Covid-19 lockdown anniversary: India yet to recover from unemployment blow

News Network
March 24, 2021

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India is still not out of the woods as far as unemployment is concerned after a year when the lockdown was imposed to contain the spread of deadly Covid-19 on March 25 last year as pandemic-induced job loss has not tapered off consistently.

The government had imposed a lockdown to curb the spread of the pandemic but this impacted economic and commercial activities and resulted in job loss and later on the exodus of migrant workers which rocked the entire nation.

According to the Centre for Monitoring Indian Economy (CMIE) data, the unemployment rate was recorded at 6.9 per cent in February 2021 which is slightly better than 7.8 per cent in the same month last year and 8.8 per cent in March 2020, during which lockdown was imposed.

The data showed that the unemployment rate had peaked to 23.5 per cent in April and remained at 21.7 per cent in May. It started tapering off from June onward when it was recorded at 10.2 per cent in the month and further improved to 7.4 per cent in July.

However, the unemployment rate again rose slightly to 8.3 in August and improved to 6.7 per cent in September last year, as per CMIE data.

In October, unemployment again rose slightly to 7 per cent and then eased to 6.5 per cent in November last year as per the data.

The CMIE data showed that the unemployment rate had risen to 9.1 per cent in December 2020 and improved in January to 6.5 per cent.

Experts said that the CMIE data indicated improvement in the unemployment scenario from July onwards, but there is a need for consistency which would only come after an increase in buoyancy in the manufacturing and services sectors.

They were of the view that the farm sector has done well which engages over 55 per cent of the country's population but there is a need for improvement in hiring in urban and industrial areas.

They opined that the government has taken many steps to boost fresh hiring in the country but repeated policy interventions and monitoring of existing schemes and initiatives at the ground level are required to achieve consistent improvement in the employment scenario in the country.

According to labour ministry data, around 16.5 lakh people have benefited from the Aatmanirbhar Bharat Rozgar Yojana (ABRY) which was launched in October to encourage hiring in the country amid the COVID-19 pandemic till March 9, 2021.

The scheme was introduced on October 1, 2020, to incentivise the creation of new employment along with social security benefits and restoration of loss of employment during the pandemic.

This scheme, being implemented through the Employees Provident Fund Organisation (EPFO), reduces the financial burden of the employers of various sectors/ industries and encourages them to hire more workers.

Under the ABRY, the government is crediting for a period of two years both the employees' share (12 per cent of wages) and employers' share (12 per cent of wages) of contribution payable.

Under the ABRY, about 16.5 lakhs beneficiaries registered themselves with the Scheme from October 1, 2020 and out of this, approximately 13.64 lakhs are new joinees with UAN (universal account number) generated on or after October 1, 2020, and approximately 2.86 lakhs are re-joinees who were rendered un-employed during the pandemic from March 1, 2020 to September 30, 2020, and rejoined from October 1, 2020, onwards.

The experts said that the government intends to create 50 lakh to 60 lakh jobs through the ABRY in two years' time, but it required close monitoring and well-planned implementation to achieve the desired objective.

Under Pradhan Mantri Garib Kalyan Yojana (PMGKY), the government has contributed both 12 per cent employer's share and 12 per cent employee's share under Employees Provident Fund (EPF), totaling 24 per cent of the wage for the wage month from March to August 2020, for the establishments having up to 100 employees with 90 per cent of such employees earning less than Rs 15,000.

Under the PMGKY scheme, Rs 2,567.66 crore was credited in EPF accounts of 38.82 lakhs eligible employees.

The recently released latest EPFO payroll data showed that net new enrolments with the retirement fund body grew about 28 per cent to 13.36 lakh in January compared to the same month in 2020.

The data also reflected a growth of 24 per cent for January 2021 over December last year.

The EPFO has added around 62.49 lakh subscribers during the first ten months of the ongoing fiscal year, the data showed.

During 2019-20, the number of net new subscribers rose to 78.58 lakh as compared to 61.12 lakh in the preceding fiscal.

The EPFO payroll data also gives a perspective about the employment scenario in the country.

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News Network
April 20,2024

Union Finance Minister Nirmala Sitharaman, on Friday, said that the Bharatiya Janata Party (BJP) plans to reintroduce electoral bonds in some capacity following extensive consultations with all stakeholders, should it come back to power in the 2024 general elections, according to a report in the Hindustan Times (HT).

HT cited Nirmala Sitharam as saying, “We still have to do a lot of consultation with stakeholders and see what is it that we have to do to make or bring in a framework which will be acceptable to all, primarily retain the level of transparency and completely remove the possibility of black money entering into this.”

However, the Centre has not yet decided whether to seek a review of the ruling made by the Supreme Court (SC), she said.

She further added, “What the scheme, which has been just thrown out by the Supreme Court, brought in was transparency. What prevailed earlier was just free-for-all.”

Launched in 2018, electoral bonds were accessible for acquisition at any State Bank of India (SBI) branch. Contributions made through this programme by corporations and even foreign entities via Indian subsidiaries received full tax exemption, while the identities of the donors remained confidential, safeguarded by both the bank and the recipient political parties.

On February 15, a five-judge Constitution Bench struck down the scheme, deeming it ‘unconstitutional’ due to its complete anonymisation of contributions to political parties. Additionally, the Bench stated that the articulated objectives of curbing black money or illegal election financing did not warrant disproportionately infringing upon voters’ right to information.

