Page 30 - NIS English December16-31
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Cover Story
Interview
What is the significance of $5 Trillion Government’s perspective behind such a bold
economy that the Prime Minister decision?
is aiming for? How can one Digitisation of economy enables it to become
contribute to it? more firm and activates formal sector. With JAM
(Jan Dhan, Aadhar and Mobile), a trinity is created.
I think lots of reforms introduced are I think the COVID-19 crisis also demonstrated
intended to achieve that growth. For citizens, that lots of activities are making a significant push
it is essential to follow simple rules especially towards digitisation.
with respect to COVID-19. Make sure to BHIM App is completing four years and the
wear mask, maintain social distancing and period has remarkably shown a major shift
wash the hands frequently. The economic towards digital transactions, especially in times
impact is quite related to pandemic itself. of Corona. What is the roadmap ahead ?
In India, money got transferred to bank accounts
phases of unlock. The GDP of UK went down to of needy people under various schemes of the
20 per cent while India’s GDP went down to 23.9 Government just by one click. People are doing
per cent despite more stringent lockdown in India. digital transactions by sitting at home following
Now, things are looking up in the unlock phase as social distancing. It helped a lot during pandemic.
manufacturing sector is showing a greater recovery.
We can see a V shape recovery. Economy is a complex term for a commoner.
How is the size and behaviour of the economy
Industry and other sectors appreciated different from other countries? How can a
economic reforms and resolve of Prime Minister common man for whom technical jargons of
Narendra Modi to put the country on growth economy are not relevant, can understand its
path. What are the reasons for this? benefit in easy words?
The economic crisis in the aftermath of As we explained in this year’s Economic
COVID-19 pandemic is quite different from Survey that talks about Thalinomics. Inflation can
earlier crisis. It created a negative growth rate for be understood with the rate of increase in prices
demand, which potentially impacted the long-term of a plate of meal. Similarly, when we talk about
economic growth. To ensure that it didn’t happen, employment, it talks about the number of people
the Government undertook a series of reforms. getting jobs. Similarly, GDP growth is calculated in
The labour reform, agriculture reform, definitional terms of activities of people and income generated
changes of MSME and the PLI scheme, all these from them. The analysis is based on the basis of
are very seminal because they are doing two things percentage increase or decrease. These are two-
primarily. First, they are enabling the economy to three crucial data that is important for analysing
become much more formalised. For instance, if we micro economics.
compare job data of 2011-12 with data of 2017-18,
it shows a five per cent reduction in the proportion How is Prime Minister's AatmaNirbhar
of casual workers with five per cent increase in the Bharat campaign proving to be helpful for the
proportion of salaried workers which is an indication economy?
of formalisation of economy. Second part was also There are some important aspects. First, we have
to concentrate on making growth in job sector become self-reliant in various sectors. We have
more intensive because if you look at sectors like become the second largest producer in the world
agriculture, manufacturing, they account for large in PPE kits production. It is important to understand
proportion of employment in the economy. that self-reliance comes with competence. No
Post demonetisation, the economy is moving person, company or the country can become self-
fast towards digital and cashless medium laying reliant if, they are not competent. Secondly, if you
foundation of a strong New India. What was the see the kind of product and services provided by
28 New India Samachar
