The Narendra Modi government at the Center has repeatedly claimed that the country’s economy is turning around after overcoming the Corona situation. But data from the Employees Provident Fund Organization (EPFO) indicates that the way around the economy is still not ok.
The Narendra Modi government at the Center has repeatedly claimed that the country’s economy is turning around after overcoming the Corona pandemic. But data from the Employees Provident Fund Organization (EPFO) indicates that the way around the economy is still rough. According to this data, the number of registered companies in EPFO has decreased by 30,000 in October as compared to September. This indicates that not all companies are doing as well as expected. Several companies are still cutting jobs due to the long crisis. This has been informed in the report published in the media.
Not only the number of EPFO registered organizations, but also the number of employees or members joining the provident fund decreased by 1.6 million in October. The number of individual contributors to the retirement fund in September was 46.7 million. It has decreased to 45.62 million in October. A government official told the media that the number of companies registered with the EPFO had dropped significantly in April. This number was improving every month until September. But in October that number dropped again.
The official, who did not want to be named, said the lockdown was relaxed, so it was a complicated situation. This may be due to financial constraints and a lack of greater demand. In such a situation, many have saved money as well as stayed away from EPF contributions.
The official added that the number of contributing members to the EPFO had dropped significantly in April. Then from May that number increased. However, that number was lower than the pre-lockdown period in September. September was the most contributing member in the current financial year.
Although the economy has started to turn around rapidly in the last few months, India’s problems remain unresolved. Experts believe that the reduction in the number of EPFOs and EPFs is a reflection of how difficult it is for some companies to turn around. Some economists think that government support may not be enough in this process of turning around.
Demand increased during the festive season. But many economists have speculated that the long-term growth trend may not be so in light of high unemployment and low incomes.
According to media reports, 4 crore 8 lakh 70 thousand workers had deposited money in EPFO in September. In October, that number has decreased by about 16 lakh to 4 crore 58 lakh 20 thousand. At that time there were 5 lakh 34 thousand 69 registered companies. In October, that number stood at 5 lakh 4 thousand 44. “It’s a complicated situation,” said a central administration official. This may be due to economic contraction and larger demand deficits. In this situation, the companies may not be depositing money in the EPFO for cost reduction at the moment, ”he said. Lockdown was imposed in the country from that time. The situation was slowly improving until this decline in October.