He has, however, announced a Economic Revival Committee that will make recommendations to the government on how the economy can be revived once the lockdown is lifted. We are not certain the the lockdown will go on till the end of the month, but there could be some relaxations.
None of this is going to be music to the ears of the business community in the State that has already made representations to the government on the current crisis seeking support – economic and also relaxations on bill payemnts of services utlised or rather not utilised during the lockdown period. Almost all economic activity has sought some form of support. From big industry players to Micro Small and Medium Enterprises (MSME) to the ubiquitous motorcycle pilots, all are staring at an uncertain future. The Goa State Industries Association (GSIA) has met the CM with a list of items they would like taken care of, including the ‘rationalisation’ of the electricity bills, that would help revive industry and economic activity in the State. While they were heard by the Chief Minister, his statement the next day on the reduced possibility of support, would have further deepened the worry lines on their foreheads.
Across sectors, industry is expected to suffer from the loss of business. The industry association is of the view that the government has to work together with them for business to emerge from the crisis and take the economy back to where it was earlier. There is no faulting this reasoning. Yet, it is clear that it will take time – weeks and perhaps even months – before the economy can get back on the rails, and even then it won’t be moving along smoothly. Clearly, the government will have to step in at some point of time – even if it doesn’t want to do so now – with an economic package to bail out the industry and keep it out of the red.
From current projections, it does appear as if the economy has a very steep uphill climb. Estimates suggest that in just the first two weeks of the lockdown, 50 million persons in India have already lost their jobs. This is a worrisome statistic and the trend needs to be checked. The only manner in which this can be reversed is if the government steps in to raise the confidence of the business community that it will stand alongside it through the crisis. Countries across the world have announced measures to shore up their economies. India too needs to do the same, and Goa cannot refuse relief to the sectors that have been hit by the pandemic.
It is important for the government to be proactive on the issue. Just as it acted in imposing the lockdown to control the spread of the virus, it has to map out the plan for the economic revival. That map has to be practical and not one that is theoretically sound, but difficult to implement. Some relief to the business community will be the fact that the Economic Revival Committee is composed of industry leaders from across sectors, and not peopled by politicians and bureaucrats. The latter take a different perspective of the issue, that is not always practical. But, even the recommendations of the committee will take time. Industry has already voiced that by the time relief comes, micro and small units could close down under financial pressure. We are running against time.
