Impact of COVID-19 on Rural Economy in India

Bhanu Pratap Singh

MPRA Paper from University Library of Munich, Germany

Abstract: ‘They will go to die there, where there is life ’. COVID-19 lockdown flooded streets with migrant labourers which were marching to their villages to find warmth and empathy. Many reached their homes but several failed and died on streets and railway tracks. The current study offers insights on the plight of migrant labourers and impact of COVID-19 on rural economy in India. The major finding of the study suggests 400 million workers in India in the informal economy are at the risk of falling deeper into poverty during the crisis. The low reporting of COVID-19 cases due to low testing will result in community spread. The reverse migration will create excess pressure on the agriculture and rural economy which will result in a significant number of people to fall into abject poverty. COVID-19 will have both short and long-run effect on the rural economy in India. The government economic package contains majorly long-term measures whereas short-term measures such as cash incentive and wage subsidy should be given to save migrant labourer and marginal farmers. Above all, mass corruption in the system is the biggest challenge in the effective implementation of plans.

Keywords: COVID-19; Migrant Labourers; Agriculture; Rural Economy (search for similar items in EconPapers)
JEL-codes: J61 J78 O15 O53 P25 P46 R23 (search for similar items in EconPapers)
Date: 2020-05-20
New Economics Papers: this item is included in nep-agr and nep-iue
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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