As the number of confirmed positive cases of COVID-19 in the country reached 10,815, the Prime Minister of India Narendra Modi announced that the ongoing national lockdown would be extended till 3rd May in order to flatten the increasing curve and contain the virus. He also promised that areas showing promising numbers would be allowed some amount of relaxation to allow econoic activites. India Incorporated supported this decision yet held certain reservations regarding the economic condition of the country after the lockdown.
“Support of lockdown”
“Extension of lockdown is a well thought out and much-needed plan in wake of the threats posed by COVID-19. Prime Minister’s decision to monitor the effectiveness of implementation and then gradually offer relaxations post 20 April must be welcomed,” said Naveen Jindal, Chairman, Jindal Steel & Power Limited.
“Migrant Exodus raises a lot of concern”
Inda Inc has earlier stated that the extension was necessary to control the humanitarian crisis but needs to be supported by stimulus packages by the Government to provide some relief to the economy once the lockdown is lifted as the Indian economy will be hit very hard by the production stagnation.
One of the most major issues caused by the lockdown was the migrant exodus that is
continuing to take place as many daily wage workers who shifted to the urban sectors for work are left jobless and starving. Many have retaliated against the extension as several migrant workers gathered outside a police station after the extension announcement in Mumbai in spite of the comprehensive package of Rs 1.7 Lakh Crores announced by the Finance Minister Nirmala Sitharaman last month. Relaxation of certain sectors aims towards easing the pressure on the vulnerable classes.
“Employment and revenue estimates”
According to the estimates by the Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian economy will suffer a loss of almost Rs 40,000 crores daily and has already lost an estimated Rs 7 lakh crore to Rs 8 lakh crores in the past 21 days. The FICCI report also highlighted an increase in the unemployment rate of 28 percent as well as a risk of almost 40 million jobs all over the country during the period between April and September. FICCI President Sangita Reddy pointed out that the Prime Minister’s directions on a phased lifting of the lockdown would reduce the economic pressure and ensure that there are no shortages during and after the lockdown period.
“Different Industries laud the decision”
CII Director General Chandrajit Banerjee said the COVID-19 curve trajectory as of now required a fitting containment response and Prime Minister’s decision for continuation of the lockdown is necessary to avert a larger humanitarian crisis. “Prime Minister has also provided guidance on exit from the lockdown after 20 April which helps the industry plan better.
“The extension gives the government adequate preparation time to organize an orderly and safe restart of the economy as and when health conditions permit. Industry too can devise its strategies for commencing operations accordingly during this extension period,” Mr.Banerjee added.
IT industry Nasscom also spoke out in favor of the extension as an important strategy to contain the spread of the pandemic. “We are also happy to note the relaxation of restrictions in green zones and hope the government will also announce the economic stimulus packages soon so that we can start focusing on rebuilding the economy. Saving lives and livelihood has to go hand in hand, ” it added.
“Staggered Exit to protect the economy”
The sectors of the economy expect a stimulus package to assist a smooth transition in the post lockdown period and ensure economic readiness to tackle the world recession. Suggestions of FICCI pointed towards a staggered exit strategy that would allow economic activity as well as social distancing and containment measures to ensure that the virus does not continue to spread.
