How To Find Money In Crisis
Ajay Vir Jakhar | Chairman, Bharat Krishak Samaj
The Indian Express
Jakhar writes that the Covid-19 crisis has caused an “unprecedented socio-economic calamity”. The question is not only about how much money the Reserve Bank of India can print, but also how to save and utilise the scarce resources rather than borrowing. Jakhar suggests that the government can take cues from India’s economic crisis in 1990 when the National Development Council’s Committee on Austerity recommended the freezing of dearness allowance, leave travel allowance, bonus, encashment of earned leave, etc., of government employees.
Don’t waste the oil crisis
Vikram S. Mehta | Chairman and senior fellow, Brookings India
The Indian Express
Mehta writes that the “low for longer” price outlook on oil, which refers to the prediction that oil prices are likely to witness a downward trend for the next 12 months, raises two issues for policy makers — what are the supply risks, and what can be done to maximise leverage the advantage of low prices? He suggests that India’s economic plans must consider the possibility that traditional oil supply routes could be disrupted. He argues that the current market conditions of low and volatile oil prices cannot be leveraged to national advantage unless traders are empowered and free from ‘bureaucratic control’, most importantly “from the three Cs ( CVC, CBI and CAG) in case their trade goes awry”.
Positioning panchayats as India’s agents of change
Anushree Sinha | Professor
Rajesh Jaiswal | Fellow at the National Council of Applied Economic Research
Hindustan Times
On the day, the prime minister spoke to panchayats across the country, Sinha and Jaiswal write that “intent and vision for panchayats to play a proactive role in nation-building are in place” and all that the country needs now is “efficient implementation”. The writers say that the current government has “gone all out” in improving the panchayat’s functioning. Sinha and Jaiswal analyse the various efforts made to strengthen the panchayat system. These efforts include the 2016 panchayat representatives resolve to strive for open-defecation-free villages, the 14th Finance Commission’s (FFC) recommendation for delivery of basic service for the people in villages to rural local bodies, encouraging elected representatives to work on solid waste management.
The COVID-19 paradox in South Asia
Deepak Nayyar | Emeritus Professor of Economics at JNU and former Vice Chancellor of the University of Delhi
The Hindu
Nayyar provides two explanations on why South Asia has fared better with fewer infections and deaths than many other parts of the world. Deepak Nayyar puts forward Covid-19 figures between US and India. Three months since the outbreak in both the countries, the US stands at 31.2 % and India at 0.75% of the world’s total Covid-19 cases. While India is at 0.33%, the US stands at 21.7% of the world’s total no of deaths.
First, Nayyar says that the reality could be worse than what the statistics suggest because testing has been nowhere near enough. However, Nayyar argues that even though improved stats may change numbers, they cannot “transform the asymmetry emerging from the above comparisons.” Second, Nayyar says that lockdowns have made the difference and India strangled its potential chains of community transmission, limiting the spread of the virus.
Leveraging the Covid crisis: How India can displace China in global manufacturing and supply chains
David M. Sloan | South Asia specialist for The Scowcroft Group
The Times of India
Sloan writes that the Covid-19 crisis has presented India with an opportunity to “expand its manufacturing base and play a larger role in revamped global supply chains”. Sloan provides five steps that India must take to seize this opportunity — PM Modi should emphasise India’s intention to adjust policies to compete aggressively for emerging investments while announcing a Make in Global India (MGI) initiative, he must appoint MGI special envoy as his personal representative to reach out to global companies, MGI must target Japanese and US companies, the government must immediately roll out policy initiative– ending tax terrorism, and introducing land acquisition reforms. David Sloan argues that the government must also stop ‘publicly belittling foriegn investors and investment agreements.’
India must address hunger on a war footing
G. Chandrashekhar | Policy commentator and agribusiness specialist
The Hindu Business Line
After the UN issued a warning that the coronavirus will push “an additional 130 million people” to the brink of starvation, Chandrashekhar suggests that India must be cognisant of this warning and must act swiftly. The population facing the risk of starvation is migrant labour. He writes that it is critical that relief and rehabilitation is “undertaken on a war footing”.
Tax relief for recovery
Praveen Williams | Partner, Indirect Tax, KPMG
Financial Express
The government has announced relief through relaxations in GST compliance. William suggests that “strong anti-profiteering mechanisms with sensitisation” of customers can ensure transfer of benefits. He predicts that the post pandemic economic scenario is likely to be “cost-sensitive”. He calls for the need of a “collaborative approach” so that everyone can move together to “un-tax” the coronavirus.
The need for better coordination between Centre and States amid crisis
Kazim Rizvi | Founding Director, The Dialogue
Ayush Tripathi | Policy research associate, The Dialogue
Mint
Rizvi and Tripathi write that the lack of coordination between central and state governments is making it difficult for “last mile connectors” to deliver essentials. They state that the central and state governments should act responsibly and work with local authorities to make sure that essential commodities reach customers. They suggest that a well coordinated system will ultimately benefit the citizens of this country for whom the governments are working for.
Today’s Editorials
The Indian Express: The newspaper comments on the Facebook-Jio deal and says that there are concerns despite the fact that both might benefit from this. These concerns could be related to market structure and its implications for consumer welfare, net neutrality and data privacy issues, it notes.
The Times of India: The daily welcomes the passing of ordinance for violence against doctors and healthcare workers. However, it says, we need a systematic approach to address these issues better. It stems from dilution of faith in the medical profession as well as a general atmosphere of populist politics that looks down on experts, while favouring mob rule, says TOI.