Focus on jobs, wages

THE disruptions caused by Covid-19 have driven home the point that India’s economic recovery is inextricably linked to the physical and financial health of its citizens. According to India Ratings and Research, the country’s year-on-year GDP growth for 2021-22 is expected to be 9.4 per cent, but it may drop to 9.1 per cent in case India is unable to vaccinate its entire adult population by December 31 this year. Though this deadline is unlikely to be met, there are some green shoots — the economic turnaround has been faster than expected, owing to a decline in the Covid second wave, a rise in the volume of exports and sufficient rainfall due to the revival of the south-west monsoon.

Expediting vaccination can boost confidence of consumers and investors, but at the same time there is a dire need to create jobs and restore livelihoods that were lost to the lockdowns. The buoyancy in the stock markets — Sensex breached the 56,000-mark for the first time on Wednesday — should not mislead the nation into believing that all is well on the economic front. India Ratings has noted that rural wage growth, both for agricultural and non-agricultural activities, has declined of late, even as daily-wage earners rather than farmers account for the biggest chunk of the rural population. The situation is far from promising in cities and towns too, with urban households grappling with a surge in health expenditure and bearing the brunt of income loss/stagnation as well as high consumer inflation.

Central schemes such as Atmanirbhar Bharat Rozgar Yojana and Pradhan Mantri Rozgar Protsahan Yojana need to be firmed up so as to maximise the gains. The government’s push for disinvestment and privatisation has triggered fears of more job losses and wage cuts. Even as the Centre is eyeing Rs 1.75 lakh crore in 2021-22 from stake sale in public sector companies and financial institutions, it has failed to reassure employees about protection of their jobs after the change of ownership. The government should make the most of the present lull (before the third wave strikes) to restore the people’s purchasing power to pre-Covid levels.