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13 JUL,2020 | MEDC
Shutting down the economy is always easier than restarting it. Factories, warehouses, suppliers and customers are now spread out over a national collage of red, orange and green containment zones implying a fundamental physical disconnect between demand and supply lines. Pandemics tend to create a fear psychosis, which does more damage to the economy than any tangible factor. Under the circumstances, revival of the financial sector has to become a policy priority. Banks and NBFCs need to work together in the lending space to ensure a relatively smooth economic restoration. Under the new industrial classification norms, almost 99% of Indian enterprises come under the MSME category. Unless the MSME and agricultural sector pick up, restarting the economy will be difficult. Unlocking the economy also does not wish away the fact that the health crisis remains a challenge. With the ground realities changing on an almost daily basis, only time will tell how normal the new normal is, both from the health as well as the economic perspective.
*Photo Credit: Google
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Interactive Meeting with Mr. Jaykumar Rawal Hon'ble Minister for Tourism & Employment Guarantee Scheme Govt. of Maharashtra