Gradual Resumption - A DPIIT Suggestion

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,
  1. Have a single entry point for workers,
  2. Have a space for social distancing and
  3. 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