Agriculture can revive the economy hit by Covid Crisis

Aastha Gupta.
These are really some adverse times for our nation and the world. People are gripped with the fear of disease and death from COVID-19. This fear is ubiquitous and transcends geography, religion and class and will inevitably alter many of the industries at some level. The inability to control the spread of the novel coronavirus and the lack of a confirmed cure for the disease have exacerbated people’s concerns. Such a heightened sense of anxiety among people can cause tremendous upheavals in the functioning of societies. Consequently, disruption of the normal social order will inevitably impact livelihoods and the larger economy.
The economic impact of COVID-19 has been much discussed. There is unanimity among economists that the global economy will experience one of its worst years in history. India is no exception and cannot buck the trend. While estimates vary, it is clear that, for the first time in many decades, India’s economy will contract significantly.
To revive the economy out of the effect of the covid -19.Finance minister Nirmala Sitharaman also promised more policy interventions to revive the economy, and emphasised that green shoots are visible and the agriculture sector which is driving growth.
At a time when agriculture activity has been robust, data show that just in the month of June, 62 million people demanded work under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) programme at minimum wages. This is thrice the usual number and 10 times more than the total number employed by the entire listed corporate sector. It is evident that most of them are displaced non-agricultural workers, struggling to make ends meet. Such is the scale and enormity of despair in our labour force. Fortuitously, the MGNREGA programme has proved to be a bedrock of support in such times but it is not enough.
There is a dire need to restore confidence in the financial system which acts as the vital lubricant for the economy. COVID-19 assistance measures undertaken by the Reserve Bank of India (RBI) and the government such as interest rate reductions, credit guarantee and liquidity enhancement schemes are welcome steps, but they have largely failed since banks are not confident of lending.