Pandemic of poverty: India's financial crisis worsens

Mafazah Sharafuddin
May 31, 2021

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As the country suffers the threat of death and disease, financial struggle looms over it. There has been a huge loss for several of the economy. The government has issued aid, however, it is insufficient and neglects the unorganized sector entirely. 

The estimation of the government, standing at Rs 1,250 crore, and is not close to what is needed by the people. Additionally, it does not aid those who don’t come under government schemes, meaning a huge chunk of the unorganized and industrial sector. 

The financial crisis in India due to COVID is a many headed demon. So many different issues have arisen since the start of the pandemic, and the people of India are suffering under the financial burden. 

Sudden shifts

Since the beginning of the pandemic, the word ‘unprecedented’ has been used innumerable times. Problems arrive suddenly, with no warning. People are losing their jobs all at once after years of working in the same place. 

With the magnitude of the death toll, many a times the sole breadwinner of the house passes away. This leaves the family floundering, looking for jobs and trying to keep mouths fed.

People who are newly unemployed and unable to find jobs in the same industry are left confused. They have a skillset that employers are not looking for and eventually, they have to resort to unskilled labor which gives them lower wages. 

Warning signs 

The fact is that the people are suffering. The numbers back it up. There has been a 15 to 20% increase in poverty since the pandemic began. This means more than 23 crore people have slipped below the poverty line. 

Unemployment has increased, too. 1.5 people have been lost their jobs, and those who continue to be employed face lowered salaries. The per capita income of the country has lowered by 16.8% to what it was in January of 2020. 

Within 2020, there was an increase in people partially withdrawing funds from their Employee Provident Fund accounts. While it was 54 lakh people in 2019, 2020 saw 1.27 crore people doing the same. 

According to RBI, there had been an 81.5% increase in that loans against gold jewelry by Scheduled Commercial Banks in March in comparison with the same last year. 

MFIs, MSMEs suffer losses

MFIs (Micro finance Institutions) cater to the poorer sections of Indian society. The lockdowns have has adverse effects on the functioning of NBFCs and MFIs. With the poor already suffering through unemployment and steep hospital bills, this too has caused a bad hit.

Some sectors are faring worse than others. These industries thrive on travel, face to face interactions and consumerism. Retail, MSME, and hospitality are some of them.

The pandemic has resulted in the closure of 15-20% of the MSMEs in India. Large scale supply chains are taking away their customers as they are not able to operate as usual during the pandemic. If the situation continues, there could be a much larger percentage of MSMEs closed during the pandemic. 

Small businesses run into trouble

Small businesses like family run stores are facing trouble getting customers and keeping their shops open. The lockdown hours put a huge dent in the time they can sell to people. Shops that don’t count as ‘essentials’ often cannot open at all. 

Chain supermarkets and other shops are seeing more traffic as these small businesses get neglected. Without their livelihood, the threat of COVID increases as they would not be able to afford the hospital bills and medication.

Sellers over the internet find it difficult to post packages as delivery services do not function everywhere due to COVID. Small businesses are losing customers at a large scale. 

Social workers rise to the occasion

While the situation is dire, social worker and organizations have taken the initiative to help people. All over India, social workers and volunteers are assisting on everything from grocery packages to cremations. 

The workers help with transportation, reservation of beds, intricacies of the Ayushman card, ensuring the patients and the family members staying with them are fed, etc. With the ongoing crisis with the bodies piling up with no one to deal with them, social workers are also burying and cremating bodies. 

Not just this, but they are also helping people who are not infected, but have been affected by the pandemic. Distributing food, rations etc. to those in need is another task they perform. 

However, without proper government aid to the poorer sections of society, there is no saying how bad the situation could get.

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News Network
November 21,2025

Bengaluru, Nov 21: The Karnataka government is facing pressure to overhaul its employment system after a high-level Cabinet sub-committee recommended the complete phase-out of job outsourcing in government offices, boards, and corporations by March 2028. The move is aimed at tackling a systemic issue that has led to the potential violation of constitutional reservation policies and the exploitation of workers.

The Call for Systemic Change

With over three lakh vacant posts currently being filled through private agencies on an outsource, insource, or daily wage basis, the sub-committee highlighted a significant lapse. "As a result, reservations are not being followed as per the Constitution and state laws. It’s an urgent need to take serious steps to change the system. It has been recommended to completely stop the system of outsourcing by March 2028," the panel stated in a document.

The practice of outsourcing involves private companies hiring workers to perform duties for a government agency. Critics argue this model results in lesser salaries, a lack of social security benefits (otherwise available to permanent government employees), and a failure to adhere to the provisions of Articles 14 and 15 of the Constitution, which guarantee equality before the law and prohibit discrimination.

The 'Bidar Model' as a Stop-Gap Solution

To regulate the current mode of employment and reduce worker exploitation until the 2028 deadline, the government plans to establish workers’ services multi-purpose cooperative societies across all districts, following the successful "Bidar Model."

The Bidar District Services of Labour Multi-purpose Cooperative Society Ltd., which operates under the District Commissioner, is cited as a successful example of providing a measure of social security to outsourced staff. Labour Department officials argue this society ensures workers receive their due wages and statutory facilities like ESI (Employees' State Insurance) and PF (Provident Fund), in exchange for a 1% service fee collected from the employees.

legislative push and Priority Insourcing

The recommendations, led by the sub-committee headed by Law and Parliamentary Affairs Minister H K Patil, are set to be discussed at the next Cabinet meeting. The committee has proposed the introduction of the Karnataka Outsourced Employees (Regulation, Placement and Welfare) Bill 2025.

