Pandemic has played a demon in both private and public Indian sectors. The economy has seen a major contraction amidst the global crisis and everyone has suffered the brunt of it. People across the world have lost jobs and loved ones, not to mention the hope of ever finding a cure for Covid19.
That being said, there are a few sectors that have been affected comparatively more due to their independent weaknesses underpinning their financial slowdown. While the Prime Minister is all set for a successful second inning, there are a few sectors that are crying for help and need immediate attention. If not helped any sooner, nothing would be able to save them from going down the drain.
A hefty amount of questionable spending is involved in a few sectors like aviation, agriculture, travel, tourism, automobile, real estate, hospitality, and MSME. And these sectors have been affected immensely during the time of the pandemic. So, is the government going to do something to save these sectors from the wrath of the last two years to ensure their continuity? Here is a deeper look into the neglected sectors:
This sector has been living on the edge for the longest time. Even in times when there is a boost in the economy, this sector is hardly ever making any profit. And now that the pandemic has made the situation worse globally by hitting on the air travel negatively, the sector is only going to dogs. There has been a hefty revenue loss due to canceled travel plans of people everywhere.
If you want an example, take Jet airways, their saga proves how bad the situation is for the aviation industry. There has been a revenue loss and now the industry is knocking on government doors to ensure the taxes are reduced for the air turbine fuel or ATF. Amidst the noise, the government has guaranteed to extend help of all kinds but as the time passes the demands are still unmet.
Travel & Tourism
This industry represents approximately 9% of our GDP and effectively generates employment for around 8% of the population. The same people have been crippled due to the pandemic. According to CII, the Confederation of Indian Industries, the pandemic has hit domestic, inbound, and outbound tourism, and the state of travel is in jeopardy.
The situation does not look like it is going to get any better, any soon. Of course, the lockdowns have been lifted and people have resumed their usual life, but there is an underlying fear in travel now. The hotel bookings have gone down, and the revenue streams have eroded drastically with people canceling their plans. The loss figure for the industry is pretty alarming and the government needs to put its hand into this mess. The tourism minister has requested the government to release them from the stress a little. He has, however, not shared anything about an incentive package.
India is an agriculturally rich land and we have to ensure that this sector does not suffer the rage of a pandemic. There is a need for attention urgently to ensure the renewal of the resources while promoting science and research at the same time. And this is possible only if the government gives this sector the attention it deserves.
Another reason to ensure the development of this sector is that it will release us from the dependency we have on other countries leading to agricultural independence. Also, a major part of the economy is dependent on this sector, unless we are ready for famine, this sector should get an upgrade soon.
This sector has been successfully providing for approximately 15% of the GDP and accounts for half of manufacturing GDP and is seeking attention from the government desperately. Its contribution to the country’s export is not hidden either. The factories, even in the post-pandemic scenario, have not opened up to their full capacity with optimum production.
There has been a push toward cutting down the vehicle GST by a minimum of 10% by the state. It’ll help immensely in restarting the flow of transport. There has been no financial aid from the government as yet, however, they have been looking into the matter.
This sector may not need as much financial help, as it needs attention to ensure transparency. If the black money is bought back to the country, a major amount of debt will be cleared for good. It will help further boost the economic push and improve the situation immensely.
The MSME or micro, small, and medium enterprises have been the spine of the corporate structure. One-third of the GDP is standing strong on the shoulder of these enterprises. It employs more than ten crore people, and these people are facing a hard time surviving amidst the pandemic. The government has not cleared the pending dues of these enterprises that approximately amount to crores.
There is a severe shortage of capital which has led to the loss of livelihood, employment, labor, etc. However, the government keeps announcing packages for these MSMEs, it doesn’t look like it’s helping much. Now, these enterprises are looking forward to getting some help from the ‘Atmanirbhar Bharat’ plan.
Different ailing sectors are dealing with the situation patiently, and hoping answers will come soon from the PM office. Let’s just hope the scenario for employment and capital crunch changes soon, and people get back to their routine lives. The times are tough, and the government needs to act on them quickly.Add to favorites