11 MAY,2020 | MEDC
The government’s decision to extend the nationwide lockdown up to May 17 is understandable from the medical perspective. Covid-19 is spreading rapidly in India, and we cannot afford to go the way of Europe and America in this regard. However, the lockdown extension is increasing economic uncertainty. The government needs to be clearer about how it will manage the inevitable financial stress now engulfing both the public and private sectors. RBI has cut interest rates and flooded the system with liquidity, but money is not always reaching sectors where it is most needed. With the way things are unfolding, many MSMEs may not be able to survive for much longer. The government is doing well in containing the spread of the virus, and it is to be hoped that its actions on the economic and healthcare fronts complement each other. After all, it takes two to tango.
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