Redefining strategy to revive the Indian economy in aftermath of coronavirus

According to Nobel laureate Abhijit Banarjee, a stimulus package large enough to increase spending and boost demand is needed. The revival of the economy will come from putting money in people's hands and the revival of demand. The Church in India is also very concerned about society and has done its part in collaboration with the authorities to reach out to the poor.

Cochin (AsiaNews) - Redefining the business strategy in the post covid era is the need of the hour, according to a group of experts who participated in a Business Webinar on 6th May from the different corners in India.   

The webinar was conducted by the most circulated daily in India – Malayala Manorama, with the participation of entrepreneurs, bankers, economists, investment experts.  The event was organized to analyze the current scenario of small and medium scale industries (MSME) in India and to identify the novel plans for reinforcing those industrial sectors who are mostly affected due to the lockdown.  

 “Recently The Reserve bank of India had issued guidelines to the banks for supporting small and medium scale industries.  Unfortunately, not even the entrepreneurs of small size industries are aware of those guidelines and the Industry department of the state has to disseminate the facilities created by the banks”, said the moderator of the webinar Mr. Muhammad Hanish, Secretary of Kerala State Industry. 

According to Mr. T S Chandran, an investment trainer Kerala is one of the most vulnerable state in depending all other states and countries for the raw materials as well as the guest workers in production sector.  Due to the scarsity of both imported raw materials and the personnel, the industrial sector in the state has to redefine its conventional policy by adopting other measures to resurge from the fall of the industry.  

Mr. Kochausep Chittilappaly, the founder of V-Guard Industries, major electrical appliances manufacturing company proposes that banks shall not limit with moratorium for a short term period, but even the interest rebate has to applied for the industrialists during lockdown period.  

The people must have money in hand to vibrate the economy of the country.  India, the country of haves and have nots, creates an abyss between the rich and the poor.  Covid lockdown will affect mostly the poor and the middle class families.  India needs, suggested two days’ back Nobel laureate Abhijit Banarjee in an interview, large enough stimulus package to increase spending and revive demand to face covid challenge.  From putting money in people’s hands to reviving demand will move the economy. 

India’s covid package was just limited to 1% of GDP whereas US has gone for 10% of GDP, Japan and the Europe have also adopted bigger measures to revive its economy.”.  According to Banerjee, giving money in the hands of everybody, so that they can buy in stores or they they buy consumer goods, thus spending is the easiest way to move the economy.  Because then the MSME people get money and they spend it.

In the webinar session, MSME President in Kerala, informed that more than then thousand small scale industry unit have been closed since more than 40 days and it will be difficult for many of these companies to reopen after the lockdown.  At the same time, the Goverment has warned all employers to pay the salary to all the employees in spite of stopped activities.   The central government in the initial packages have not offered anything to the small and medium scale industries.  

"Government of India, Prime Minister's Office and the department of economic affairs are already working on a package which includes not only MSME but also the industry. All sectors of the Indian industry will be assisted in the upcoming comprehensive package.” said Giridhar Aramane, secretary in the ministry of road transport and Highways.  The whole industry has its eye on the upcoming package from the finance minister Nirmala Sitharam.

Church in India also is very much concern about the society and has been doing its part in cooperation with authorities to reach out to the poor.  Card. Oswald Gracias, President of Catholic Bishops Conference of India, has written to Prime Minister Narendra Modi, extending the support of Catholic Church in India in different spheres of Covid affected society. The cardinal urged churches not to terminate any staff and ensure that salaries are paid, even if they do not work during the emergency.  Across India various catholic parishes initiated the projects to reach the people, distributing small amount of money, to survive during lock down period