COVID-19: Priority Tasks for Powering India to Urgent Economic Revival
The coronavirus (COVID-19), as of 23 April 2020 has infected around 2.64 million people worldwide and claimed about 0.18 lakh lives globally. It is not just a pandemic—it is also a burgeoning (global) economic crisis. What the world is going to face economically in 2020 is likely to be as bad as what the world faced in 1930—the Great Depression, when much wealth was wiped out over a period of ten years.  
 
As per IMF data, in early January 2020, about 160 member countries were expected to report positive per capita income growth in 2020. Three months later, this has flipped. IMF now expects about 170 countries to report negative per capita income growth in 2020. That is how serious it is. 
 
In India too as COVID-19 has raged, about 21,370 people have been infected (as of 22nd April) and, at the same time, 681 have died. Without a doubt, government of India, state governments, private sector and civil society need to be congratulated for the wide ranging measures successfully adopted towards containment of COVID-19. 
 
That said, what is, however, serious is that the Indian economy is facing its toughest run in recent years. Especially coming against the backdrop of an already stuttering economy, COVID-19 has run amok in terms of economic growth as the measures for containment of its spread (lock-downs etc.) have pushed the Indian economy to the brink. 
 
The government of India has responded to the best of its ability. The first official stimulus of about Rs1.7 lakh crore came several weeks ago. The Reserve Bank of India (RBI), likewise, has cut interest rates twice and has also initiated measures to enhance liquidity in the financial system, apart from offering a package for direct lending to agriculture, small and medium enterprises (SMEs) and microfinance clients. The government is said to be readying another stimulus package right now and this is also very welcome.  
 
That said, what needs to be done on priority now relates to the economic aspects of COVID-19. Here are some priority tasks briefly described below: 
 
STRENGTHENING SUPPLY CHAINS FOR ESSENTIALS AND FOOD/AGRICULTURE ITEMS: A key task is ensuring smooth flow of materials and outputs through (already somewhat disrupted) supply chains for essential goods (including medicines) and food and agricultural items. Keeping these supply chains in good (if not seamless) running condition and well-oiled to ensure availability of the various essentials and food items is most urgent and of paramount importance. 
 
This is also critical for ensuring livelihood security to many informal sector workers, farmers and others. Furthermore, this is very necessary for ensuring food security of the country from a short-, medium and long-term perspective.  
 
ECONOMIC PACKAGES FOR POOR, FARMERS, MSMES & OTHERS: Delivering and implementing stronger economic packages for the poor and informal or unorganised workers, farmers, MSMEs and other vulnerable groups is an equally urgent task. These groups approximately contribute a little over 45% to India’s GDP and they are very crucial in terms of the unique skills sets and distinctive competencies that they possess. Therefore, there is an urgent need to support these groups, ensure their livelihood security and preserve their key skills. 
 
Especially, these rescue and rehabilitation packages for the poorest of the poor, the working poor (daily wage earners), the agriculturists and (m) SMEs must build their survival, staying and negotiating power in a market place where their vulnerability can be exploited by middlemen cartels. We are already seeing farmers exploited and this is being reported from around the country. We also need money in the hands of people, and urgently.
 
ECONOMIC SUPPORT AND REFORM IN KEY SECTORS HUGELY IMPACTED BY COVID-19: Providing immediate economic support and reform (including investment, cash flow support, rationalisation, deferment or waiver of taxes and duties and other crucial reforms) to key sectors like aviation, hospitality, travel, tourism and microfinance (which is the most vulnerable in the financial sector) is also a much required task. 
 
For example, this is the right time to bring in radical reforms to the aviation sector—e.g., on aviation turbine fuel, structuring of bays or slots at airports and payment for these, etc. The economic support and reform to these key sectors is again likely to contribute to livelihood security of large numbers of organised as well as unorganised workers, apart from helping to lay the foundations for (building) a resilient and stronger economy, post lock-down. 
 
That said, we also need to see these sectors really step up in terms of safety protocols and procedures so that the vital infrastructure to get the economy moving is ready. It goes without saying that production of key medical supplies and personal protective equipment (PPEs) must be supported big time as a corollary.
 
To reiterate, the need of the hour is a coordinated and comprehensive economic response to COVID-19. We need the government of India, state governments, multi-laterals, private sector, civil society and other stakeholders to work together and in tandem to create the greatest economic revival package in history of India. But this has to be done immediately and simultaneously along with containment measures to prevent further spread of COVID-19.
 
