August 23, 2020
The coronavirus pandemic came as a crushing out the dreams of millions of middle-class people globally and worsened the economic woes since early 2020.
When the novel coronavirus first emerged in the Chinese city of Wuhan, little did Indians have imagined the virus would hurt them so unfavorable.
Before the pandemic hit India, the country has already witnessed a surge in economic hardships such as unemployment, which was at a four-decade high. Companies were recurrently laying off employees.
The country’s existing economic problems accelerated drastically since April 2020, soon after the government announced a lockdown.
The pandemic came crushing to the dreams of millions of middle-class people in India and worsened India’s economic woes.
For decades, India has a vast middle-class population and has been a critical engine to drive the economy, which has contributed to the growth of diverse sectors.
This correlation is the reason why pandemic toppled the country’s growth dynamic system.
How Middle-class incomes worst hit
Data sets on demand, employment, and household incomes showed how the virus-induced slowdown collided India’s middle class and livelihood.
Sources from the Centre for Monitoring Indian Economy(CMIE), revealed that the pandemic had worst hit the incomes of India’s middle class and it could worsen if the situation does not be on the proper watch.
“The hit on incomes in the interval of lockdown felt among the household income spectrum, and the worst hit is the middle classes and the upper-middle classes. “Middle-income households, at the higher income levels, have suffered much as they had a lot more to lose. Their loss is more than 30 percentage points,” CMIE highlighted in the report.
Unemployment catered the highest among the middle class, engaged in salaried jobs of urban and semi-urban regions struck.
A report recently highlighted that more than 1.8 crore salaried jobs, which is a whopping 22 percent loss during the ongoing economic crisis, whereas nearly 50 lakh of them in July.
India’s middle-income group constructs the largest source of employment and cash flow for the economically weaker sections, which makes them an integral part of India’s recovery.
In the present situation, nothing seems to be in action in favor of the middle-income group, with hardly any help from the government except the loan moratorium.
Though, many argued that the middle class requires a lot more than just a moratorium if the country demands faster recovery of the economy.
A more robust middle-class population would boost demand and economy. However, for a holistic recovery of the Indian economy, the government calls to find ways for the middle-income families, who now find themselves in limbo.
Written By- Mousami jena
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