(The article “Containing The Likely Fallouts Of Covid-19 On Indian Economy” published in “Business World”)
Shun Negativity And Show Resilience
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(The article “Containing The Likely Fallouts Of Covid-19 On Indian Economy” published in “Business World”)
1 out of every 3 retail stores may shut after lockdown is over. Tourism, aviation and building sectors will lay off employees. The forthcoming days need effective planning from the cabinet.
India will have to increase budget allocation towards health and environment other we will lack facilities during such emergencies. It should be at least 5 percent of GDP.
There is news that the only Indian billionaire who could increase wealth even in the midst of coronavirus slowdown is owner of D-mart stores. It shows the only thing selling is FMCG and grocery.
Share market has shown some optimism in past few days and this reflects the investors’ interest in government readiness and ability to deliver. But some stocks like banks are under stress.
The world bank has committed 1 billion dollars in Indian fight against coronavirus. These fund will be deployed in PPEs and testing kits. Government will have little room for sops to industry.
At this time the Modi government shall not care about how much money is spent on welfare measures. This is because health should be given preference over economy.
A vast number of people are employed in hospitality and tourism and they have nowhere to go since they do not possess any other skills. This gap has to be addressed through skill training.
A bailout for airlines is not possible at this moment when all sectors of economy are under intense pressure. May be some players can be consolidated.
MSMEs need urgent intervention from commerce ministry. A special package with moratorium on EMIs and subsidy to pay salaries to worforce has to be worked out without any delay.
The way Indian government has shown eagerness in limiting the negative impacts of coronavirus is commendable. Economy will recover slowly once lockdown is lifted.
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