Economy

Tracking unemployment, export and Indian Economy during Unlock 1

The unemployment rate dropped to 7.26% in rural India and in the Urban unemployment rate has fallen to 11.2% in the last week.

Tracking unemployment, export and Indian Economy during Unlock-1
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After receiving complaints from domestic aluminium manufacturers, Directorate General of Trade Remedies (DGTR) started a probe into the alleged dumping of aluminium foil of 80 microns and below by China, Indonesia, Malaysia and Thailand.

India has also recently imposed anti-dumping duties on China, Vietnam and Korea for five years with a view to guard domestic manufacturers from cheap imports from these countries. The duty ranges from $13.07 to $173.1 per tonne. The imposition of a duty is the result of DGTR probe in the alleged selling of products below its normal value i.e. dumping by the above-mentioned countries

Leather manufacturers and traders have urged the government to impose anti-dumping duty on Chinese footwear to guard the domestic industry against cheap imports. They have also sought a hike in import duty on chemicals like basic chrome sulphate and sodium sulphide, which are imported from China and used for treating leather.

Leather Manufacturers and traders have also urged the government to impose anti-dumping duty on Chinese footwear and various chemicals like basic chrome sulphate and sodium sulphate, which are imported from China. They urged to increase the duty on these chemicals from 8.2% to 35%.

The imposition of anti-dumping duty is permissible under the World Trade Organization (WTO) agreements.

Chief Economic Advisor Krishnamurthy V Subramanium said that shutting doors to other cuntries will not help India. India had an import substitution model before 1991 and it has been abolished and discredited since then. He added that India is looking to compete with other countries and insulating from competition won’t help. He also added that trade should not continue with the countries creating border tensions.

Regarding micro, small and medium enterprises, Subramanian said the government has announced a package for the sector to take care of their liquidity problems. He further said that the real estate sector is very important for the economy as it creates lots of job opportunities for unskilled and semi-skilled workers.

The government reported that consumption of electricity, fuel and other commodities has increased after the unlocking started. BSE Sensex also reached the 35000 mark for the first time since March 11.

The Centre for Monitoring Indian Economy in their weekly report said that the unemployment in India has come back to the pre-lockdown level of 8.5% in the week ended on June 21. The May month saw 27.1% of unemployment due to the COVID-19 induced lockdown. The report also added that unemployment continues to be higher in urban India. Rural unemployment has come down significantly due to MGNREGA and Kharif Sowing.

The unemployment rate dropped to 7.26% in rural India and in the Urban unemployment rate has fallen to 11.2% in the last week.

SBI has estimated the Indian economy will shrink by 6.8% and it will not see the pre-COVID level till the financial year 2024. SBI has also estimated that COVID-19 induced lockdown will narrow down the inequality among the states in Per Capita Income(PCI). SBI has estimated that PCI for India will decline by 5.4%. PCI decline among the rich states like Maharashtra and Tamil Nadu will be higher around 10% to 12% and among relatively poorer states will be at 8%. SBI has also estimated that Delhi and Chandigarh will see a PCI decline of 15.4% and 13.9% respectively.

The SBI report also estimated that around 8 states and Union Territories, that account for 47% of total GDP to see a PCI decline in double digits.

France and India signed an agreement on Thursday in which France promised to provide an assistance of $200 million to support India’s fight against the COVID-19 pandemic.

Tea exports have dipped in the last fiscal to 240 million kg from 254.50 million kg the year before, a fall of 5.6% according to data.

Indian customs to check 100% of  Chinese goods thoroughly. This move has been prompted due to safety concerns not due to routine parameters.

Indian Government has done their part in containing the virus for a long time but this containment has cost the general public their normal life and employment and the nation its GDP.  With the unemployment rate higher in Urban areas which is more imminent in rural areas after the Kharif season. Will the government be able to provide enough opportunities to the nation with their “Atma Nirbhar” Bharat Abhiyan? 

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