Post-pandemic Penury of the Financially Marginalized in India: Coping with the New Normal

The poor in India are worst affected due to COVID-19 pandemic. The nationwide lockdown though an effective safety measure, has made their condition more pathetic. As per, World Bank 2020 estimates, there are around 50.7 million people in India living in extreme poverty with income of $1.90 per day. The Government of India has announced several remedial measures to tackle economic as well humanitarian crisis but its effective implementation is a major challenge due to enormity of the problem and the large number of affected people. Moreover, the measures announced are based on top-down approach and not on detailed assessment of impact on different sections of the population. The different segments of the poor have suffered from the impact of the pandemic and subsequent lockdown, in different proportions. They have suffered from severe financial losses. In this chapter, we have made detailed assessment of impact of the pandemic on individuals, different sectors of economy and on Micro, Small and Medium Enterprises (MSMEs). The measures announced by the Prime Minister are discussed along with their implications for the poor and MSMEs. At the lowest end of the spectrum, are the migrant labors who are worst affected. They are required to travel for their homes due to loss of livelihoods and require immediate relief. At the other end, are the skilled labors working in organized or unorganized sectors, who have not lost their jobs but are facing reduction in wages. In order to make the systematic assessment of the requirements, we have grouped the people in three categories namely high impact, medium impact and low impact and have assessed the requirements for each category. So also, it is deliberated as to what extent, the government measures address their requirements. The gaps are identified and detailed suggestions are made. Major structural changes such as extensive use of information and communication technology, development of on-line platforms for education, strengthening of rural infrastructure, development of health infrastructure, creation of employment opportunities in rural as well as in urban areas and provision of credit and capital have been suggested. Furthermore, suggestions have been made to improve credit flow to MSMEs and for launching temporary social security system for the poor.