Most of the countries of the world have given relief in the restrictions related to Kovid-19. Many countries are hoping that the epidemic is now in its last phase. However, in recent times, an increase in corona cases has been seen in countries like Japan, South Korea, America, France and especially China. Due to this, there has again been an atmosphere of concern in the world regarding Corona. The rise in cases has raised concerns that many countries may reimpose restrictions.
Why is the rising cases in China a concern for India?
The increase in corona cases in China is a matter of great concern for India. Because China has ended its zero covid policy. This has increased the risk of infection, especially for neighboring countries, it is a matter of concern. If the infection is not brought under control in China, there could be major disruptions in the supply chain. Due to this, the growth of many countries will also be affected and in view of this, recession can also come in many places. The global economy is already passing through a phase of slowdown.
Looking at these things, the central government in India can also make some announcements in the upcoming budget. In Budget 2023, the government can announce Production Linked Incentive i.e. PLI scheme for new areas. Apart from this, new announcements can be made to promote one district one product scheme. Its purpose will be to make export hub in India and create new jobs from it.
Government will increase the allocation in the budget for health
The Modi government can also remove the obstacles related to land acquisition in the budget. Apart from this, the government can also announce improvements in basic infrastructure and judicial reforms. The government has also set a target of spending 2.5 per cent of GDP on health by the year 2025. In view of this, the Modi government can increase the allocation for expenditure in the health sector in this budget.
In case of a health crisis in India, the health infrastructure and management is now better prepared than before. At the same time, the pressure on the domestic supply chain has also reduced. India has forged collaborations with 17 countries in view of disruptions in transportation, logistics and supply chain in the near term as well as difficulties in the long term. Given the growing uncertainty and threats to growth, it will be important to maintain stability at the macroeconomic level. Along with this, attention will have to be paid to the management of the supply chain, so that inflation can be controlled.