Why in News?
Department for Promotion of Industry & Internal Trade (DPIIT) has suggested opening a list of industries during nationwide lockdown.
What did the DPIIT suggest?
- DPIIT has suggested that large manufacturing units in sectors such as automobile, electronics, and textile can be allowed to function.
- It suggested that these units could function at a 20-25% employee capacity in a single shift.
- It has also suggested that the units should,
- Have a single entry point for workers,
- Have a space for social distancing and
- Sanitise their premises regularly.
- It recommended free movement of workers and vehicles in some sectors.
- Additionally, DPIIT is in favour of reopening certain repair units and restarting construction activity with adequate safeguards.
What is the need for selectively resuming economic activity?
- During lockdown, the government has restricted movement.
- This, in turn, has affected the production and supplies.
- The nationwide lockdown have induced a great deal of hardship for a large number of households and businesses.
- Indian companies may end up losing export opportunities due to the lack of clarity on production.
What could the government do?
- Easing restrictions on movement will help rebuild supply chains and avoid potential shortages.
- It is sensible to start opening up the manufacturing sector to the extent possible to contain the overall economic damage.
- This will also help bring back at least part of the labour force to work and address the issue of unemployment to some extent.
- Restarting activity will help address the cash-flow problem of firms to some extent.
- It is significant to avoid coordination problems between different organs of the government.
- The firms might need to make changes in manufacturing processes.
How could economic recovery achieved?
- India needs to scale up testing in a big way.
- This will help identify hotspots and limit the spread of Covid-19.
- Increased testing will give reliable data for policy decisions and help ease the lockdown in the coming weeks.
- Greater clarity in terms of Covid-19 containment will aid economic recovery.
Source: Business Standard
