FIVE SUGGESTIVE GOVT INITIATIVES TO REVAMP INDIAN ECONOMY FROM COVID 19

The History repeats. Yes the history of 1918 pandemic of Spanish flu which affected 500 million people across the globe killing 50 million people worldwide is repeated in the form of COVID-19. 

The severity of COVID-19 is tremendous such that it has affected 40 lakh people across the globe till today and the number is increasing day by day. The disease has not only disturbed the whole life system of the people but has also turned world economy upside down. More than 200 countries affected by COVID-19 are under economic distress and worried about the recovery. As far as India is concerned, economy is indeed affected as International rating agency Fitch has slashed India’s GDP growth rate projections for 2020-21 to 0.8 per cent.

But question is how can government revamp the crashing economy?

What government can do is at macro level by rehabilitating all economically divided groups of people namely Poor, Middle Class & Rich people plus all types of Small, Medium & Big enterprises along with all types of service sectors. What citizens can do is try to sustain throughout this rough economic situation with patience and positivity to bounce back.

1. Universal Basic Income via DBT

Government can follow the concept of UBI which is Universal Basic Income followed by US & Germany. Government can pay universal basic income stipend for livelihood of daily wage workers as they live on informal economy spending daily income for necessities. Government can justify UBI by using DBT Direct Bank Transfer to such workers using cess fund which government can utilize this way. There are 3.5 crore such workers in India who depend on daily income to demand basic necessities. They will boost economy if they receive basic income by demanding FMCG.

2. Interest Free Loans to Small Business

Small Business running shops actually run economy. Government can pour cash in them by giving grants and funds to them. Interest free loans can be given to them instead of current offer of three months wave off of interest. Just as Spain has 100 billion Euros loan guarantee which means only expenses of unpaid loans have to be paid. Banks can take this risk to save credit line. Interest free loans offered to small business owners can flourish their business and that makes a great impact on economy. If 10% to 20% does not pay back loans, this loss can be beard against the risk of saving whole economy

3. Wave off Electricity Bills for Commercial Business

Big commercial business always depends on working capital for management of their operations. They can save huge funds if electricity bills are waved off for them. 25 to 30% of their expense can be saved and can be utilised effectively.

4. Involvement of Private Sector

Government alone cannot fight this situation. Private sector always tends to contribute to help government run economy successfully. In current situation where there is shortage of doctors, hospitals and equipments, government can use services of private sector as they are have enhanced speed, scale, bandwidth, manpower and logistics. Doctors in India are still using used masks as there is a shortage of the same. Alcohol manufacturing companies can be asked to make sanitizers, PVC manufacturing companies can be asked to manufacture protective gear. This is speed up the process of recovery path of Indian Economy

5. Partner with religious Institutions

Private institutions like ISKON are providing services and reach out millions of people to provide food and basic necessities. According to news in Business Standard, due to COVID 19 lockdown, ISKON pledge to feed more than 2 lakh people daily. In Delhi, people were moving out due to non availability of basic necessities but ISKON service providers helped stranded people to feed them on daily basis. Similar services are provided by ‘LANGARS’ and they are feeding lakhs of people across India.

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