Macro and Micro Economic Development in the Post-Pandemic Era

About:
The paper examines “Micro and Macro Economic development in the Post Pandemic
era” studying the trends in management of Indian Economy; dealing with recession,
forecasting and changes in Economic policy.

Objectives:
 Comparison of the condition of Macro & Micro economy of India Post-Pandemic Era.
 Effects on Formal & Informal sectors.
 The conditions on various classes of people in terms of business, jobs and daily life in
post-pandemic era which has affected the economy as a whole both directly and
indirectly.

Scopes:

● Vaccination strategy by government.

● Measures undertaken by the government to develop Healthcare infrastructure.
● The Big impact of Corporate (IT) industry and the New Normal.
● Economic hit taken by the middle class and poor.
● Jobs lost during the lockdown period.
● Rural economic scenario before and after the pandemic.
● Industrial output scenario and Public consumption during and after the pandemic era.
● Effect of Government Schemes on the people.
● Infrastructure development before and after pandemic by government and the private
sector.
● The Gig Economy.
● International Trade scenario before and after the pandemic.

Working Methodology:

● Detailed description will be provided about the scopes with sufficient data points.
● MS office and Statistical software will be used for analysing data and writing content.
● Each team member will be assigned with a particular number of scopes.
● Third party data will be used for data representation.

Conclusion:
The main agenda behind this project will be to showcase how lives and economy were
affected by the Covid-19 virus and how the new normal will be. This project will also show
the way forward towards prosperity

TEAM G3:
Anirban Chakraborty(04)
Barish Mitra(12)
Sagnik Mukherjee(51)
Sirshajit Sanfui(63)

Introduction

The paper examines “Micro and Macro Economic development in the Post Pandemic
era” studying the trends in management of Indian Economy; dealing with recession,
forecasting and changes in Economic policy. Almost all sectors and subsectors of the
Economy were significantly affected by the Pandemic and the subsequent lockdown imposed
in order to counter it. Economic activities were stopped or otherwise slogged due to
movement restrictions, restrictions on gathering and other reasons. With most of the market
being closed, the economy took a severe dent. This caused changes in the demand and supply
in the goods and money market, and also affected greatly the Economies of scale. All past
notions about the management of the Economy were affected and thus most of them were
revised to improvise with the changing tide. The Government with Finance Ministry had to
devise changes in the Economic policy to counter the recession in the market, with
simultaneous increase in the price of goods and services. The Forecasting was off the charts,
as there wasn’t a first clue as to how one would properly react, let alone recover from the
shock that the pandemic was. People from all over the country were affected either directly or
indirectly by the aforementioned changes especially at a macro level. Their expenditures
changed, as did their buying habits and patterns.

Impact on Agricultural sector

Agriculture Sector: Sources from Statista say that it is the major employing sector in the
Indian Economy employing over 42% of the population. The pandemic has harshly affected
the supply chain logistics of raw material supply, harvesting, distribution, procurement,
labour supply, marketing and transport hurdles.

Agricultural Production- Agriculture Sector wasn’t substantially affected, with a decline of

-2.7%. Allied industries comperatively had more setbacks in the range of 8-20% by sector
owing to decline in demand. Dairy and Horticulture sub-sectors also saw a decline in
production for the same reason.
The impact of COVID-19 pandemic on the overall production levels in the agricultural and
allied sector has been significant with a decline of 47% over the country.

Reasons for decline in agricultural and allied sector can be attributed to lack of availability of
labour and machines, restrictions on free movement of labour and machineries.

In the agriculture sector, most states have reported a decline in production like Himachal
Pradesh (14%), Chhattisgarh (12%) . However, some large agricultural states have actually
shown a growth in agricultural production like Gujarat (6.7%), Telangana (23 % increase),
Punjab (5%), Rajasthan (4.4%).

Farm Gate Prices(Basic prices of farm goods at the farm)

Owing to the lockdown from the pandemic, there has been a grave impact on the basic prices
prices of commodities in agriculture and the allied sector. With the major sectors of the
economy shut down, the demand for these commodities shrivelled due to shutting down of
rural markets/bazaars, lack of transportation, causing severe decline in prices. 23% districts
witnessed an increase in prices owing to the supply chain disruptions and 54% of the districts
reported a decline in overall prices of commodities in agriculture and allied sector. The prices
remained same in rest of the districts

Availability of Agricultural Inputs

The overall availability of agricultural inputs reported a decline in 58% of the districts and
38% of the total districts reported no change in the availability of agro-inputs, however only
4% of the districts stated increase in the availability of Agro-inputs
The average availability of agro-inputs at the national level reported a decline across all
subsectors. The sharpest decline was in the availability of fertilizers (11.1%) closely followed
by decrease in fodder/cattle feed (10.7%) and agricultural machinery (9.9%), followed by
availability of pesticides (9.7%) and seeds (8.9%). The cause for decline in availability can be
attributed to unavailability of transport, restriction on movement and the markets being
closed.

Supply, Demand and Wages of Agricultural-labour

The supply, demand and wages of labour was severely affected by the movement restrictions
and lockdown imposed due to the pandemic at all-India level. The country during this period
witnessed significant number of migrant labourers trying to return back to their homes.
Supply of labour was severely affected by this. Agricultural labour supply had shown a
decline in 69% of the districts. The labour supply remained the same in 19% of the districts.
an increase in labour supply in 13% of the districts owing to the return of migrant labour to
their native places.
Demand for labour at an all India level increased in 42% of the districts and decreased in
24% of the districts. In 34% of the districts, the demand remained the same.
It was reported that wage rate had increased in 42% of the districts, decreased in 11% of the
districts and remained same in 47% of the districts.

