ILANOMICS

Why migrant workers are starting to return to cities & how this can revive economy faster

Resumption of economic activity can lead to a larger number of people falling ill than during the lockdown, and govt needs to make policy based on Indian data.
Many passengers came to know that flights had been cancelled after reaching airports, because different states made different rules (representational image) | Photo: ANI

One nation, many rules — how multiple authorities & chaos they create hurts Indian economy

We saw how confusion in rules about air travel affected passengers. Agencies and authorities should give people adequate notice and allow them to plan.
Finance Minister Nirmala Sitharaman | Photo: Suraj Singh Bisht | ThePrint

The 3 big unknowns that have forced Nirmala Sitharaman to be prudent with economic package

The future of Covid-19 in India and its impact on the economy and govt revenues is unknown, so it’s better not to exhaust all options by May.
Representational image for MGNREGA | Photo: Commons

Is Modi govt trying to decongest Indian cities? Its economic package gives that impression

Economic package assumes people will go back to villages, and rural incomes need to be boosted. Modi govt seems to be trying to give them employment there.
Finance Minister Nirmala Sitharaman announcing details of the Modi govt's Rs 20 lakh crore economic package Wednesday | Photo: ANI

Modi govt’s Rs 20 lakh crore package is a missed opportunity for MSME credit reform

Govt’s 100% sovereign guarantee for uncollateralised MSME loans will encourage borrowers to never pay back, discourage banks from lending to them in future.
Farmers put wheat crop through a crusher in Uttar Pradesh | Photo: Samyak Pandey | ThePrint

Why India’s rural economy stands to gain after the lockdown is lifted

Govt & individual behaviours have changed to cope with Covid, and economic behaviour will change too. Agriculture & rural industry could be India’s strength.
Prime Minister Narendra Modi, Finance Minister Nirmala Sitharaman and Commerce Minister Piyush Goyal at a meeting to boost investment Thursday | Photo: ANI

Modi govt is being sensible by not announcing a large fiscal package to help revive economy

Where will money for such a package come from? Tax revenue & domestic borrowing could fall this year, and India will need to be risk-free to borrow from abroad.
Indian banknotes (representational image) | File photo: Bloomberg

With lockdown exit uncertain, ‘inflation tax’ can help govt care for those without savings

Printing money, a last resort in financing the deficit, can help move resources from those with some existing savings to those with no existing savings.
India has the youngest working population in the world, which will be an asset as the lockdown is opened (representational image) | Photo: ANI

India’s young people can be the corona-warriors who’ll put the economy back on track

As the lockdown is eased, the elderly will need to be protected. But India’s young working population, the largest in the world, will be a great asset.
Representational image for Covid-19 swab testing | Photo: ANI

Pay private labs to test for Covid-19, it’s the best way to start India’s economic recovery

As India prepares exit strategy from lockdown, it must heed Nobel laureate Paul Romer’s words — spending a small percentage of GDP on testing can get big gains.
The coronavirus pandemic is expected to cause both demand and supply shocks in the global economy (representational image) | Photo: Manisha Mondal | ThePrint

How India can buck the trend of global recession caused by coronavirus

Social distancing is our best bet against coronavirus, but will sharpen the impact on the world economy. India is better placed than many developing countries.
Ila Patnaik
Ila Patnaik is an economist and a professor at the National Institute of Public Finance and Policy.

Ila Patnaik & Shubho Roy