Six years ago, on 28th August 2014- The Pradhan Mantri Jan Dhan Yojana that was launched with an ambitious aim of banking the unbanked.
This scheme aimed at opening of basic saving bank deposit account with relaxed KYC, zero balance, and zero charges for the poorest of poor from villages to cities.
It also covered other benefits like- the issuance of debit cards, with free accident insurance coverage of Rs. 2 lakh and micro-insurance, overdraft for consumption, micro-pension, and micro-credit facilities.
Even before the outbreak of Coronavirus, Government along with financial institutions and other monetary bodies has been trying hard to push up our economy in the positive directions. These efforts have demanded amplified attention now and it will be crucial in economic recovery of all nations in the coming years as we together as one, build our industries and markets from scratch.
However, as citizens of this nation who are an important part of this economical reformation, must be aware of the Government policies which directly or indirectly affect us. Gone are the days when only the people of business were interested in the finances of the country.
Here’s our guide to The steps India has taken so far to contain economic fallout of Covid-19 and suggestions of common people like you and me:
General Covid-19 Relief Funds:
India has released Rs 27,281 crore to beneficiaries in cash and Social Security transfers within the first 10 days of April to assist the poor survive the world’s biggest lockdown against the Covid-19 pandemic.
The central government also released cooking gas cylinders and free grains under the relief package, according to a statement by the Finance Ministry. It had to release relief and transfers worth Rs 57,000 crore during the early months of 2020.
Finance Minister Nirmala Sitharaman on March 26 announced a Rs 1.7 lakh crore package to be released in the April-June period. Besides cash transfers, it includes free food and withdrawals from provident fund. Though some economists estimated the relief measures to cost the government just over Rs 1 lakh crore.
Food related Schemes:
About two-thirds of population will be covered under the Pradhan Mantri Garib Kalyan Anna Yojana (Food scheme)
Everyone under this scheme will get 5 kg of wheat and rice for free in addition to the current 5 kg allocation for the consecutive 3 Covid-19 affected months.
In addition, 1 kg of preferred pulse (based on regional preference) are going to be given for free of charge to every household under this Food scheme for subsequent three months.
Jobs and Wages:
For people earning but Rs 15,000 a month, government can pay 24% of their monthly wages that feed into pension and provident fund accounts. Wages under job guarantee program increased to supply annual advantage of Rs 2,000 to a worker.
Ease of attaining Monetary assistance:
Schemes announced this year aim to encourage banks to lend. Banks don’t need to set aside cash reserves for loans given to small businesses or for credit to help consumers buy a car or home. Cash Reserve Ratio reduced to 3% from 4%.
Healthcare related Funds:
FM Sitharaman has announced medical insurance of Rs. 5 million for healthcare workers. About 2 million health services and associated workers will benefit from this insurance scheme.
Loan Repayment ease:
All lenders can freeze repayments for three months on term loans outstanding. Lenders allowed to suspend interest payments on capital facilities for 3 months; accumulated interest are often paid later and therefore the loans won’t be in default.
The Rural Corporate Industries:
Special refinance to umbrella organizations — Rs 50,000 crore to go to Pan-India financiers like SIDBI, Nabard, NHB that affordably fund the rural sector and agriculture. Rs. 1 lakh crore of targeted future funds from the financial institution to banks for investing only in corporate bonds, aimed toward easing cash crunch at firms
Farmers and Agriculture:
State organisations will buy more seeds as well as pulses from farmers at government-set minimum purchase prices. India relaxed the lockdown for farmers and certain industries outside virus hotspots to resume operations from April 21. This helped them become somewhat financial stronger and also provide food to the entire nation.
Kisan Rail was let out exclusively for interstate agricultural products transportation for farmers. Mobile apps for farmers are being developed to keep them connected to technology.
Foreign Direct Investment:
India opened a good swath of its sovereign bond market to overseas investors, taking its biggest step yet to secure access to global indexes because the government embarks on a record borrowing plan
Capital Markets Relief:
Trading margin in stocks increased, market-wide position reduced to ease volatility in stocks. Rigid requirements relaxed for REITs and other related investments extends deadline for risk management rules for liquid mutual funds, timeline for filing debenture and preference share issues extended as well.
Raised the edge of defaults needed to trigger insolvency proceedings to 10 million rupees from 100,000 rupees.
Capital, debt market services exempt from lockdown Period. Eased rules to fast-track rights issues, and also 
And a few more schemes released from time to time that is associated with or along with the Rs 1.7 Lakh Crore Relief Package for Covid-19.
As India looks to prop up its economy, it’s worth reflecting on the opposite systemic actions that are needed to shift towards a more sustainable and resilient economy. Targeted fiscal, monetary, and financial market measures are going to be key to mitigate the economic impact of the virus.
