Completion will result in loss of 12 lakh crores, 12 lakh crore will be lost due to lockout in the country, of which Gujarat has huge loss of Rs. 97,598 crore in 40 days. Gujarat is losing Rs 2500 crore daily.
The 40-day full-time implementation in the country to prevent the spread of Corona virus infection is going to have a very bad effect on the economy of the country and the states. According to a study by the Indian Institute of Technology (IIT) Bombay, the country has been estimated to have incurred a loss of Rs 11,87,156 lakh crore during captivity. This loss is equal to 8.43 percent of the country’s gross domestic product (GDP).
Prof. G. Haripriya of IIT Bombay Department of Humanities and Social Sciences and Prof. of SJM School of Management. Vinish Kathuria has done this study. Professor Haripriya said that we have studied first district wise and then state wise. The study has been done on the basis of various employment reports released by governments, data on population, national statistics account and national sample survey.
Professor Haripriya said that during this period, Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) and employees working in unorganized sectors will suffer loss of income of more than Rs 1.16 lakh crore. Utilization expenditure will also be reduced in this proportion. He informed that there will be a loss of more than Rs 2.22 lakh crore in consumption expenditure which is 1.57 percent of the country’s GDP. He said that the study estimated that the country would incur a loss of Rs 11,87,156 lakh crore during the ban.
Professor Haripriya said that while estimating the loss of consumption expenditure, it has been taken into consideration that the areas of entertainment, tourism, hotels, restaurants, beauty parlors etc. can be seen to have an immediate impact on the detainees. There is no immediate major impact of the closure on the manufacturing sector. At the same time, there has been no impact on public authorities and services such as electricity, water etc. Professor Haripriya said that in this study, we have seen the immediate impact on different areas. The study has not yet estimated the post-demonetisation effects such as insolvency of companies and increase in unemployment.
There will be more losses in these states
Uttar Pradesh: 95,380
Tamil Nadu: 94,446
(Note: figures in crore rupees)
Unemployment in unorganized sector will increase in Uttar Pradesh, Madhya Pradesh, Karnataka, Bihar, Maharashtra
‘During this time, employees working in the MNREGA and unorganized sectors will suffer a loss of income of over Rs 1.16 lakh crore. Utilization expenditure will also be reduced in this proportion. ‘