'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.
'Finance Minister Nirmala Sitharaman on Friday said an economic package for the coronavirus-hit sectors will be announced "as soon as possible". The minister, however, did not give any timeline by when the package will be unveiled... The finance minister also said the task force announced by Prime Minister Narendra Modi is yet to be constituted... Asked about relief measures for the financial sector, Ms Sitharaman said, "SEBI has come up with a list of regulations which will also sort of keep the markets a bit stable. But I can't say what I am doing for the markets.
'While the world economy has taken some beating after the outbreak of coronavirus or COVID-19, Minister of State for Finance Anurag Singh Thakur on Tuesday pointed out that the latest data "do not suggest any adverse impact on the economy" after the outbreak of COVID-19. "Additionally, a positive impact on India's economy may arise from a decline in global oil prices triggered by the outbreak of COVID-19," Thakur said in reply to a query raised by Rajya Sabha member Vaiko...'
'Once crowded with customers throughout the day, Dine Hill, a popular restaurant in Hyderabad, now sees only empty tables. In the span of a few weeks, as cases of coronavirus have started increasing in India and shutdown orders have been issued, the restaurant has seen a 40% fall in business in just a few weeks. And it’s not just Dine Hill. Restaurants across the country have seen a drastic decline in customers after the government advised people against public gatherings to contain the spread of COVID-19...'
'...Kalla Ram is 68. He lives in a one-bedroom apartment with his three sons in Delhi. There are hundreds of others who live like him in close quarters, no more than a few feet away. He leaves home early every morning on his rickshaw, and ferries passengers to and fro, interacting with at least two dozen of them and earning about Rs400-500 per day ($5.40-6.75). He’s the sole breadwinner in his household, even supporting extended family hundreds of miles away in Bhopal, the capital of Madhya Pradesh in central India, where he grew up.
'Vadodara Smart City Development Company, a Special Purpose Vehicle (SPV) of the Vadodara Municipal Corporation (VMC), withdrew Rs 265 crore from Yes Bank a day before the Reserve Bank imposed a moratorium, an official said on Friday. On Thursday, the RBI restricted withdrawals from Yes Bank to Rs 50,000 per depositor due to the private lender's precarious financial situation...'
