Downturns in the economy always affect those who are already in a precarious situation first. This is why it is important for the state to develop mechanisms and systems to protect people in case the worst comes to pass. In India in 2020, with the covid-19 pandemic the worst did indeed come to pass and those on the margins of society were pushed into strenuous circumstances. 

The Indian economy has a vast and persistent informal sector. According to estimates by the International Growth Centre, between 75-90% of the employed workers in India may belong to the informal sector. Conservatively, this means that 3/4ths of the Indian workforce does not have access to permanent employment. 

There is also further marginalization within the informal sector. Consider for example the position of women. In India women - although equal to men before the law - have a much worse position in society than men. Economically, they have fewer opportunities due to unequal access to education and discrimination in employment. Most housework, which is gruelling, is also relegated to them -- something for which they receive no reimbursement whatsoever. Then it is easy to understand that within the informal sector they are faced with many difficulties.

These difficulties were only compounded by the covid-19 pandemic. First there was an increase in domestic work due to the lockdown especially associated with looking after children or the elderly. This is in part due to closures of schools and the vulnerability of the elderly to the disease. The fact that these burdens fell solely upon the women of the household should come as no surprise as well. 

Secondly, as one can imagine, there was a severe drop in the incomes of female informal sector workers. In the construction sector, nearly all work dried up. 97% street vendors and small retailers reported a decrease in access to income due to the decrease in consumption prompted by the lockdown.

The story of domestic workers is a bit more complicated. At the onset of the lockdown in late March, they had already received salaries for the month. However as the weeks passed, this could not sustain them or their households and further payment was not forthcoming. 

These pressures on income translated into an underperformance of the consumption sector of the economy. No doubt, the GDP of India has taken a massive hit due to covid-19 and the subsequent lockdown. More research is needed to determine the regional disparities for public services provision in India varies greatly across the country.