labour market Current Affairs - 2020

United Nations releases World Economic Situation and Prospects Report, 2020

The United Nations recently released the World Economic Situation and Prospects Report, 2020. According to the report, the world economy is to shrink by 3.2% in 2020. The GDP growth in developed countries will decline to -0.5% in 2020.

Highlights: India

The report says that the growth rate of India in 2018 was 6.8% and in 2019 it was 4.1%. It will reduce to 1.2% in 2020. The report predicts that the growth of India will raise eventually in 2021 hitting 5.5%

Highlights: World

The Global economy is to gradually recover by 2021. The world economy will lose around 8.5 trillion USD due to COVID-19. Also, the global economy is to shrink by 4.9% in 2020. Around 34.3 million people are to enter below poverty line by 2020.

Also, the report say that several governments are rolling out uneven fiscal stimulus measures that are roughly equal to 10% of their GDP to minimize the crisis created by COVID-19 outbreak.

Solutions suggested

The report has suggested following solutions to combat COVID-19

  • The COVID-19 is disturbing fundamental premise of globalization. Therefore, stronger international cooperation is required to contain the virus
  • More liquidity should be pumped into the economies
  • The International Tourism should be given focus. Around 80% of the tourism has become idle rendering millions jobless.

GoI completes integrating Cold Chain Projects

On May 5, 2020, the Ministry of Food Processing held video conference to discuss about the completion of the integration of cold projects in the country. The promoters of the project were the main participants of the conference.

Highlights

Over 38 cold chain project promoters participated in the conference. The promoters shared their challenges and experiences on completing the projects. The challenges in running the cold chain projects during lock down were also discussed.

Challenges

The main challenge that was faced by almost all the promoters was piling up of stocks. The stocks of frozen vegetables and diary products piled up as their traditional markets such as hotels, restaurants and banquets were all closed due to lock down.

Another major challenge faced was the lack in working hours. This was because currently the cold chain is running only with one-third of the labour force. This has reduced the competitivity and increased the cost of production.

Discussions

The discussions were also held on impact of lock down on operations, raw material availability and high cost, labour and logistics issues, liquidity crisis, high inventory costs.

Cold Chain Scheme

The Cold Chain Scheme aims at value addition and preservation infrastructure to provide integrated cold chain. The integrated cold chain project was set under the scheme in partnership with Self Help Groups, Cooperatives, Corporations, Companies, Farmer Producer Organizations, PSUs, NGOs, etc.

Also the National Cold Chain Grid was launched under the scheme.