At the minimum, along with significant global economic help, countries like India that have very large vulnerable populations must be willing to spend at least 10% - 15% of their current GDP as an economic stimulus over a period of time. And, of course, there are creative ways to do it. It is now or never. Only if people survive, the question of protecting them from disease and sustaining their livelihoods come. Therefore, the economic revival package must take shape now in totality, although it can be delivered on a piecemeal basis. Swiftness in getting the economic stimulus on the ground is crucial and the government of India, state governments, multi-laterals and other stakeholders must act with great speed, agility and flexibility. We need an immediate, solid and comprehensive economic response to COVID-19 to help the people of India fight out this crisis economically and it can certainly be done. 
 
(Ramesh S Arunachalam is author of 12 critically acclaimed books. His latest release in January 2020 is titled, “Powering India to Double Digit Growth: Five Key Steps To A Robust Economy”. Apart from being an author, Ramesh provides strategic advice on a wide variety of financial sector/economic development issues. He has worked on over 311 assignments with multi-laterals, governments, private sector, banks, NBFCs, regulators, supervisors, MFIs and other stakeholders in 31 countries globally in five continents and 640 districts of India during the last 31 years.)
Comments
shetyerb
4 years ago
There is no mention about the financial assistance from The Center to the States although Thousnds of crore of "Dues Payable" , 15000 crore of Maharashtra alone are not paid. Maharashtra Dues are outstanding for 6 months. The State is paying interest on the loans it has taken. The Center is not going to pay interest on the Dues when they are paid.
rameshsa2009
Replied to shetyerb comment 4 years ago
Thank you for your comments. Fair Point. That is covered in another piece which looks centre - state relationships and how the synergies can be used to tackle covid 19 effectively. Thanks for your patience in waiting for this article, which will come soon. Thank you.
yerramr
4 years ago
The liquidity pumped in did not go to the intended sectors from Banks. This requires regulatory monitoring. Agriculture and MSME sectors have not got the benefit. Any such directive should non-discriminatory and non-discretionary in a situation like this when most manufacturing with exception of medical instruments and pharma are all shut in certain States still. When the units are shut, how and for what purpose the credit will flow? Moratorium does not require liquidity support.
rameshsa2009
Replied to yerramr comment 4 years ago
Sir. Thanks for your kind comments. The package I have asked for is for both the organized and unorganized sector (m) SMEs. Unorganized sector units are functioning in many places, especially in rural areas. There is also agriculture which needs money. A myopic look at SMEs as the organized sector can prove disastrous. India's GDP is fed to a huge extent by unorganized sector as also agriculture. Also, from 20th April, units have started to function and a key deterrent is the lack of funds. Money is required even during lock down because SMEs and others have been asked to pay salaries to the staff (many are doing so) and many cluster town units are doing that to prevent loss of crucial skill sets. Hope this clarifies. I agree with the spirit of your comment however. Thank you
rameshsa2009
Replied to rameshsa2009 comment 4 years ago
Sir. I agree on regulatory monitoring and that is covered in the following article today - https://www.moneylife.in/article/mitigating-the-impact-of-covid-19-a-to-do-list-for-rbi/60131.html
doctordhanbpathi
4 years ago
CORONAVIRUS DIAGNOSIS:

In the US the price for coronavirus diagnosis is Rs.3.5 lacs; whereas in India, the stipulated cost in a private Lab is Rs.4500/= the cost must be reduced to just Rs.50/= or 100/=; so that more citizens can seek the test comfortably.

FREE ONLINE & INSTANT DIAGNOSIS* OF COVID-2019 + IDENTIFICATION OF AFFECTED ORGANS BY ACUPRESSURE TECHNIQUES, subject to confirmation by the modern investigative device[s].
T & C--WHAT YOU HAVE TO DO TO AVAIL FREE ONLINE DIAGNOSIS OF CORONAVIRUS:

[i]. A stronger person [than the patient] must study this entire note, discuss it with others to understand the contents. [ii]. Down load the acupressure maps & contact on any day between 11.00 am-5.00 pm. For Free ONLINE Assistance-contact 91- 98493-67207 [email protected]
[iv]. Any suspected patients may have Dry Cough + itching throat, Fever above 100° Fahrenheit & difficult breathing + extreme fatigue; so that diagnosis is accurate to go in for coronavirus test in a designated diagnostic hospital/lab.

