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AHEAD OF THE CURVE THE OF AHEAD STRATEGY HOW TO MAKE IT WORK IT MAKE TO HOW
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FROM THE EDITOR-IN-CHIEF
s the deadly coronavirus rages across the world, it of treatment. The US did not go for a lockdown either, but it has put many facets of a country to test—its medical was, until recently, complacent about its strategy. South Korea infrastructure, its economy, its social security net, the has lost 229 persons to the disease so far, the US, over 28,000. A discipline of its people and the nature of its polity. Most Spain and Italy also locked down late, and the death toll in these importantly, it has tested the mettle of its leaders. The president countries too has been punishing. Complacency, clearly, is not an of one of the richest and most powerful countries in the world— option. These are things India must keep in mind as it reopens for the idiosyncratic Donald Trump—has been floundering, with business on May 4. But it should also remember that it is a poor disastrous consequences. He was first in denial of the crisis, then country which cannot afford an indefinite lockdown. he acted too late, causing confusion with dubious medical advice, quarrelling with state governors over jurisdiction, seeming more he costs to the Indian economy are already staggering. interested in reviving the economy than in saving lives and, in a Industry bodies and analysts estimate the world’s big- final piece de resistance, withdrawing funding from the World gest lockdown is costing the country $26 billion or Health Organization. No wonder, the US is the worst hit in terms T Rs 2 lakh crore per work week, and there is every likeli- of cases and deaths. There was also British prime minister Boris hood that we may not grow at all this financial year. It is, there- Johnson, who meandered around the crisis before taking ac- fore, imperative for the government to restart the economy. The tion, and ended up being afflicted himself. Then there have been process has begun, with the home ministry issuing guidelines exemplary leaders like French president Emmanuel Macron and allowing agricultural and MSME operations, transportation of German chancellor Angela Merkel, who have demon- goods without distinction and resumption of manufacturing in strated firm resolve in the face of the crisis. industries with access control. In a sense, their choices were much easier The government seems to have opted for a gradual than those before India’s prime minister. recovery rather than a sudden restart for various They are leaders of developed countries reasons. There is no demand, so it doesn’t make sense which have excellent medical facilities and to run major industries. The second priority is to get an enviable social welfare system. Naren- the economy back on track while ensuring there is dra Modi, on the other hand, has to bal- no resurgence of the disease. The government has, ance not just lives and livelihoods but also therefore, identified ‘hotspots’, or districts with high lives versus lives, considering the country’s incidence of COVID-19, for focused attention. A vital precarious financial state; 269 million, or element of this strategy will be testing and the use of 21 per cent of the country’s people, live below technology to track and treat the infected. With Lock- the poverty line, and will be pushed down even down 2.0, the government has given itself some breathing further if the lockdown continues endlessly. space to enhance medical infrastructure and help the needy. It could not have been easy for him, therefore, to announce, on These are some of the key aspects of the exit plan that our cover April 14, that the lockdown was being extended by another 19 days. package analyses. The lead story, by Group Editorial Director But Narendra Modi did it with conviction, combining firmness (Publishing) Raj Chengappa, examines what’s behind the strategy with optimism. It was also a collaborative rather than a unilateral and the imperatives ahead. Associate Editor Sonali Acharjee decision as several chief ministers, all battling spikes in CO- focuses on the critical aspect of testing. Deputy Editor Amarnath VID-19 cases in their respective states, favoured an extension of K. Menon looks at the strategy to manage the hotspots while the lockdown. History will be the better judge of this decision, but Deputy Editor Shwweta Punj assesses whether the new guidelines there is no disputing the necessity of the lockdown. A study by the expected after April 20 will be enough to revive the vital MSME Indian Council of Medical Research (ICMR) estimates that if even sector. MAIL TODAY photo editor Pankaj Nangia, meanwhile, takes one person is not isolated, he or she can infect 406 people in 30 us to the frontlines of the war—inside the intensive care unit of a days. At the end of the first phase of the lockdown, India reported designated COVID-19 hospital in Delhi. 