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Economy

1
Economy

Contracting wages, returning migrants: rural wage workers have no income to help revive the economy

There was no real increase in rural wages in both farm and non-farm jobs up until the pandemic. Now, an influx of migrant city labour will put more pressure on better-paying non-farm jobs that account for rural productivity. Meanwhile, the farm sector is hurting under a badly distributed monsoon and consequent floods across major agricultural swathes of the country.

Economy

Contracting wages, returning migrants: rural wage workers have no income to help revive the economy

There was no real increase in rural wages in both farm and non-farm jobs up until the pandemic. Now, an influx of migrant city labour will put more pressure on better-paying non-farm jobs that account for rural productivity. Meanwhile, the farm sector is hurting under a badly distributed monsoon and consequent floods across major agricultural swathes of the country.

Economy

Don’t cut direct stimulus fearing a debt overload. It can severely dent India’s economic recovery.

Contrary to the perception that higher stimulus will lead to an unsustainable debt burden, the reality might be just the opposite. By triggering growth, a debt-funded stimulus enables higher revenues for the government, reducing the size of borrowing programmes. The ideal strategy for the Modi government would be a direct and targeted stimulus funded by lower-yielding debt.

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