Impact of Covid-19 on the Rural Economy: Evidence from a Village in Uttar Pradesh

Abstract : Covid-19 has spread at an alarming speed and has affected the world in so many different aspects. Covid 19 is a public health crisis that has shaken the global economy and financial market. India's economy has been a slowdown in the recent few years. India's growth rate has been reduced to 5.3% (Moody's) in 2020, which is the lowest in the last 11 years. Household Survey was taken in the village Shivrampur, Bhadohi, Uttar Pradesh, from the time period of February 2021 to March 2021. 82.4% of the total response of people in Shivrampur faced severe income cut, and most of them are working in the unorganized sector. Out of them, 40% of the respondents managed their family expenses through their personal savings, which was the most chosen way to survive the income cut. Though agriculture should be getting the highest priority, people are shifting from agriculture is not much profit mention by many of our respondents. Scheduled caste and other backward castes, particularly the Harijans, Pals, and Sarojs, use cattle husbandry for their livelihood. This is a significant source of secondary income for them. Only 14% of the population works for the government. We conducted a survey of 51 households, of which 27 had taken out a loan and 24 had not taken out any type of loan. People who did not accept a loan from any source demonstrate that they do not believe in borrowing. Most of the people have taken a loan at an interest rate of 5%, and the secondhighest rate of interest is equal to 10%, The Rs. 20000 above average income earning population of 16% came down to 5.9% after the lockdown, which is an alarming issue.