Page 28 - August-2020-Issue

ARTICLE

monetary loss every day we 2020, now crippled again.
are doing away with. COVID-19 The government has left Automobile sector is amongst
is eating away a meal of no stone unturned to do the heavily burnt lot, with not
whopping Rs.40,000 cr ev- just drastic cut in employment
eryday from the India’s eco- whatever best possible to due to low sales, but also due to
nomic platter. But I feel, steel curb this virus and stabilize the lowered spending capacity
will have better days in India pre and post lockdown.
ahead. Manufacturing here will the economy. Banks will Recovery looks to start with ser-
increase because it will be a now have more genuine vices, moving to manufacturing.
more preferred destination than First thing would be to organise
China for the world market. borrowers than NPA’s. Aim the supply chain. With slow con-
Impact is worse on public is to keep financial systems sumption post lockdown, it will
sector enterprises undeniably, start taking shape. A tougher
because of the better labour sound, so that it can flow aspect is, when the production
law compliance, besides the across the pyramid, from will resume, how will we replace
motto being social welfare along the migrant labourers who have
with profit compared to private top to lowest level. RBI gone back? After suffering worse,
sector, where the sole motto is Governor has cut the reverse many left to die, treading to their
profit. Tourism, which accounts homes post countless efforts, will
for about 10% of India’s GDP repo rate to 3.75% from they return this easy and quick? It
is starving. Even in the private 4%, also Rs. 50,000 crore is depressing, but a major portion
sector or individual businesses, of people won’t return to metros
be it hospitality, retail sector, LTRO has been announced, in search of work. No wonder,
tourism, all are shattered. our finance minister has many industries may shift to
Hospitality is about to lose smaller pockets soon.
Rs.30,000 crore revenue, 15-20 assured every possible relief The government has left no
lac job loss, how will we come but since we are a hundred stone unturned to do whatever
up with all this? Hospitality best possible to curb this virus
will witness continued decline, million plus population, the and stabilize the economy. Banks
since people’s will, will decline will now have more genuine bor-
to tour and travel, not just question is for how long can rowers than NPA’s. Aim is to
because of the recent fear fall, we sustain? How much can keep financial systems sound,
but also because many have had so that it can flow across the
a long holiday break at home the private players, public pyramid, from top to lowest
and many will have sheer stress sector undertakings and level. RBI Governor has cut
on resources. For the retail in- the reverse repo rate to 3.75%
dustry, be it jewellery or cloth- the government uphold from 4%, also Rs. 50,000 crore
ing, March, April, May were the in a scenario when no one LTRO has been announced, our
main seasons. The entire wed- finance minister has assured
ding season of about Rs. 10000 knows, how long will it take every possible relief but since
crore has failed for the textile to contain and what impact we are a hundred million plus
market. The stocks were piled population, the question is for
up for the wedding season, await- it will make? how long can we sustain? How
ing hordes of customers, not much can the private players,
knowing a complete shutdown. public sector undertakings and
Economic shock means millions time when the nation needs to the government uphold in a
of losses at every individual save, on every resource. Globally, scenario when no one knows,
level. Think of the billions of stock markets have crashed how long will it take to contain
daily wagers, small entrepre- by a third or more, real estate and what impact it will make?
neurs, or self employed lot, on its last legs was hoping Especially when people are
service agencies. This is the to stand back on its feet in not mending their ways, a large

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28 KaleidOscope May, 2020KaleidOscope May, 2020