By Daphne Delaski, Vaibhav Mathur, and Sachi Shenoy
There are slow and steady signs of life returning to normal in this country of 1.4 billion, but talk to any Indian, and the trauma from the second Covid surge is still fresh. The virus raged between March - May 2021, sparing virtually no corner of India, and the full extent of the damage has yet to be determined.
In close partnership with our longstanding collaborator, Augeo Advisors, we conducted in-depth interviews with 60 jobholders from six partner companies (Bastar Se Bazaar Tak, Haqdarshak, Hasiru Dala Innovations, Manikstu, ONganic, and Shoegaro) across eight different states. We feared this wave, more lethal than the first, would disproportionately affect the poor, but we did not know how. We wished to hear in the jobholders’ own words what they were experiencing and what support they most needed.
When Covid first hit India in March 2020, the government instituted a strict lockdown, and all commerce ground to a standstill. The first wave, then, was characterized as an economic crisis. In contrast, we hypothesized that the 2021 surge was a healthcare crisis first and foremost. We heard about staggering case counts in every city and village in India, and assumed that many of our entrepreneurs, jobholders, and their loved ones were getting sick. We assumed that their primary concern would be centered around access to healthcare and recovery.
We were wrong.
Only 10% of our respondents actually reported getting ill or taking care of a sick relative, while 90% shared that, at some stage in the past year, they faced economic impacts due to the pandemic. 58% said that they faced a much graver financial crisis during the second wave and lockdown compared to the first. Now, many admitted to feelings of despair and hopelessness as they still feared a third wave.
These are our key takeaways as we reviewed the interview transcripts:
India’s second surge was an economic crisis more than it was a healthcare crisis, and possibly a more devastating economic crisis than the first wave.
The poor have fallen deeper into debt as a result of this second wave, and it may take them years to work their way out of this hole.
Feeling trapped by debt, having exhausted their savings, and uncertain about their livelihoods, most jobholders had a bleak view of the future. Their mental and emotional well-being were dealt a bad blow.
Most were supported in some way by Upaya’s partner companies, whether through vaccine drives or partial wage payments. Most, however, expect the government to do more, and want to avail of food subsidies and other services.
Almost all respondents reported facing economic challenges during the second wave. While about 12% lost their primary earning source entirely, a large majority reported a significant decrease in income levels. As Upaya found in our 2020 Covid surveys, the limited savings jobholders did have were exhausted during the first wave of Covid. During the second wave, jobholders resorted to taking informal loans to keep themselves and their families afloat. This additional financial burden is further eroding morale and their future hopes.
“During the first lockdown, I at least had some savings. Then, after the lockdown was revoked, we had to take a loan to start our work, but then another lockdown was imposed. At that point, our money was already spent, so again we invested and faced the same consequences. Now I have nothing. Even if the lockdown is lifted, we will have to think about how to start our work, because we have nothing left” - Male, 34
“We are a farming-based family. Because of the pandemic, our farming income has decreased. Our average monthly income has reduced by 50% during the pandemic.” - Female, 25
Some respondents were able to retain their incomes to an extent, especially during the periods when local lockdown restrictions were eased. However, those with a trading or supplier relationship with the partner companies have faced major challenges as the wheels of the overall economy came to a virtual standstill.
One thing we were most pleased to hear from jobholders is that most still have a very positive attitude toward their employer companies who, according to them, have been one of their most crucial support mechanisms. They are confident in continuing their relationship with the companies in the future and were grateful for the support they’ve received. That being said, jobholders did express an understanding that their employers themselves are facing a difficult economic situation and are working on solutions to stay afloat. They are pinning their hopes on the efforts of the companies to offer continued opportunities to have stable income.
“[The relationship with the company] is good. The company is the source of our survival. They help us every time we need help. We have been doing well here and look forward to continuing work with the company to help its development.” - Female, 40
When asked about mental health, it was clear that most jobholders didn’t recognize this as an issue since economic concerns take most of their attention; they professed having little time and space to focus on mental wellbeing. However, a portion of the respondents did mention the embargo on social interactions was concerning for their overall wellbeing. This was especially true amongst the respondents from rural areas.
It was clear to us that mental health had been adversely affected, even if jobholders did not call this out by name. Responses ranged from anxiety and fear, to despair and a certain pessimism about the future. Some also reported that Covid-related lockdowns posed new challenges on their physical wellbeing, as their usual movement and activity became restricted, and this too compounded their frustrations.
“Before the lockdown my situation was good. I was working, and there was a steady income. Since the lockdown, income has stopped, and it has become difficult to pay the installments for the loans I had taken.” - Male, 37
“The effect has been so drastic that it is not possible to describe it in words. All the work has stopped, paying the rent has become an issue, and even managing daily expenses is becoming a problem.” - Female, 35
When seeking support, jobholders reported economic recovery as their highest priority. Any support to alleviate this particular issue will have maximum short term impact on jobholders and their families. This could be through direct cash support to alleviate debt or opportunities for additional income generation. Additionally, jobholders would like easier access to government schemes—such as food grains, ration kits, or fuel subsidies—which could help bridge any gap in income they may be experiencing.
Despite how difficult the past few months have been for these households, we were pleasantly surprised by some respondents’ determination to push through and maintain a positive outlook. They acknowledged that this would take effort—not only for themselves but for those around them—and that it was a necessary part of the recovery process.
“I have been working with this company and earning money for the survival of my family. We believe that the company will always support us during difficult times, and when the company will develop, then we will also develop. Hence, we will be working with the company to get more benefits and grow.” - Male, 40
Our jobholder surveys were conducted with the support of our participating portfolio partners: Bastar Se Bazaar Tak, Haqdarshak, Hasiru Dala Innovations, Manikstu Agro, ONganic Foods, and Shoegaro.
Daphne Delaski and Sachi Shenoy work at Upaya Social Ventures on the Impact Management team. Vaibhav Mathur is a Partner at Augeo Advisors.
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Photo by Darshan Gajara on Unsplash
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