In a move addressing immediate concerns, Labour Minister Santosh Lad, a member of the sub-committee, has reportedly assured that steps will be taken over the next 2-3 years to insource workers in "life-threatening services" on a priority basis. This includes essential personnel like pourakarmikas (sanitation workers), drivers, electrical staff in the Energy Department, and Health Department staff handling contagious diseases. The transition aims to grant these workers the long-term security and benefits they currently lack under the outsourcing system. 

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News Network
December 3,2025

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IndiGo, India’s largest airline, is battling one of its worst operational disruptions in recent years, with hundreds of delays and cancellations throwing domestic travel into chaos.

Government data on Tuesday showed its on-time performance plunging to 35%, an unusual dip for a carrier long associated with punctuality.

By Wednesday afternoon, airports in Delhi, Mumbai, Bengaluru and Hyderabad had collectively reported close to 200 cancellations, stranding travellers across the country.

Crew Shortage After New Duty Norms

A major trigger behind the meltdown is a severe crew shortage, especially among pilots, following the rollout of revised Flight Duty Time Limitation (FDTL) norms last month.

The rules mandate longer rest hours and more humane rosters — a shift IndiGo has struggled to incorporate across its vast network.

Sources said several flights were grounded due to lack of cabin crew, while some delays stretched upwards of eight hours.

With IndiGo controlling over 60% of India’s domestic aviation market, the ripple effect has impacted airports nationwide.

IndiGo Issues Apology, Lists “Compounding Factors”

In a statement, IndiGo acknowledged the large-scale disruption:

“We sincerely apologise to customers. A series of unforeseen operational challenges — technology glitches, winter schedule changes, adverse weather, system congestion and updated FDTL norms — created a compounding impact that could not have been anticipated.”

To stabilise operations, the airline has begun calibrated schedule adjustments for the next 48 hours, aiming to restore punctuality. Affected passengers are being offered refunds or alternate travel arrangements, IndiGo said.

What the FDTL Rules Require

The FDTL norms, designed to reduce pilot fatigue, cap duty and flying hours as follows:
•    Maximum 8 hours of flying per day
•    35 hours per week
•    125 hours per month
•    1,000 hours per year

Crew must also receive rest equalling twice the flight duration, with a minimum 10-hour rest period in any 24-hour window.

The DGCA introduced these limits to enhance flight safety.

Hyderabad: 33 Flights Cancelled, Long Queues Reported

Hyderabad’s Rajiv Gandhi International Airport saw heavy early-morning crowds as 33 IndiGo flights (arrivals and departures) were cancelled.

The airport clarified on X that operations were normal, advising passengers to contact IndiGo directly for latest flight status.

Cancellations included flights to and from Visakhapatnam, Goa, Ahmedabad, Delhi, Bengaluru, Chennai, Madurai, Hubli, Bhopal and Bhubaneswar.

Bengaluru: 42 Flights Disrupted

Bengaluru’s Kempegowda International Airport recorded 42 cancellations — 22 arrivals and 20 departures — affecting routes to Delhi, Mumbai, Chennai, Hyderabad, Goa, Kolkata and Lucknow.

Passengers Vent on Social Media

Irate travellers took to X to share their experiences. One passenger stranded in Hyderabad wrote: “I have been here since 3 a.m. and missed an important meeting.”

Another said: “My flight was pushed from 1:55 PM to 2:55 PM and now 4:35 PM. I was informed only three minutes before entering the airport.”

Delhi Airport Hit by Tech Glitch

At Delhi Airport, the disruption deepened due to a slowdown in the Amadeus system — used for reservations, check-ins and departure control.

The technical issue led to longer queues and sluggish processing, adding to delays already worsened by staff shortages.

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News Network
November 24,2025

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Israeli forces have pushed over the Syrian frontier, erecting a checkpoint and stopping vehicles in the southwestern city of Quneitra, in yet another breach of the Arab country’s sovereignty.

The violation took place on Sunday, when the troops made their way across the border, setting up the outpost near the Ain al-Bayda junction in northern Quneitra, Syrian outlets reported.

According to the al-Ikhbariya paper, an Israeli detachment positioned itself at the junction, halting cars and conducting searches.

The Syrian Arab News Agency (SANA) reported that three Israeli military vehicles then moved further into the northern countryside, deploying between the town of Jubata al-Khashab and the villages of Ofaniya and Ain al-Bayda. The agency added that a separate Israeli unit mounted a new incursion in the central region, approaching the villages of Umm Batina and al-Ajraf.

Residents said such activities have surged in recent months, pointing to Israeli advances onto farmland, leveling of extensive forested areas, arrests, and spread of mobile checkpoints.

The Israeli regime began markedly increasing its military aggression against Syria last year.

The escalation coincided with increasingly ferocious onslaughts throughout the country by the so-called Hay'at Tahrir al-Sham (HTS) Takfiri terrorist group, which the government of President Bashar al-Assad had confined to northwestern Syria. The HTS, however, managed to overthrow the government as the Israeli attacks would pummel the country’s civilian and defensive infrastructure.

Various reports have shown that, during the escalation, the regime conducted more than 1,000 airstrikes on the Syrian territory and over 400 ground raids into the south.

Following the collapse of the Assad government, Tel Aviv also widened its grip over the occupied Golan Heights by taking control of a demilitarized buffer zone, in defiance of a 1974 Disengagement Agreement. Earlier this month, senior Israeli officials, including Prime Minister Benjamin Netanyahu, visited the buffer zone, prompting expressions of alarm on the part of the United Nations.

The United States, the regime’s biggest ally, has, meanwhile, been fraternizing the HTS head Abu Mohammed al-Jolani amid the widely reported prospect of rapprochement with Tel Aviv.

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