PATNA: Even as the government has announced certain relaxations while extending the lockdown till May 17, experts are of the view that the move would be of little help as far as revival of economic activities is concerned.
Economist and member secretary of Patna-based Asian Development Research Institute (ADRI) Shaibal Gupta said revival of economy was possible only after complete lifting of the lockdown.
“The latest extension of the lockdown has come with certain relaxations. However, the extent of relaxations announced varies for different geographies in the country. There remain restrictions on the free movement of people and goods, which make it difficult to restart the economic activities in most sectors and geographies. The modern economy is structured in such a way that no sector operates in isolation. Hence, the real recovery in the economic activity will begin only when the health crisis is controlled and lockdown is lifted from all the sectors and the geographies,” he said.
Gupta added, “The crisis has created a lot of stress on the finances of central and state governments. However, a lot is expected from the governments to help the individuals and the economy. The only fear is that the prolonged lockdown might become unsustainable for both the businesses and the governments.”
D M Diwakar, a social scientist and professor of economics at A N Sinha Institute of Social Studies, said, “Although the third phase of lockdown is a little better planned than earlier, it seems difficult to revive economic activities. It will take months for situation to become normal.”
Economist and former principal of Patna College N K Chaudhary, on the other hand, said the relaxations would lead to marginal revival of economic activities.
“The relaxations in green and orange zones, including allowing movement of people in non-containment zones, will lead to slight increase in generation of demand and production. Bihar may see even better results as it is an agriculture-based economy with 89% of the population living in rural areas,” he said.
Rama Shankar, secretary of Institute of Chartered Accountants of India (ICAI), said the relaxations would not provide much impetus to the economic activities. “Since we don’t have much industries and factories here, the relaxations would not help,” he said.
Bihar Industries Association (BIA) president Ram Lal Khaitan, however, sees a 20% revival in state’s economy following relaxations in the lockdown. “Factories will open up in several sectors, including food processing, steel and cement. This will generate revenue and ensure money flow,” he said.
Economist and member secretary of Patna-based Asian Development Research Institute (ADRI) Shaibal Gupta said revival of economy was possible only after complete lifting of the lockdown.
“The latest extension of the lockdown has come with certain relaxations. However, the extent of relaxations announced varies for different geographies in the country. There remain restrictions on the free movement of people and goods, which make it difficult to restart the economic activities in most sectors and geographies. The modern economy is structured in such a way that no sector operates in isolation. Hence, the real recovery in the economic activity will begin only when the health crisis is controlled and lockdown is lifted from all the sectors and the geographies,” he said.
Gupta added, “The crisis has created a lot of stress on the finances of central and state governments. However, a lot is expected from the governments to help the individuals and the economy. The only fear is that the prolonged lockdown might become unsustainable for both the businesses and the governments.”
D M Diwakar, a social scientist and professor of economics at A N Sinha Institute of Social Studies, said, “Although the third phase of lockdown is a little better planned than earlier, it seems difficult to revive economic activities. It will take months for situation to become normal.”
Economist and former principal of Patna College N K Chaudhary, on the other hand, said the relaxations would lead to marginal revival of economic activities.
“The relaxations in green and orange zones, including allowing movement of people in non-containment zones, will lead to slight increase in generation of demand and production. Bihar may see even better results as it is an agriculture-based economy with 89% of the population living in rural areas,” he said.
Rama Shankar, secretary of Institute of Chartered Accountants of India (ICAI), said the relaxations would not provide much impetus to the economic activities. “Since we don’t have much industries and factories here, the relaxations would not help,” he said.
Bihar Industries Association (BIA) president Ram Lal Khaitan, however, sees a 20% revival in state’s economy following relaxations in the lockdown. “Factories will open up in several sectors, including food processing, steel and cement. This will generate revenue and ensure money flow,” he said.
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