Here are some suggestions as to revive the damage post covid-19:
In India, an optimistic prediction is that we will contain the spread of Covid-19 by the end of year.
However, this in itself could mean a 15-20% drop in corporate earnings over the next year. In addition thereto , the markets are already down 35 %.
Financial mechanisms for recovery and flexibility:
MSMEs need immediate financing to deal with their wage bills, the government can also infuse capital for them to undertake needed industrial energy efficiency upgrades.
Several sectors, just like the aviation and auto industries, will need support so as to recover. This will require consideration of the fiscal situation, and it presents a chance to encourage greater sustainability by making this support conditional on cleaner technologies and fuel efficiency.
Meanwhile, the govt can increase taxes on luxury sectors with high environmental impacts. It also can use this chance to rationalize fertilizer subsidy and increase taxes on fossil fuels, with the savings and proceeds returning to focus on populations through cash transfers or social safety nets.
Government needs to address the frail sentiment in the stock markets and put more efforts into the fixing of the foreign portfolio investors (FPI) taxation issue, reassure market participants that the government is not trying to bring down the capital markets.
Continuous Investment in infrastructure (sustainability):
Infrastructure investments are an efficient thanks to boost economic activity and make jobs. Although we have slowly started to resume the infrastructural activities, they are not enough if we want to boost our economy. Government has to push forward in this sector.
The economy needs reliable infrastructure to attach supply chains and efficiently move goods and services across borders. Infrastructure joins us across metropolitan regions to better opportunities for employment, healthcare and education. Clean energy and transportation system can reduce greenhouse gases and provide a sustainable infrastructure one with the nature and humans.
Economic infrastructure generally includes the facilities, activities and services which support operation and development of other sectors of the same economy. These facilities, activities and services help in increasing the general productivity of the economy.
Build an Economy for the most Susceptible:
A sudden pandemic has impacts that erode people’s right to life, health, food, and a decent standard of living. It poses the greatest threat to poor people and other groups on the margins of society.
For example, poor people are disproportionately vulnerable to climate-related natural and man-made disasters. The sectors in which they traditionally work—including farming and agriculture—are more susceptible to extreme weather events, and they are more likely to live in fragile housing.
But the economic fallout, joblessness, displacement, and other consequences of virus and pandemics are more than statistics. Behind every data point is a person with a story of unimaginable suffering and loss.
About 90% of India’s workforce is informally employed, which incorporates gig economy workers. This population is extremely susceptible to economic shocks and wishes greater access to formal credit and social safety nets like insurance and pension schemes.
Besides employment assurances, a provision basic income – wider and more acceptable than current schemes that are conditional upon occupation and land ownership – can help provide vital resources for subsistence, or for investing in education and health.
Lastly, it’s critically important to expand access to wash water, clean air and first health care. These will improve anticipation and increase economic and physical resilience.
Optimal Utilisation of Modern Technology:
Finally, it’s useful to think about that the longer term may even see greater employment within the gig economy-commerce sectors, also as in new technologies which will help support future response and resilience mechanisms. While supporting the event of such sectors, it’s important to place the proper regulations in situ to make sure data privacy and consumer protection.
The decisions taken today can provide immediate relief, but also secure an enduring economic recovery, increase community resilience and ensure a long-term pathway to sustainable development. We shouldn’t let this chance slip.
Creating more and more Employment opportunities:
Unemployment is universally recognized as undesirable. That is more evident than ever thanks to the Covid-19 pandemic, which left 50 lakhs and more jobless in the first few months.
While economists and academics make convincing arguments that there’s a particular natural level of unemployment that can’t be erased, elevated unemployment imposes significant costs on the individual, the society, and the country.
Policies to reduce unemployment like establishing a computerized national job bank that would provide job seekers and prospective employers with better information and implementing apprenticeship programs similar to those used in developed nations.
Other schemes like- providing government training programs to the structurally unemployed, paying subsidies to firms that provide training to displaced workers, helping the structurally unemployed to relocate to areas where jobs are open to be filled. There can also be some encouragements for employees to work and complete their education if any side by side.
India lives in its Villages:
Last but not the least, the migration of workers from the cities to towns and villages has increased the population in villages. People have resorted back to their roots. At such times, the Government can take opportunity to provide much more facilities in the local businesses and agricultural sectors.
The Indian government’s decision to remove most of the restrictions has provided much-needed relief to businesses, large and small. Despite this, the demand scenario is expected to remain weak for most of the current financial year. But it could make a comeback next year.
That pent-up demand could give a much-needed boost to faltering growth. At the same time, India should be wary. The depth of the slowdown in the current financial year means that a rebound is inevitable but there are factors that could hamper the recovery process.
India’s economic recovery won’t be easy but it can be achieved if we all fight back together by uplifting the weak along with us and build our nation again into the skies of development.