The COVID-19 crisis has brought the country’s economy to a halt. While the distressed industries are facing it difficult to manage their cash flows, this has caused a spike in the unemployment rate in the country.
With no means to sustain their livelihood, the pandemic has forced the migrant labourers working in various global supply chains in different states to return to their home states.
Since many labourers would now avoid traveling to different states for work, this would lead to a huge burden on the states to channelize their workforce and boost employment, a report in Economic Times suggests.
Despite these tough times, states like Odisha and Bihar could set-up new industries which would not only boost the employment but also increase the demand for services, say experts.
Many economists believe that, states like Bihar, Odisha and Jharkhand have land, abundant water resources and are now getting its migrant population back. This could easily give the industry a head start followed by a cost-benefit analysis, wherein the costs of setting-up factories would be less.
Besides this, the industrialists could solve the problem of capital only if the state governments are interested to leverage this opportunity and relax various laws related to investments and setting-up new businesses. They would pay even more if the states can ensure adequate availability of power, which is responsible for the smooth running of industrial operations.
While many industries are looking to leverage the Bay of Bengal in the eastern region, therefore, more industries in those states could also ease the burden on western seaboard. The move could also help the central government in converting the Ganga into an industrial transport corridor, the report further explains.
