rural India. The MSME sector in India employs over 100 million people and accounts for 45% of manufacturing output and more than 40% of country's export. While the government government's package of ₹1.7 lakh core promises some relief for companies under various sectors, none of the measures specifically addressed the needs of MSMEs sector. ICRA rating cut the GDP forecast of country and expect only 2% growth in this fiscal year.while the standard chartered and fitch ratings even suggest zero Gdp growth or negative growth if the lockdown persists. Although many economists have been optimistic about the coming year like moody ratings suggest a 6.5% Gdp growth rate for FY 2021-22. 








Comments

  1. Yes alarming situation arised especially on economical condition.

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  2. Very informative article, good work 👌

    ReplyDelete
  3. Corona is somting that us dosen t expect..but every thing will be alright...

    ReplyDelete

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