oppn parties Restarting The Wheels Of The Economy

News Snippets

  • Supreme Court rules that functional disability should be the deciding factor in granting road accident damages and not any doctor-issued disability certificate
  • Supreme Court flagged the fact that nearly 56% of the vehicles plying in India were uninsured and asked the government to challan them
  • An Air India flight from Phuket to Delhi encountered severe turbulence and 17 passengers were admitted to hospital with injuries
  • Calcutta HC said that heavens won't fall if Vande Matram is made mandatory to sing in madrasas
  • Kolkata Municipal Corporation has sought government nod for increasing city's wards to 200+ to keep residents in each ward between 16000 to 18000
  • Government has said that partially filled online Census forms may be allowed
  • Government may allow fees on UPI payments above Rs 2000, except on transfer between two individuals
  • Brent crude falls below $80 per barrel
  • Government has increased the LIC offer for sale to Rs 31,400cr with an additional 4% on the block
  • Stock markets become nervous on Tuesday due to Gulf situation: Sensex slides 210 points and Nifty sheds 159 points ahead of RBI MPC meets today
  • Indian cricket team lands in Sri Lanka for a 2-Test series
  • A former French Navy pilot who had alleged that IAF had lost Rafales during Operation Sindoor has been held in France on spying charges
  • An ordinary zari worked living just 100km away from Kolkata was stunned to find Rs 100cr deposited in the bank account. The bank has frozen her account pending enquiry
  • Businessmen in Kolkata gets a Rs 5-crore extortion call, allegedly from the Lawrence Bishnoi gang
  • NTA floats tenders to secure offices and exam materials round-the-clock
Tarun Tejpal, former editor of Tehelka, was sentenced to 10 years in jail by Bombay HC for raping a colleague. This judgment overturns the acquittal by a Goa sessions court
oppn parties
Restarting The Wheels Of The Economy

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

About the Author

Sunil Garodia Editor-in-Chief of indiacommentary.com. Current Affairs analyst and political commentator. Author of Cyber Scams in India, Digital Arrest, The Money Trap and The Human Hack

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.