Economic development is the backbone of any countries’ development .The global economic downfall has even proven to be detrimental for the Indian market. The industries have become fragile and the owners are roaming around helplessly. Small entrepreneurs who had invested aiming for a profit are standing still. The government agencies and banks are still pestering them for their dues. It had been a strenuous time for secondary as well as tertiary sector.
While the people in these sectors were already struck hard by the global recession, the corona pandemic shadowed all their hopes for betterment in future. The prolonged lockdown shattered away all the possibilities of the factories and service sectors of coming out the global economic crisis. The pandemic proved to be a deleterious time for them.
Even in this epidemic situation, these industries and firm owners who do not have a source of income and thus are forced to maintain their and their employee’s livelihood on their savings. Each organization is facing a straitened condition in which they need to pay their employees and maintain their household expenditure too, from the reserved money which would help them to cross this difficult time. Although not everyone is capable of this and are hence facing bankruptcy.
The question arises, what if the situation continues for the whole year? These people are carrying a load on their shoulders not only of their families but also of their employees. These businessmen are not considered to be vulnerable and thus they do not have any monetary help from the government.
But if the situation continues, India would see “Bankrupt Millionaires”. They have land, they have asset but they are unable to generate anything. They are unable to run their systems, because they would not be left with so much money to start their businesses all over again and henceforth they would be ruined. They have no production so no earning and thus they are unable to pay their overheads and buy raw materials.
Leading to withering businesses and making it hard for them to sustain. They would be having luxurious vehicles to move but no money for the fuel. They would be having memberships of the lavish clubs but no money to renew it. They could not look towards the banks for help as their units would have been declared NPA.
Poor may live on charity and some governmental schemes too. The large-scale industries could easily come back. The upper service sector does not suffer. The people who are left belong to the middle class, and exceptionally owners of these micro and small scale industries who are understood to be financially very much stable, but these are the people who are most hard struck in such a crisis.
Ananya Upadhyay – 12 A