The covid-19 pandemic makes a tremendous impact on every individual’s life all over the world. It’s been more than a year now and the world is still suffering from this covid. The poverty rate in India was already high before this pandemic occurs.
According to the report analysis given by Pew Research Centre, “The number of poor people in India is increased by 7.5 crores because of this pandemic”. These people have an income of Rs 150 or below. The report also stated that there is a record spike in MGNREGA participants, as they are also facing many issues and struggles while finding jobs.
The pandemic lockdown resulted in the shutting down of a business, many people lost their jobs. The economy falls down in negative. Now, not only people living below the poverty line are struggling, the middle class is also facing many issues. The middle-class person’s income has also decreased from almost 10 crores to just 6.6 crores.
COVID-19 has worsened the inequality
According to Pew, the situation can become even worse than it is now. The methodology assumes that the incomes change at the same rate for every person out there, no matter which class or group he belongs to. They said that the covid had worsened the inequality. There will be an increase in the people who belong to the poor category, whereas their incomes are likely to get deceased. The people with high income are very less after this estimation. Lastly, the middle class will face more struggles which can’t be expected.
In India, we’ve already faced a serious GDP contraction last year. Covid gives the worst downfall to the country’s economic growth, which results in increasing the poverty of the country. Cases are increasing again, and in some areas, the government has ordered a partial lockdown. For every country controlling pandemic and economy is such a hard task.