Economy in the times of Covid-19: Can resuming manufacturing help?

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Prime Minister Narendra Modi might resume manufacturing amid Covid-19 in a bid to resuscitate the staggering Indian economy, sources state.

As Covid-19 pandemic induces a global economic slowdown, the economic condition of India has received a strong blow. Indian economy was staggering already, and the lockdown due to coronavirus has only made the matters worse.

Stuck amid this fix, Prime Minister Narendra Modi might allow manufacturing units to resume their operations, sources suggest. However, this leads to another big question: Can resuming manufacturing help the country recuperate from the economic crisis?

Several media reports suggest that the PM has directed some ministries to come up with plans to reopen some crucial industries, since the complete lockdown has not only degraded the economic standing of the country, but has also hit the livelihoods of the poor.

The 21-day lockdown declared by the government to curb the spread of coronavirus in the country resulted in a large number of daily wage workers and labourers losing their jobs in larger cities. This further led to their exodus towards their native places, thus increasing the risk of spreading the virus in the hinterlands.

While the Indian economy was already struggling way before the virus reached India, the condition might worsen if all economic activities are brought to a standstill amid the lockdown. This, in turn, could lead unemployment to rise to record levels, warn economists.

In light of these circumstances, a partial resumption in the operations of various industries could help revive the dwindling economy, while allowing the government to continue the prevention of Covid-19.

According to economy experts, restrictions over the functioning of industries must, however, be lifted only after ensuring that the preventive measures pertaining to coronavirus spread are being adhered to.

Social distancing is the most crucial aspect of curbing the damage that could be incurred by the virus not only on the economy but on polity as well. Sources state that the government might allow only those establishments which can provide accommodation and food to its workers, so as to prevent the employees from becoming a carrier and ending up infecting their family members and neighbours.

The final call, though, rests with PM Narendra Modi, who is all set to address the nation tomorrow, at 10 am, to give the people clarity about whether or not the lockdown is going to be extended, and if yes, for how long.

 

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