While the Novel coronavirus has caused a lot to the economy , the revival and growth of the Indian economy is the need of the hour. The government is trying it’s ways to revive the economy and get it back to the position it was in or even better than that. The Urban sector has been affected drastically and would take much longer to get back to normal. The Rural India on the other hand has been progressing positively in the recent times and also benefiting by the pandemic. This therefore, contributes to the Indian economy and will help it to move ahead.
While liquidity is today one of the biggest obstacles for the revival of business, we may find that even if credit is available, the problems of labour, high cost, social distancing and unstable demand discourages the business firms to restart their work . But, In Rural India the spread of the virus is least and also the lockdown risk is minimal ,so it is naturally easier to have physical distancing and outdoor work. The Rural India is in its raw form and can be manufactured to become the best possible product. The Urban India is already an existing product that needs improvement and upgradation.
In the lockdown period the demand for dairy products and vegetables was still the same. Even if the restaraunts did not make a demand for vegetables then too the supply of vegetables for the ordinary people continued and it was the most bought thing in the lockdown . Agriculture continued even in the lockdown period. So, while most of the other industries—automotive, textiles, real estate—have shut down, the farm industry has not, despite low support from a policy context. A farmer never will have to face a shortage of demand since the importance of food and food products will never end. Even if people don’t buy clothes they will buy vegetables. The negligence would cost much but if some important steps are taken Rural Economy would prove to be the best ever decision one could take .
MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (NREGA) – This scheme should be expanded and liberalised. The farmers must get a security in their jobs and not be completely wage labourers.
Finance farmers directly – It is absolutely critical that the government delivers finance directly to the farmers through the primary agricultural co-operative societies, commercial banks, a special line of credit, and Kisan credit cards. This would accelerate the credit and increase investments through savings from income.
Exports- The Indian Economy has been confined to exports in only secondary and tertiary sector. But, primary sector has been laid back. Although India has gained alot in it’s food supply chain and it must encourage the export of food products thus leading an encouragement in the agricultural sector.
The policy implementation has to be in its best position – Only talking about the policies will be of no help, what is important is it’s implementation that holistically improves the Rural sector . It is important to create credit and gain from it for the benefit of the economy as a whole.
While agriculture is certainly the primary engine of the rural economy, we also need to look at non-farm sectors like handlooms, handicrafts, and rural SMEs to unlock the full potential of employment and income generation.
Therefore, there is a great need for Research and Development. For something to reach heights it is important to strengthen its roots. And India was always an agrarian economy and if you strengthen its roots its branches will be spread widely.