JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 07, ISSUE 09, 2020

COVID-19 and the Economy of

Dr. Nupur Assistant Professor Department of Accountancy Nalbari Commerce College, Nalbari E-Mail ID: [email protected]

Abstract: In the present time, the entire world is under the great threat of COVID-19 virus. The COVID-19 pandemic severely impacted all the aspects of a living society. The sudden outbreak of this pandemic has createduncertainty, unpredictability regarding, the health structure of a society, social security, economic structure of a society. The economy of Assam is also totally divested by the attack of the COVID-19 or Corona virus. The key elements of the economic structure of Assam for instance intransportation industry, tourism industry, entertainment sector, real estate sector etc. have seen a harrowing time in the year 2020 and has made the economy of Assam deteriorate and falling. Key words: COVID-19, Economy, Assam, Breakdown, Disease, Pandemic

Introduction: Currently the entire world is virtually under the great threat of morbid death fear caused by a sudden outbreak of a deadly virus named as Noval Corona Virus or the COVID-19. Starting in December, 2019, about a year ago, in the Wuhan city of , the COVID-19 pandemic has taken countless human lives so far. Till today, there are about a 5.1 M of cases throughout the world and total deaths about 2.03 M. From Dec, 2019 to January 2021, the deadly corona diseases have been lasted for a year; but, till today the deadly diseases have not shown any sign to be gone or people are not able to come out of its fear. Thus, the situation is still very alarming globally. It is to be admitted here that this ongoing situation is very unfamiliar and unpredictable for all of us. It takes us to rethink about the ways of our living and as well as our balanced ecosystem. During this entire pandemic period, people have accepted the notion “prevention is better than cure” as the global slogan in order to survive throughout the world. The whole world is facing the huge 2020s crisis and Assam is no exception to this global crisis. Assam identified its first COVID-19 case on 31st March, 2020 and today, it counts for about 217 cases with nearly 2073 cases of casualties. In order to control the pandemic, the Govt. of , at first, declared a 21-day total lockdown and extended it to a few more weeks. In the month of relaxation period but with some bundle of relaxation as per the risk based categorization of the, districts of all the states of India. In keeping view of the financial structure and situation of the country, the govt. has to take such decision regarding relaxation. And, thus, there started the unlock series by the Govt. of India from time to time. These lockdown series have seemed to make a huge series impact on all the aspects of a society. The health of society, economy, social security, standard of living etc. all are being miserably affected. The COVID-19 pandemic has totally destroyed the economic structure of the entire world. Developed, under-developed, developing all the nations have come under its grave. Assam’s economy is too totally desalted by this sudden crisis. Social researchers have viewed that may be the fear of death due to COVID-19 virus one day end, but its aftermath consequences never be going to be an end from the society. It will change the entire structure of the society. At this backdrop, this paper examines the impact of COVID-19 on Assam’s economy.

Objectives: In writing this paper, the following objective are being kept in view-

 To study various aspects of Assam’s economy.  To bring light on the impact of COVID-19 on the economy of Assam.  To highlight some major areas of economy of Assam which have been adversely affected by novel corona pandemic.  To enquire into the factors responsible for the development of economy of Assam.  To suggest some measures to make up this economic crisis.

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JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 07, ISSUE 09, 2020

Limitations: The concept of ‘economy’ no doubt, covers a broad jurisdiction and various aspects. But it is not possible to study about all the aspects of an economy deeply. This paper basically brings light on a few and mainly four aspects of Assam’s economy which have a great significance on the economic development of Assam. The incompatibility of government and non-government reports also creates another problem in the process of data convection. This study is basically based on descriptive method.

Methodology: Description method is followed in order to make an analytical study. In this paper, data are collected from the secondary sources. Secondary data and information are collected from various journals, newspapers, local bodies, published research papers, articles and internet sources.

Impact: There is not any doubt in how the economy of entire world has been totally devasted by the sudden outbreak of the covid 19 crisis. However, not only the aspect of economy, but also all the spheres of a living society are being harshly affected with this deadly virus. The economic structure of Assam is not any exception with this. As per the report of Assam government, the economy of Assam, due to COVID-19, has suffered an estimated loss of around 32,167 crore interms of potential contribution to the Gross Stale Domestic Product (GSDP). The Advisory Committee for Revitalization of the Economy of Assam stated that due to COVID-19 lockdown, Assam has been struggling hard for its economic growth. It has to face a severe economic crisis. If we calculate the estimated loss of sector wise, then it would be like Rs. 8,175 cr. in Agriculture, Forestry, mining and quarries; Rs. 7,546 cr. in manufacturing and construction works; Rs. 2,004 cr. in real estate etc.; Rs. 1,711 cr. in transportation and communication and Rs. 3,091 cr. in other services. As the economy of a state consists of various sectors or aspects, in this paper I shall analyse a few sectors of the economy of Assam.

Entertainment Industry: In the entertainment sector of Assam, the mobile theatre groups have a prominent significance. Since 1970s, the iconic mobile theatre groups of have been working as a major source of entertainment; and thus, it is making a great contribution towards Assam’s economy. Along with the role as economic contributor, these theatre groups are always recognized as an important element of Assam’s rich cultural heritage. However, these groups are passing through a tough time financially and commercially first time ever in its glorious history of 60 years. These mobile theatre groups are always a main earning source for a large group of people to live engaging from the actors, singers, dancers, directors, musicians, producer, action artists, makeup artists, to the ordinary workers responsible for erecting tents etc.