FM Sitharaman said, some aspects of the scheme need improvement and they will be brought back following consultations.

She also lashed out at the Opposition’s claims that the BJP disregarded criminal charges against leaders who switched from other parties to join the ruling party.

The HT quoted her as saying, “The BJP can’t sit here and say, you come to my party today, and the case will be closed tomorrow. The case has to go through the courts that have to take a call; they will not just say, “Oh, he’s come to your party, close the case.” Doesn’t happen that way. So is this washing machine a term they want to use for the courts?”

She further said that the Union government plans to simplify the process of taxation and make it easy for investments to come through into the country.

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News Network
April 22,2024

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Mangaluru: BJP candidate in Dakshina Kannada Capt Brijesh Chowta has received a letter from Prime Minister Narendra Modi wishing him victory in the election.

In the letter, which the BJP shared with the media, the PM has lauded Chowta’s exceptional services in the armed forces as a part of the Gorkha regiment, especially in counter-insurgency operations. Modi also has mentioned about Chowta’s efforts as an organiser of the Mangaluru Lit Fest and his dedication to preserve the cultural heritage of the region.

“I am certain that you will immensely contribute towards the welfare of people and the region of Dakshina Kannada. Through this letter, I would like to tell the people of your constituency that this is not an ordinary election. Families across India, especially the senior members, would remember the difficulties they have gone through in the last five to six decades. In the last 10 years, the quality of life of every section of society has improved, with many of these troubles removed. Yet, a lot more is still to be done and this election will be decisive in our mission to ensure a better life for everyone,” reads the letter. 

“Your exceptional service in the armed forces as a part of the Gorkha regiment, especially in counter-insurgency operations, is commendable. Additionally, your efforts as an organiser of the Mangaluru Lit Fest demonstrate your dedication to preserving the cultural heritage of the region. I am certain that you will immensely contribute towards the welfare of people and the region of Dakshin Kannada”

“With the blessings of the people, I am confident that you will reach the Parliament. Team members like you are a great asset for me. As a team, we will leave no stone unturned for the welfare of the people of your constituency and the country. Through this letter, I would like to tell the people of your constituency that this is not an ordinary election. Families across India, especially the senior members, would remember the difficulties they have gone through in the last 5-6 decades. In the last 10 years, the quality of life of every section of society has improved, with many of these troubles removed. Yet, a lot more is still to be done and this election will be decisive in our mission to ensure a better life for everyone.

“This election is an opportunity to connect our present with a bright future. Every vote that the BJP gets will go towards forming a stable government and impart momentum in our journey to become a developed nation by 2047. The people of India themselves have made up their minds to support this vision and are leading the way in this election. I am aware that the summer heat poses problems to everyone. But this election is extremely important for the future of our nation. I appeal to the voters to cast their votes early in the morning, before the heat sets in.

“It is important that our workers motivate people to go out and vote in large numbers. Focus on winning the booth. Victory in every booth leads to success in the constituency. At the same time, I request workers of our party to take care of their health and that of other people around them. As a candidate of the BJP, I urge you to convey my assurance to each voter that every moment of my time is dedicated to the welfare of my fellow citizens. I send you my wishes for your victory in the election,” stated PM Modi in the letter.

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News Network
April 23,2024

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Hubballi, Apr 23: Karnataka Chief Minister Siddaramaiah on Tuesday spoke to father of slain student Neha Hiremath over phone and said "sorry" over his daughter's killing, and assured that "we will be on your side".

The Chief Minister also informed Niranjan Hiremath, who is also a Congress councillor of Hubballi-Dharwad Municipal Corporation, about the government's decision to hand over the murder case to the Criminal Investigation Department (CID) and setting up a special court to fast-track trial.

"Niranjan... very sorry. We will be on your side," Siddaramaiah told Hiremath over the phone call during state's Law and Parliamentary Affairs Minister H K Patil's visit to Hiremath's house here.

In the conversation on Patil's phone with speakers on, Siddaramaiah can be heard informing Hiremath about the CID probe and setting up a special court.

"It is a serious offence... setting up a special court will ensure punishment for the accused person."

Hiremath thanked Siddaramaiah on behalf of his family well-wishers and the community for handing over the case to CID and setting up a special court "...ensure there is an order at the earliest and provide us justice," he said, as he also thanked Patil, Home Minister G Parameshwara, local Congress MLA Prasad Abbayya and others for their support.

Replying to this, Siddaramaiah said, "We will ensure it, at the earliest."

In a shocking incident, Neha Hiremath (23), was stabbed to death on the campus of BVB College last Thursday. The accused Fayaz Khondunaik, who fled from the scene, was arrested by the police subsequently.

Neha was a first year Master of Computer Application (MCA) student and Fayaz was earlier her classmate.

Siddaramaih on Monday had announced his government has decided to hand over the investigation into the incident to the Crime Investigation Department, and to set up a special court for speedy disposal of the case.

The case of brutal murder, which sparked widespread outrage, has snowballed into a political slugfest between ruling Congress and opposition BJP.

While the ruling party has tried to project it as an incident with personal angle, the saffron party has called it a "love jihad" case and has said it's a testimony of deterioration of law and order in the state.

Earlier, Siddarmaiah's statement that the murder was due to "personal reasons" and Home Minister G Parameshwara's comments that the duo was in love, has elicited sharp reactions from Hiremath and family members and opposition parties.

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