'The much touted Rs. 20 lakh crore relief package announced by Prime Minister Modi and detailed by the Union finance minister has turned out not to be a relief package at all. Instead of offering a fiscal stimulus, she has urged enterprises of all sizes to borrow from banks to tide over the immediate crisis. To millions of poor people staring at prolonged starvation, all she has offered is an additional allocation for the MNREGA programme.
'What has the BJP-led government of Narendra Modi done since 2014 that does not suggest it wishes to destroy the informal economy, also known as the unorganised sector? While the ‘unorganised’ informal economy now accounts for roughly half of India’s GDP – and is shrinking relative to the share of the private and public corporate sector – it accounts for 80-90 % of the workforce. It includes agriculture, despite the fact that land titles are registered, except for plantations, which are regarded as ‘organised’ despite their unravelling workforces.
'Non-banking finance companies, beware. India has a “non-banking finance minister” now. Nirmala Sitharaman, Union finance minister and the official town crier for Prime Minister Narendra Modi’s “Rs 20 lakh crore” package, has been announcing loan after loan, which is being passed off as evidence of the government’s generosity or benevolence to tide the country over the Covid crisis... However, loans account for at least Rs 6.3 lakh crore of the Rs 10.7 lakh crore worth of announcements made in the first three days.
'Around 31% of domestic apparel factories might close and about 25 lakh workers could lose jobs as a result of the ongoing nationwide lockdown imposed to slow down the spread of COVID-19 pandemic, according to a survey conducted by the Clothing Manufacturers Association of India (CMAI). “MSMEs see no future and want to shut operations. Considering that close to 8 million people are employed by the domestic apparel industry, almost 2.5 million workers will be out of jobs,” stated CMAI.
'Cashew nut harvesting (carried out between March and May) has come to a standstill across growing regions of Dakshina Kannada, Udupi, Uttara Kannada, and Shivamogga districts in Karnataka and other states with the enforcement of the nationwide lockdown to fight COVID-19. In addition to this, the closure of processing units and retail markets has resulted in the price crash for raw nuts. Currently, the raw nut prices (ex-farmgate) have crashed up to 45% to touch Rs 70 per kg from Rs 125 per kg during the last year’s season.
'The government recently announced Rs 1.7 lakh crore economic package to help the poor deal with the impact of coronavirus and a 21-day nationwide lockdown imposed to contain the spread of the disease. Experts think that the complete lockdown may deepen India’s economic slowdown. In an interview with Outlook’s Rajat Mishra, development economist, and professor at Jawaharlal Nehru University (JNU) Jayati Ghosh explains how the COVID-19 crisis will impact the Indian economy and what the government needs to do. Excerpts...'
'India has had a Prime Minister’s National Relief Fund (PMNRF) since 1948. In recent years, that fund has emerged as the primary focal point for the mobilisation of public donations in the wake of natural disasters like floods and earthquakes. On March 24, when Prime Minister Narendra Modi announced a national lockdown, the Union home ministry issued a notification declaring the COVID-19 epidemic in India to be a ‘natural disaster’ and invoking the provisions of the National Disaster Management Act to give the government coercive powers.
'The lockdown across 30 states and Union Territories to prevent the spread of the coronavirus has brought economic activity to a virtual halt. Transportation and logistics system are struggling to get past checkpoints amid varying interpretations across state jurisdictions of what comprises essential services. The country’s top manufacturing and services hubs are closing offices amid the restrictions. Construction activity across the major metropolitan regions is crimping to a stop...'
'Urban India is staring at a possible spike in food prices and scarcity of fruits and vegetables in the coming days, as transport curbs and pandemic fears open up a wide chasm between the farm and the fork. Major crop-growing states like Maharashtra, Madhya Pradesh, Rajasthan, Karnataka and Uttar Pradesh have imposed lockdowns or curfews in a desperate attempt to curb the spread of the novel coronavirus. Inter-state goods transport is at risk as well, as truck drivers are harassed at borders, and casual labourers who sort, grade and load harvests are in short supply.
'As shops and establishments prepared to shut down following a Maharashtra government order that all private businesses and companies must remain closed from Saturday until March 31, an exodus began in Mumbai and Pune with tens of thousands of workers in the unorganised sector, as well as auto-rickshaw and taxi drivers, thronging railway ticket counters to return to their hometowns, mostly in Uttar Pradesh and Bihar.