Palms & Soles: [3] Acupressure Maps-
https://lnkd.in/fbPrnRD
https://lnkd.in/fNw2tpB
https://lnkd.in/fYqBwmH

shetyerb
Replied to doctordhanbpathi comment 4 years ago
Is this so called Acupressure technique to Identify Coronavirus tried out in the Fatherland of Acupressure, China. I did not find this anywhere.
These days even Homeopaths as well as Ayurvedics claim to identify Corona. I must say these kind of statements MUST BE BACKED by factual, actual carried out tests on Corona patients.
doctordhanbpathi
Replied to shetyerb comment 4 years ago
In the US the price for coronavirus diagnosis is Rs.3.5 lacs; whereas in India, the stipulated cost in a private Lab is Rs.4500/= the cost must be reduced to just Rs.50/= or 100/=; so that more citizens can seek the test comfortably.

FREE* ONLINE* & INSTANT DIAGNOSIS* OF COVID-2019 + IDENTIFICATION OF AFFECTED ORGANS BY ACUPRESSURE TECHNIQUES, subject to confirmation by the modern investigative device[s].
T & C--WHAT YOU HAVE TO DO TO AVAIL FREE ONLINE DIAGNOSIS OF CORONAVIRUS:

[i]. A physically stronger person [than the patient] must study this entire note, discuss it with others to understand the contents. [ii]. Down load the acupressure maps appended & contact on any day between 11.00 am-5.00 pm. For Free ONLINE Assistance-contact 91- 98493-67207 [email protected]
[iv]. Any suspected patients may have Dry Cough + itching throat, Fever above 100° Fahrenheit & difficult breathing + extreme fatigue; so that diagnosis is accurate to go in for coronavirus test in a designated diagnostic hospital/lab. However, even a symptomless coronavirus +ve healthy carrier can be identified with the aid of Acupressure techniques.
Organs affected in coronavirus victims-Lungs [30], Brain[1], Tonsils[6], Kidneys[26] & Liver[23], Thyroid [8].etc.

Palms & Soles: [3] Acupressure Maps-
https://lnkd.in/fbPrnRD
https://lnkd.in/fNw2tpB
https://lnkd.in/fYqBwmH
doctordhanbpathi
Replied to shetyerb comment 4 years ago
GE shetyerb! Much before China, Acupressure was dealt with by RIGVED. In Mahabharath, The grievously injured Bhishma was laid on a bed of roses comfortably. How ever, it was acupuncture. Actually, Acupressure is mother & acupuncture is the daughter. please, FOLLOW THE INSTRUCTIONS & CONTACT ME & to test if one has coronavirus.
ThanQ for your relevant query.
AkashPaul
4 years ago
Lockdown is expected to end on May 3, followed with some protocols. Workplaces and companies are expected to be opened to keep the economy stable. The entire world is continuously fighting to overcome the Corona Crisis. There are few safety measures protocols have been set for the companies and business places which need to be followed strictly. Awareness for employees have also been created while working in offices. Read More
doctordhanbpathi
Replied to AkashPaul comment 4 years ago
GE Akashpaul Ji! Please, see the useful videos & then react.
1. https://m.facebook.com/story.php?story_fbid=912659919239416&id=238227420016006. OR https://lnkd.in/eUDwgyn
2. https://www.homeoresearch.com/corona-homeopathy-medicine-for-prevention-and-cure/
Ramesh Popat
4 years ago
thousands of people to guide the govt as if it's not aware!
rameshsa2009
Replied to Ramesh Popat comment 4 years ago
Sir. Thank You. Experience is a great teacher as is vicarious learning. Feedback from all stakeholders can prove useful and has been so for many governments. Thank you
doctordhanbpathi
Replied to Ramesh Popat comment 4 years ago
GE Ramesh Popat Ji!!! the BJP Govt. is doing everything; but, silently. Please, see the useful videos & then react.
1. https://m.facebook.com/story.php?story_fbid=912659919239416&id=238227420016006. OR https://lnkd.in/eUDwgyn
2. https://www.homeoresearch.com/corona-homeopathy-medicine-for-prevention-and-cure/
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