The government of India is taking steps to reboot the economy, keeping in mind the challenges offsetting the gains of the lockdown. Partial Lockdown lift may bring some relief along with the problems.
Relief in Partial Lockdown
PM Modi extended the lockdown to May 3rd as the new clusters of infections continued to emerge across the country. However, he mentioned easing the lockdown according to the classification of the district based on the number increase in cases. Ministry of Home Affairs released a notification allowing private industries and industrial establishments to operate in rural areas. These must be outside the limits of municipal corporations and municipalities. Also, it has allowed the functioning of industrial units in special economic zones, export-oriented units, industrial estates.
Major Automakers Yet to Restart Production
Despite the lockdown, major automakers like Maruti and Hyundai are yet to restart production. Many automaking factories remain closed during lockdown due to the unavailability of components. Maruti Suzuki’s Chairman RC Bhargava told the press that the management is looking into the requirements for restarting the company.
While Honda is reworking all processes of social distancing and other measures to restart its plant in Rajasthan, Toyota Kirloskar is waiting for smoothening of the supply chain. Experts have pointed out the fact that it makes no sense to start the production when the showrooms are closed.
Challenges
While hit to a specific sector has been severe, no sector remained immune to the effects of the pandemic. However, the Indian Public healthcare system has made advancements. As a result, the government is planning to implement a graded exit plan based on the extent of infections.
Consequently, it will proceed, starting with lifting the restriction on the least affected district-wise area. However, even with extra preparation from government, an exponential increase in the number of cases can offset the gains. Hence, social distancing and travel restriction may remain.
Several States Delay Relaxations
Delhi Government has announced no relief till April 27. Also, the Punjab government has withdrawn its relaxations given to industry and reported that the curfew would remain till May 3 in the state. While Telangana has extended lockdown till May 7, Haryana has provided relaxations to some industries but only through passes issued by using the SARAL portal. Also, West Bengal has given some relief to the IT sector and the jute industry in the state, provided use of only 25% and 15% workforce.
In all, if the government manages to perform well on the health front, the performance on the economic side will determine the success.