The pandemic is on a rampage though its speed has been halted. As Covid-19 runs on a flat curve and as recovery rates improve, another human tragedy unfolds on the streets of the country.
The migrant labourers, the backbone of the economy, are suddenly out of the factories and construction sites and left on the streets. Hunger and hopelessness loom as a bigger problem than Covid-19. Factories shut, farmland in pause and trade and commerce completely banned. The nation of 130 crore people has been surviving on essentials for last two months. But both people and Governments are getting restive. Along with Jeevan, Jeevika also needs to be protected.
The handling of the crisis by India led by the no-nonsense PM Narendra ModiJi has been lauded by the world. The crisis has been managed well which was perhaps beyond the wildest expectations of the world at large. But it happened and now, the world takes note of the leadership of India.
Coming to the other crisis of the economy, the last five years’ work of Modi Government in the area of creating an economic infrastructure and a safety net for the vulnerable paid dividends handsomely during the crisis. In the largest ever economic boost, Modi Ji has announced a package of Rs 20 lakh crore encompassing all aspects of the economy. If carried out diligently, it will be the mother of all reforms as it is based on the principle of Antodaya and works on the strategy of insure, incentivize and invest. Lockdown 4.0 will in fact be reboot 1.0. Let me explain.
As soon as the crisis hit, the Government started constituting task forces for various areas. This includes disaster management, pandemic management, economic crisis handling and coordinating with State Governments. For the first time in the history of this young republic, a complete synergy was visible between the State and the Centre. The RBI was prompt in announcing a slew of measures to keep the economy going but to put it on a sleepmode to be revived later. It worked. The Govt came up with a package of ? 1.7 lakh crore as a special immediate relief to insure the most vulnerable such as farmers, labourers, women, old and disabled. The infrastructure of JAM (Jandhan, Aadhar, Mobile) created with much effort came in handy as the relief was sent direct to the people, be it pension or cooking gas. No time loss, no loss on the way. Zero pilferage.
Then came the cases of the migrant laborers, street vendors, tribals and the micro enterprises, self-help groups and others who invest a little and earn a little every day to live. Special funds have been created for all of them and credits have been extended without collaterals and repayment have been deferred for three months. They would be able to restart their business once the lockdown is lifted. The MSMEs which employ bulk of the skilled workforce have been hit hard and the new package has a transformative agenda for them. It not only changed the definition in order to make them grow but have provided Rs 3 lakh crore cheap credit on very nominal terms along with easing of labour laws and tax incentives. The Government would pay back all their dues within three months.
The RBI credit and monetary policy of around Rs 6 lakh crore is aimed at creating enough liquidity in the market in order to take care of working capital needs of the big businesses as well as create scope for growth. The earlier cut of corporate tax rates and slew of other measures announced in the budget will make doing business easy. As we write, the details of the measures to reboot are being fleshed out every day. After all the tranches are disclosed, no doubt, this Rs 20 lakh crore package will not only restart the economy but also propel it on a higher growth path.
Every crisis is also an opportunity and it’s the wise who convert a crisis into an opportunity. As of now, it looks like the underbelly of India is exposed. But so also its strength and resilience. We are now capable of managing large scale crisis on our own and help the world manage it. We have shown remarkable discipline and restraint as a nation and it is unbelievable considering that we are 130 crore and densely packed. This was possible due to hard work of the last five years where the Government has created lasting institutional mechanism and delivery structures to protect the vulnerable and created conducive environment for doing business. The governing system has become nimble and quick to respond and is attuned to the need irrespective of politics. People first, people last and development in the middle.
As usual, the doubters ask where the money would come from. Will Modi Ji do some creative accounting and produce money out of nowhere? Well, the answer lies in the intention of the Government of the day. If there is a will there is a way. We have a bumper crop harvest. The Forex reserve is at all-time high. During the entire lockdown period of two months, there was no supply disruptions of essentials, no food shortage, no power cut, no water shortages and no major breach of law and order. Isn’t it an indication of the strong fundamentals of the economy and the strong resolve of the Government? What remains is the number crunching. That we should leave to economists and policy experts.
For us lay mortals, Modi is there to take care of all of us and the country.
(Dr Samantsinghar is secretary, State BJP)