How did India save its economy from sinking?

After Corona, the economy of America, which is called the world’s biggest economic superpower, is sinking. America is in danger of recession, discussions of America’s recession are happening everywhere. The feet of the US government are swelling, the feet of the Americans are swelling. On the other hand the situation in China is more delicate, China is fighting with two troubles simultaneously and is not able to get out of a single trouble.
In China where Corona was born, Corona has not been controlled yet. Along with this, constant questions are being raised on his vaccine. The economic condition of China, which is unable to deal with Corona, is also doomed. Those pictures have come in front of us in which we have seen that people are not even able to withdraw money from the account.
In such a situation, the question arises that how did India save itself from Corona? Which economic policies did India adopt which proved to be a boon for her? How India’s economy remains strong even after fighting such a big pandemic? In today’s article, we are going to tell you what policies India adopted during the Corona epidemic, due to which India’s economy definitely staggered but did not sink.
‘Other countries, whether they are developing countries or developed countries, have given special emphasis on increasing demand to save their economy. On the other hand, India focused on both demand and supply. Along with this, India also quickly accepted the fact that the corona epidemic would have a negative impact on the food supply.
During this time, the central government took many more important decisions. The government reconsidered how much to spend on infrastructure. In order to strengthen the supply chain, the government made several structural reforms, along with this, the government started the incentive scheme i.e. incentive scheme to increase production in specific areas. Due to this, it was decided that the food sector of India should not be affected much during the Corona epidemic.
During the Corona epidemic, the focus of the Modi government was on keeping the supply chain intact, not allowing production to go down, while on the other hand the government was also making sure that people do not go hungry and they do not stop spending completely. Do it For this, the government went ahead with three main agendas-
Through the Pradhan Mantri Garib Kalyan Anna Yojana, the Government of India has provided pulses and rice to about 8 crore people of the country. The food grains that the government distributed among the people did not put any financial burden on the government’s exchequer. In fact, the free food grains that the government was distributing were the same grains that the Indian government preserves in view of food security.
Along with this, the government took another big and important step that sent money directly to the accounts of the needy people. The government used the Aadhaar card for this and also used 400 million accounts that were opened after 2014 under the Pradhan Mantri Jan Dhan Khata Yojana.
Along with this, the government noticed that many people have nothing to give bank guarantees. But they are in dire need of taking money from the bank, so the Indian government took the guarantee of these people.
This step also becomes very important as the financial sector builds the credit score of the borrower. In such a situation, when the government itself takes the guarantee of the borrower, then there is no doubt about its credibility. There is no doubt that the borrower has to repay the loan on time to maintain his credit history, but a large part is of those who know that the government has taken their guarantee, so they do not return the loan. .
Special care was also taken while giving loan against government guarantee. Special emphasis was laid on the fact that only those who really need it should get it. In this way, instead of giving 100 rupees directly, the government took the route of guaranteeing the loan. This decided that when the economy would go on track, the government would have to spend very little on guarantees.
Now compare this policy with the policy adopted after GFC in 2008-09. At that time the loan waiver of farmers was done, which only benefited the rich farmers. There was a supply chain interruption as well as double digit inflation for almost a year and a half. Had India adopted a similar symbolic policy during Corona, the inflation could have been around 20 per cent and certainly it would have been for more than a year and a half. With this, the supply chain would have been completely ruined and only the rich would get the benefit of it.
During the global financial crisis, India did what the world did during the Corona crisis. In simple words, adopt this policy that keep increasing the demand, increase it in such a way that tomorrow means there is no future, but during Corona, India was fighting a completely different battle due to clear policy and bold decisions.
In this way, by understanding the demand side, taking steps for it and making the supply chain seamless, the Modi government at the Center has put India’s economy in a better position than the world economy. In this way, one thing is more clear that the Indian government handled the economy better during Corona than other countries.