November 26, 2025

Restarting The Wheels Of The Economy

By Sunil Garodia
First publised on 2020-04-16 08:09:36

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Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator.

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It is good that the Centre has come out with detailed guidelines about restarting economic activity in certain sectors and areas after April 20. While the outbreak of Covid-19 had forced the government to take tough, but extremely necessary, the decision of imposing the country-wide lockdown, the economic cost of the same is now becoming back-breaking. Hence, a partial lifting of the lockdown was necessary. The government’s hand was forced due to three main reasons. First, it is the time of the harvesting season for the Rabi crop and any crop damage could result in further farm distress, food shortages and a huge rise in prices. Second, if production in some sectors was not allowed and transportation, including courier, activities were kept suspended for a longer period, supply chains would have been affected. The success of the lockdown depends primarily on making essential commodities available to the people. Hence, it was necessary to allow these activities. Lastly, the huge army of migrant labour, pinned to their current locations without work or wages, was getting restless and it is better to open avenues of work and earning rather than provide doles.

Hence, the government has done well to allow the resumption of activities in agriculture, fisheries and aquaculture, health services, pharmaceuticals manufacturing units, financial markets regulated by the RBI, dhabas on highways, courier services, work under MGNREGA, SEZs, export-oriented units and industrial estates and townships under several conditions and restrictions. These activities will obviously not be allowed in areas designated as Covid-19 hotspots. There is a need to keep a strict watch on these activities in all areas as any relaxation in following social distancing and other preventive measures could lead to a disaster. Any return to pre-Covid-19 scenario of crowded factory or transport areas and wholesale markets could wipe out all the gains achieved by the 21-day lockdown in the fight against the pandemic.

No one will deny that there is an urgent need to do a balancing act between saving every citizen from the pandemic and saving the poor by restoring their source of earning, as also ensuring that the GDP growth of the country does not take such a huge hit that it will take several years for it to recover. But in doing so, care also needs to be taken so that the less affected areas, where the economic activity will now be allowed, do not become hotspots. For, as the health ministry has said, one infected person can infect five or more persons without the lockdown or if strict social distancing norms are not followed. Any lapse in areas where the economic activity will now resume can quickly propel the country to the stage of community transmission. Strict policing of activities in these areas will be necessary once they resume.