Tourism industry: The tourism industry of Assam is another causality to the dreaded corona virus. Assam is purely blessed with natural richness and beauty. Being a part of North-East of India, Assam has its unique cultural and ethnic identity. Therefore, Assam is always having a vast potentiality for tourism. After initiating “Look East policy” the tourism industry of Assam has got much more recognition and, it becomes major source of revenue of Assam. There can be seen a noticeable inflow of both domestic and foreign tourists to Assam in order to discover its beauty. The tourism industry has thus become a major source of employment for many people as it creates agencies, hotel, restaurants etc. It is a major creator of income, tax collection and foreign exchange earnings of Assam. The following table presents the domestic and foreign tourist inflow to Assam- Year Domestic inflow Foreign inflow 2006 2768824 10374 2007 3436833 12899 2008 3617306 14426 2009 3850521 14942 (Source: Directorate of Tourism)

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JOURNAL OF CRITICAL REVIEWS

ISSN- 2394-5125 VOL 07, ISSUE 09, 2020

This table shows how the number of tourists inflow to Assam has been increasing year after year and that it has definitely helped in the growth of Assam’s economy. Even, ’s Lokapriya Gopinath Bardoloi International Airport has reported a growth of 31% growth in passenger movement in the last 2017-2018 which was higher than many Indian mainland cities like Lucknow, Kanpur etc. But, due to Covid 19, the state tourism industry has to face an estimated loss of around Rs. 500 cr. in the year of 2020. The Govt. of Assam reported a loss of revenue of around Rs. 500 cr. from the state’s tourism industry. Because of strict restriction on the mobility of people, the travel and tourism industry’s employment loss is predicted to be 5 lakh cr. throughout the country.

Tea Garden: The real estate industry is one of the oldest and mainstream industries of Assam. The unprecedented Covid 19 crisis seriously hits this industry too. Tea industry is highly labour intensive and is one of the largest employers in the organized sector of Assam. According to the reports of Tea Board of India, the production of tea in Assam in March 2019 was 4.6% of the state’s total annual production for that year. But in 2020 due to covid 19 crisis, industry has faced around Rs. 1,218 cr. estimated loss. The estimation is based on the Tea Board of India’s month-wise data on crop yield. BidyanandaBorkakoty, advisor of NETA (North Eastern Tea Association) wrote in a newspaper, “Tea plantation in Assam is seasonal in nature and the lockdown happened after an unproduction March 22 making the estates loss almost the entire March crop estimated to be about 30 M. Kg. Due to prolonged lockdown, about 35% leaves of our plantation will have to be skilled, leading to crop loss of 30 Million kg in April and 20 Million kg in May. The total crop loss, till May, thus be 50 Million kg.” As per the average auction price of tea from North India (including Assam) per kg for Rs. 152.26, the loss has ended up to at least Rs. 1,218 cr. NETA projected in a study. It should be noted here that much of the loss has been caused due to “Skiffing” or the removal of over group tea leaves that are out fit for harvesting. Non plucking of fresh leaves at regular intervals due to lockdown attributes to skiffing. North Eastern Tea Association (NETA), Assam Tea Planters’ Association (ATPA), BharatiyaCha Parishad (BCP) are the three mainAssam based indigenous Tea Producers’ Association of India. A huge number of regular wage-based worker are directly related with the harvesting and prod action of tea of Assam. As per govt. report, it is Rs. 1059 cr. of total revenue which was severely impacted by the COVID-19 pandemics.

Transport and Accommodation: According to the report of govt. of Assam, in the transportation sector the govt. has lost revenue of around Rs. 1,711 crores due to COVID-19 crisis. During the lockdown, all types of commercial vehicles are remained off the roads of Assam which has highly attributed to the revenue loss of Assam’s economy. The railways, the airways arenot fully opened till today. Due to the lack of availability of public transportation, the common people have to suffer more. Along with the common masses, the owners of the commercial vehicles (bus, taxi, auto-rickshaw, etc.) have also seen a harrowing time during the pandemic. They were not even in a position to pay EMI and taxes, besides make up their insurance cover. The restaurant owners, roadside food vendors are the other causalities to this deadly virus. Closing of all kinds of schools, college, offices, tourism sectors etc. minimizes the demands of hotels and restaurants to its highest level during the lockdown period. It should be noted here that as per the report of All Assam Motor Transport Association, an estimated 70,000 buses, auto rickshaws and magic taxis are giving direct or indirect employment to about 2.5 lakh who are new suffering fromuncertainty due to this pandemic era.

Conclusion: The Crisis of COVID-19 has severely impacted on all the aspects of economy. The sudden outbreak of this uncertainty has totally break down the backbone of economy of a small developing state like Assam. It will definitely take some time to stand up again and run on the path of development and this will become reality only with the help of govt. with proper initiative and measures. The government in consent of people has to take some proper measures to overcome this economic breakdown and recessionary phase. However, this pandemic has positively affectedon nature. Nature has found some time to make up its scars and provides a more sustainable world for its all living and non-living creatures. Due to lockdown, all the industries, construction works, vehicles, airplanes etc. are in halt resulting in decrease in pollution. The quality of air in major cities of the world has improved. Thus,COVID-19 disease has an almost unexpected impacton the environment, though it is short lived and temporary.

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JOURNAL OF CRITICAL REVIEWS

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References: 1. www.nenow .in (June 24, 2020, Gout anGanguly) 2. www.guwahatiplus.com (Sep 02, 2020 3. Economictimes.indiatimes.com 4. www.sentinelassan.com (June 3, 2020) 5. Wikipldia.org. 6. GogaiPurobi,2017, “Tourism Sector in Assam:Its Economic Contribution and Challenges”, Pratidhwani the Echo, Dept of Bengali, college, Karimganj, Assam, India 7. Inflibnet.ac.in 8. Economic time.com. 9. The hindu.com

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