15th June, Guwahati: According to an estimation, 139 Million people which is about 30% of India’s urban population may deplete their lifetime savings by the end of June. This will result in difficulties to meet essential consumption.
A recent survey estimated that 84% of households in India suffered a severe loss in income since the lockdown. As income fell, Indians had to rely on their savings to cover essential expenditures.
It is estimated that the savings of people from the poorest cities are running out rapidly compared to other rich cities. It is also observed that the rural poor have been less affected than the urban poor.
Given the Government’s support to farmers and quicker reopening of the economy in rural areas, it is estimated that rural Indians would be able to recover essential consumption till the end of June. But in urban India, about 139 million Indians would still run out of savings by June end.
COVID-19 pandemic has hit every household severely. According to a report, 12 Lakh members of The Employee’s Provident Fund Organisation (EPFO) withdrew around ₹ 3,360 Crore retirement savings during the lockdown. Unveiling the fifth and final tranche of the ₹ 20 Lakh Crore economic package, 12 Lakh members of the EPFO have withdrawn as non-refundable advance of ₹ 3,360 crore during the past two months.
Image Source: Internet