Question

Briefly discuss five (5) ways in which economic planning can be used to reduce the economic impact of global pandemics such as the Corona Virus in the future.
[30 marks]

Answer 1

Answer)

Five different possible ways to address economic impact of global pandemics such as Corina Virus in future can be-

1) Focus should be largely on manufacturing sector, since this sector is lagging behind amongst all three sectors. So manufacturing sector need a boost.

Hence, focus should be on 'Assemble in India' integrated with 'Make in India' . This will create enough of job opportunities for the youth.

2) Technology should be extensively used to create raw materials for manufacturing industries. Eg. Growth of BT cotton should be emphasized to boost textile sector.

3) Domestic bottlenecks such as infrastructure, logistics, land clearance FDI norms should be clearly addressed.

4) Free Trade agreements with countries should be revised.

5) More printing of money could be a possible solution to RBI, since this will certainly not cause inflation due to lack of demand.

6) Open Market Operations can also be the possible solution to address the shortage of money supply.

7) Formation of Cooperative Societies should be emphasized. For eg. In rural areas, workers could form cooperatives according to their skills and demand for work. Eg. All tailors can form cooperative and directly take contract from textile factory, this will overcome the flaws of intermediaries and will improve their bargaining power.

8) Similarly, during reverse migration, formation of cooperatives can be a good solution to demand work and wages.

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