How is India going to open up the economy and which parts of the economy are critical to open up and what is the sequence? Mr Raghuram Rajan says as we turn from trying to bend the curve on infections and preventing hospitals and medical facilities from being overwhelmed. We have to start thinking about restarting the livelihood of people.
It’s easy to have a lock-down announced but it’s unsustainable for the economy. So sequencing has to be figured out firstly to the places where you can maintain distance, not just likely in the workplace but in the to and fro that means where people have a private means of transportation.
There is a lot to be done on the terms of the structure and sequencing and in that case if new fresh cases arise how to isolate them as quickly as possible without having a lock-down. If there is a cyclic lock-down that means once you open but later you are forced to shut down, it would be devastating as people would lack trust.
Comparing to other countries who are facing this crisis majorly, India lacks the capacity to test in lakhs per day and have to prioritize if considering reopening the economy. Economist Raghuram Rajan suggests sampling method to test the people so that we could speed up the process as we cannot wait till that facility is made available assuming it would be late.
A real impact is going to appear for fighting the virus right now and 3-4 months later the consequences of fighting the virus and balancing both is equally important. Capacities and resources are limited including the financial and fiscal resources for which prioritization is required. So that we can keep the economy together as we reopen, we can walk it off.
Discussing priorities, keeping people healthy and safe, food is extremely important so to make sure the distribution system supplies all over. Basically, break the norms but with budgetary limit is going to help tackle this pandemic.
AGRICULTURAL SECTOR AND MIGRANT WORKERS
We have to take a call on the schemes and make people in need aware of this realization. Through pension schemes, MNREGA roles, the fund required to help the poor would be about 65000 crores which can be supported by Nation’s GDP, states Rajan.
There are no benefits or advantages for India because these kinds of incidents rarely have any positive effects for any country but there are ways to grab opportunities and take advantage if rethinking is done upon the global scenario.