Opinion | Empty e-carts
1 min read . Updated: 11 Jun 2020, 10:28 PM ISTA survey has revealed that since the 17 May relaxation, only 36% of routine users have ordered non-essential stuff over the internet
Online orders for non-essential items such as gadgets are yet to see a jump three weeks after the government allowed e-commerce operators to deliver discretionary goods as well. A survey has revealed that since that 17 May relaxation, only 36% of routine users have ordered non-essential stuff over the internet. The survey, conducted by LocalCircles, a social media community platform, covered 16,000 respondents across 231 districts. Another 36% placed no orders at all. This suggests that people are conserving cash as the covid-19-induced uncertainty that has clouded the economy persists.
India appears to be caught in a vicious economic cycle, where weak demand is keeping business down, which in turn has been prompting layoffs, resulting in income losses, which squeeze consumption even further. Just the fear of a job loss is enough for many to contain expenditure. This cycle needs to be reversed for the economy to rebound. The government would have to put more money into the hands of those most likely to use the cash quickly. The poor are ideal candidates not just from a welfare point of view, but for a demand boost, too.
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