Rural Economy in India with special reference to Andhra Pradesh: Need for Reforms

They will go to die there, where there is life. COVID-19 lockdown flooded streets with migrant labourers which were marching to their villages to find warmth and empathy. Many reached their homes but several failed and died on streets and railway tracks. The current study offers insights on the plight of migrant labourers and impact of COVID-19 on rural economy in India. The major finding of the study suggests 400 million workers in India in the informal economy are at the risk of falling deeper into poverty during the crisis. The low reporting of COVID-19 cases due to low testing will result in community spread. The reverse migration will create excess pressure on the agriculture and rural economy which will result in a significant number of people to fall into abject poverty. COVID-19 will have both short and long-run effect on the rural economy in India. The government economic package contains majorly long-term measures whereas short-term measures such as cash incentive and wage subsidy should be given to save migrant labourer and marginal farmers. Above all, mass corruption in the system is the biggest challenge in the effective implementation of plans.
Gross State Domestic Product (GSDP) and per capita income show that while AP has continued to grow, there are clear pockets of stagnation. Regional studies indicate that districts in regions like Telangana (before bifurcation), Coastal Andhra, and Rayalaseema had widely divergent growth rates. Some districts exceeded the state average in growth. This empirical analysis of inclusive economic growth and regional disparities in Andhra Pradesh highlights the complex and uneven nature of development within the state. While Andhra Pradesh has recorded notable economic progress over the past decade particularly in terms of Gross State Domestic Product (GSDP) growth, infrastructure expansion, and sectoral diversification these gains have not been uniformly distributed across regions or social groups. The findings clearly indicate that growth alone has not guaranteed inclusiveness, and significant inter-regional disparities persist.

COVID-19, Migrant Labourers, Reverse Migration, Rural Economy, Informal Economy, Poverty, Agriculture, Economic Crisis

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