Impact on Mining industry

India's mining industry is a labour and capital intensive industry that accounts for 2 to 4% of
GDP. India has around 3,938 operating mines containing various types of minerals, from coal
to smaller minerals. The mining industry is also badly affected by the massive workforce.
The industry employs 23 lac people. Around 20.3 million people work indirectly in mining.
Almost 1.3% of the population live in nearby mining areas in India.
The pandemic has short- and long-term effects on the workforce and industry. Short-term
effects include cessation of mineral production, lost wages due to pandemic outages and
restrictions, unemployment, and the sale of minerals in the market. In the long term, the
continuity of the numerous mining companies, the name and economic health of the
industries, the exploration of new mineral deposits and the advanced development of new
mines are affected. Aside from the specific impact of COVID19 on the mining industry, the
social fabric of workers in mining has been compromised as they live in an environment of
fear, insecurity and health concerns.
As a direct consequence of this moderate production from the mines, the decline in mining
revenues for governments, the reduction in construction activity is likely to result in a
massive decline in the steel industry given the situation on the end-use side and impact
cement consumption in FY 2021 the mineral and limestone sector. Likewise, the delay in
production activities in the industrial sector is likely to have an impact on energy generation
without the use of coal and thus on the production, license fees and taxes of thermal coal. Of
course, the demand for many different minerals can also be influenced.
Coal India saw production decrease of 38.1% and NMDC recorded a 41.6crease in fiscal
2020-2021.
According to estimates, the top Five mineral producing countries appear to be receiving a
total impression of around INR 3,003,500 crores due to the decline in mineral production.
The COVID19 outbreak, as well as the future lockdown announcement across the country,
have disappointed the playing field with the seamless continuity of operations in these
auctioned mines. their operations while the rest of the bourgeois miners cut their production
or cut their costs
The entire mining sector has seen a depreciation in value, the treasuries are expected to push
them to be hard hit, especially after raising higher revenues to finance them family health and
wellbeing and the creation of new infrastructures, government agreements to auction new
coal and mineral blocks are likely to lead to delays, MDO / MOs are likely to face significant
challenges, and not at least COVID19 has already influenced the entire system of the
company, in particular major stakeholders.

Impact on Construction Sector

The face of the Indian production industry, which changed into already suffering with terrible
control and a loss of monitoring of its labour force, misplaced its critical rein absolutely as
COVID-19 unfold throughout the sector in April 2020
The Pandemic disrupted the price chain gadget in numerous factors and scales. Construction
material availability and cost inflation have become farther more important issues. The loss
of well-timed execution because of lockdowns contributed to value overruns, giant delays or
even the cancellation of tasks. The cancellation and stalling of tasks without delay impacted
the MSMEs (micro, small and medium enterprises), a lot of which had been compelled to
shut-down, save costs or cut down on operations. This have become mainly stressful for the
reason that production quarter frequently accommodates small-scale specialty production
corporations and layout studios. In the midst of the pandemic fuelled chaos of this already
hard to view and hard-to-manage industry, client sentiments fell, and the sector's demand-
intensive nature introduced additional stress.

The Reason for this is described with the following points below:

Supply chain management

The supply chain has been disrupted in various ways in different parts of the world.
Various construction materials are necessary but for the pandemic these do not reach the site
from the outside which hinders the construction work. The various materials that come from
different factories in the country or abroad through different vehicles for construction work,
these things could not come. Not all vehicles can come to the sites thus due to the lack of the
required materials, so work is stopped. Not only has this shut down the construction industry,
but it has also damaged the livelihoods of those who transport these items in vehicles, and the
factories that produce all of these materials are also losing a lot of money because they don't.
are not sold.
Transportation problem
All transportations in the country have been disrupted due to lockdown in all parts of the
country. That’s why no materials are arriving in the construction sector and no workers are
able to come to work from their home. That’s why the work has stopped.

Labor shortage
First, workers cannot get to their workplace because the transportation system is completely
closed. Second, the disease is caused by viral infection, so workers are more likely to spread
the disease when they come into contact with each other. Therefore, many workers do not
want to come to work. In addition, it is not possible to make workers work without any
protection.

Financial problem
The companies do not make any profit due to the interruption of work in the companies and
on the contrary they suffer more losses and not only the company loses money but also all the
suppliers who provide the necessary materials for several companies to use in the
construction industry, all of these suppliers also suffer huge losses.Since the company closed,
the supply chain has been shut down and factories that produce goods have stopped
production, causing many losses. In addition, due to the non-sale of factory-made products
and the closure of the construction sector, the government is not able to collect the
appropriate taxes from all of these places, which has a direct impact on the country's GDP
and when the country's GDP falls, affects the world economy.

Unemployment
Companies are suffering enormous economic losses as a result of this lockdown. This is why
companies are unable to pay their employees adequately and the company is laying off many
workers. Because of this, many jobs were ripped off. Their families are also going through
many hardships due to the loss of their jobs.In short, a worrying situation arose.