12,338 infections and 420 deaths. Testing remains a big issue. The Tough times call for tough measures. The lockdown will conti- slow pick-up in testing means we don’t have enough data to accu- nue. There will be hiccups in getting the economy back on the rails. rately predict if we have achieved what we set out to do on March At the same time, the disease and death will have to be kept in 24—break the chain of infections and arrest community spread check. It is, no doubt, a long haul. But with a proactive government of the disease. India’s rate of testing as on April 16 was an abysmal and clear-headed leadership, coupled with the enterprise and forti- 196 per million. To reach South Korea’s level of testing (10,550 tude of its people, India, I firmly believe, will overcome this crisis. per million), we need to test 13.9 million people, and to match the UK’s 4,750 per million, we need to test around 6 million people as against the mere 258,730 individuals who had been tested till April 16. Clearly, we have a long way to go. For, unless we know the (Aroon Purie) size of the problem, we won’t know how to manage it. It is a race against time, as the disease spreads like wildfire. Worse, there is a P.S.: In this crisis, authentic information is your best weapon. worldwide shortage of testing kits and expertise. We at INDIA TODAY remain committed to bringing you clarity There is no one playbook in the fight against the virus. Different and correct information. A PDF version of this issue is available countries have to fight it differently. South Korea, for ins tance, free on www.indiatoday.in/emag or www.indiatoday.in/magzter. chose aggressive testing over a complete lockdown. It tested a We also bring you daily Insights on India’s response to the crisis. quarter of its population in six weeks and invested in new forms Log in to www.indiatoday.in/india-today-magazine-insight.
Illustration by SIDDHANT JUMDE APRIL 27, 2020 INDIA TODAY 3 UPFRONT LEISURE AAROGYA SETU: LONG Q&A: NEENA www.indiatoday.in ARM OF THE APP PG 5 GUPTA PG 66
CHAIRMAN AND EDITOR-IN-CHIEF: Aroon Purie VICE CHAIRPERSON: Kalli Purie GROUP EDITORIAL DIRECTOR: Raj Chengappa INSIDE GROUP CREATIVE EDITOR: Nilanjan Das; GROUP PHOTO EDITOR: Bandeep Singh MANAGING EDITORS: Kai Jabir Friese, Rajesh Jha CONSULTING EDITOR: Ajit Kumar Jha (Research) EXECUTIVE EDITORS: S. Sahaya Ranjit, Sandeep Unnithan MUMBAI: M.G. Arun SENIOR DEPUTY EDITORS: Uday Mahurkar, Manisha Saroop HYDERABAD: Amarnath K. Menon DEPUTY EDITOR: Shweta Punj SENIOR EDITORS: Kaushik Deka, Sasi Nair, Anilesh Mahajan MUMBAI: Suhani Singh; JAIPUR: Rohit Parihar SENIOR ASSOCIATE EDITORS: Ashish Mukherjee 16 MUMBAI: Kiran Dinkar Tare; PATNA: Amitabh Srivastava ASSOCIATE EDITORS: Shougat Dasgupta, Sonali Acharjee KOLKATA: Romita Sengupta; BHOPAL: Rahul Noronha; THIRUVANANTHAPURAM: Jeemon Jacob ASSISTANT EDITOR: Zinnia Ray Chaudhuri PUNE: Aditi S. Pai PHOTO DEPARTMENT: Vikram Sharma (Deputy Photo Editor), Yasir Iqbal (Deputy Chief Photographer), Rajwant Singh Rawat (Principal Photographer), Chandra Deep Kumar (Senior Photographer); MUMBAI: Mandar Suresh Deodhar (Chief Photographer), Danesh Adil Jassawala (Photographer); KOLKATA: Subir Halder (Principal Photographer); CHENNAI: N.G. Jaison (Senior Photographer) PHOTO RESEARCHERS: Prabhakar Tiwari (Chief Photo Researcher), Saloni Vaid (Principal Photo Researcher), Shubhrojit Brahma (Senior Photo Researcher) CHIEF OF GRAPHICS: Tanmoy Chakraborty ART DEPARTMENT: Sanjay Piplani (Senior Art Director); Angshuman De (Art Director); Devajit Bora (Deputy Art Director); Vikas Verma (Associate Art Director); Bhoomesh Dutt Sharma (Senior Designer) Siddhant Jumde (Senior Illustrator) PRODUCTION DEPARTMENT: Harish Agarwal (Chief of Production), Naveen Gupta (Chief Coordinator)
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AAROGYA SETU THE ‘LONG ARM’ OF AN APP
By Kaushik Deka
