16 AUG,2020 | MEDC
Banking on a rural revival is unwise as structural problems continue to plague the countryside. Of course, this in no way suggests that it cannot happen. With strong urban-rural linkages, India will also have to pick up for Bharat to revive on a sustainable basis. The public health crisis is more acute in urban than in rural areas, but with millions of migrant workers having gone home, a rising spread of infection in the hinterland cannot be ruled out. This complicates the prospects for economic growth therein. A GDP contraction this year is now inevitable … the only issue is how to minimize it. In this context, maybe a new ease of doing business index needs to be developed – one for urban areas and one for rural areas, and closely monitored. The government is reopening manufacturing and the services sector in a calibrated manner, and that should provide the right kind of fodder for overall economic revival.
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