Assam economy suffers loss of Rs 32,167 crore due to COVID-19 lockdown

LOCKDOWN IMPACT

STAFF REPORTER

GUWAHATI: The Assam economy has incurred an estimated loss of around Rs 32,167 crore due to the COVID-19 lockdown in terms of potential contribution to the GSDP (Gross State Domestic Product).

The GSDP is the total value of goods and services produced in a year within the State, including net taxes on them.

Putting the total loss in the State due to lockdown at around Rs 32,167 crore, the Advisory Committee for Revitalization of the Economy of Assam said, "The sector-wise estimated break-up of the loss is: Rs 8,175 crore in agriculture, forestry, mining and quarries; Rs 7,546 crore in manufacturing and construction works; Rs 2,004 crore in real estate etc; Rs 1,711 crore in transportation and communication; and Rs 3,091 crore in other services."

The committee observed, "The disastrous impact of the economic hardship resulting from unemployment and poverty can be expected to manifest on social unrest of myriad forms and nature. This may result in petty crimes like thefts and robberies. This situation has potentials to become a bigger security issue rather than a simple law-and-order problem. There may be sudden spurt in the incidents of women and child trafficking, prostitution and child labour."

According to the committee, increase in unemployment will have a negative impact on income, both directly and indirectly. "Most importantly, increase in unemployment will distress the general wage level, especially in rural areas. As a result of this twin effect the aggregate demand within the State economy will tend to shrink further and recovery will become extremely challenging.

"The recovery of the economy after the initial loss depends on how actively the usual economic activities are restored and how quickly the situation gets normalize," the committee added.  

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