oppn parties Restarting The Wheels Of The Economy

News Snippets

  • NCLT initiates bankruptcy proceedings against former Videocon chairman Venugopal Dhoot for defaulting on loans of Rs 6158cr as personal guarantor in two group companies
  • LIC approves 1:1 bonus share issue
  • Gold and silver futures also go down by 0.7% and 2.2% respectively
  • Stocks tumbled again on Monday as crude prices rose: Sensex went down by 703 points and Nifty by 207 points
  • Supreme Court refuses to cancel the land-for-jobs FIR against Lalu Prasad
  • The spectre of El Nino haunts India: IMD predicts 'below normal ' monsoon this year
  • Labour protest over increase in wages by 35% (as per Haryana example) turns violent in Noida, nearly 200 were detained by the police
  • Congress leader Sonia Gandhi said that the delimitation exercise must be carried out after the Census is complete
  • PM Modi says Parliament is on the verge of creating history as the Houses get ready to take up the women's reservation bills
  • Tata Sons chairman N Chandrasekaran said that TCS COO Aarthi Subramanian is conducting a thorough inquiry to establish facts and identify individuals involved in the sexual harassment allegations at the company's Nashik office
  • Asha Bhonsle laid to rest with full state honours on Monday in Mumbai
  • AAP leader Arvind Kejriwal once again approached the Delhi HC to request the recusal of a judge from his case
  • Candidates Chess: R Vaishali on the verge of creating history, but needs two wins - one with black pieces - against formidable opponents to emerge as the challenger
  • Rohit Sharma, who retired hurt in the match versus RCB, underwent scans for possible hamstring injury
  • IPL: Abhishek Sharma fails for SRH but Ishan Kishan (91) shines. Then, Vaibhav Sooryavanshi fails for RR and SRH bolwers, especially unheralded Praful Hinge (4 for 24) and Sakib Hussain (4 for 24) win it for SRH. This was the first loss for table-toppers RR
Supreme Court questions Election Commission about SIR SOP and why logical discrepancy was introduced only in Bengal
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.