 COVID-19 and The Indian Economy: The Debate About a Wage-Led RecoveryChapter Chapter 3 in Economists and COVID-19, 2022, pp 27-46 from Springer Abstract: Abstract The COVID-19 pandemic has triggered multiple crises—of health, economy, and livelihoods—in India. The restoration of at least a part of the incomes lost by the overwhelmingly informal workforce in the country during the lockdown period should have been a priority for the government. However, the stimulus packages announced by the government have been inadequate, especially given the magnitude of the employment and livelihood crisis. Some of the policies taken in the wake of the crisis, such as the approval to increase daily working hours to twelve, have led to a weakening of labour’s position vis-à-vis capital. Rather than boosting economic growth, such measures will only worsen the deficiency in aggregate demand and prolong the recession. India’s policy-makers should reconsider the faith they have put in neoclassical economic ideas, which have slowed down employment growth and left millions of people with little access to basic health or education facilities. The pandemic should be an opportunity to build in India an effective and publicly provided social security system as well as rural infrastructure and research institutions. Keywords: India; Political economy; Covid; Wage-led growth; Profit rate (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-031-05811-0_3 Ordering information: This item can be ordered from DOI: 10.1007/978-3-031-05811-0_3 Access Statistics for this chapter More chapters in Springer Books from Springer |
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