n his April 14 address that announced the extension of the coronavirus lockdown till May 3, Prime Minister Naren- Idra Modi appealed to Indians to follow a seven-pronged strategy to combat the pandemic. One of the measures was to download the Aarogya Setu contact-tracing app. The app, conceived by NITI Aayog, has been developed in two weeks by the National Informatics Centre in collaboration with the developers of makemytrip.com and 1mg.com. Aarogya Setu is designed on the premise that if two mobile phones are within Bluetooth range of each other, their users are potentially close enough to transmit the novel coronavirus to one another. Since its launch on April 2, the app, which is available in 11 Indian languages, has registered nearly 50 million downloads. A World Bank report released on April 12 says innovative solutions like the Aarogya Setu could greatly help track contagious diseases while a Uni- versity of Oxford study considers digital contact-tracing as effective, provided there is widespread adoption. Despite such praise, Aarogya Setu has attracted criti- cism over privacy issues as it seeks users’ personal infor- mation, such as name, age, sex, profession and countries visited in the past 30 days. Every 15 minutes, it collects data about the user’s location and the places the user
Illustration by SIDDHANT JUMDE APRIL 27, 2020 INDIA TODAY 5 UPFRONT HOW visits. According to the app’s terms TraceTogether app doesn’t collect of service, personal information and location data either. location data are securely stored on In its guidelines on using technol- AAROGYA the mobile device. The information is ogy to combat COVID-19, the Euro- uploaded to a central server only when pean Commission has advised against a user tests positive for COVID-19 or processing data on location or move- a self-assessment of symptoms indi- ment of individuals. Aarogya Setu asks SETU cates the possibility of infection. for GPS location even though this has no role in contact-tracing. “Location hile uploading to the server, data will not be used for surveillance,” WORKS W the information is hashed says NITI Aayog CEO Amitabh Kant. with a unique, randomly “It is used only for hotspots or where generated device ID (DiD) number, more testing is required. The identity which is used to identify the user in of a COVID-19 person will never be he Aarogya Setu all subsequent app-related activi- revealed to anyone.” contact-tracing app is ties. “The DiD is reconnected to the The app’s privacy policy states that T a key resource ad- personal information only when the the information is uploaded to a cloud dition in India’s fight against user’s risk of infection is so high that server in anonymised and aggregated COVID-19, garnering nearly 50 the government needs to tell the datasets only “for the purpose of gen- million downloads in less than person to get tested,” says Rahul Mat- erating reports, heat maps and other a fortnight besides praise in a than, a cyber-law expert consulted statistical visualisations”. Critics, how- World Bank report. Its de- by the Union government during the ever, argue that it is unclear as to what sign, however, has raised the development of the app. the government views as ‘anonymised’. hackles of privacy advocates When two registered users come In a detailed report on contact-tracing and cybersecurity experts, within each other’s Bluetooth range, apps, New Delhi-based NGO Inter- who feel the app seeks too their apps automatically exchange net Freedom Foundation (IFF) has much personal information. DiDs and information about where flagged the app’s shortcomings in They are not convinced by the contact happened and for what terms of data collection and storage, the official assertion that only duration. Every phone builds a log of purpose limitation and transparency. data of COVID-positive users every other phone in its close proxim- The app’s privacy policy states that is uploaded to the central ity, thereby creating a social chain information will be purged from the server—in anonymised form— of people a user has come in contact phone after 30 days and from the and purged 60 days after with. If such a user tests positive for server after 45 days if the user does not such users have been COVID-19, the system alerts all those test COVID-positive in that period. declared cured. who came in close proximity of the Information about users who test pos- person. Such users are advised to itive will be purged 60 days after they quarantine themselves and, should have been declared cured. However, they develop symptoms, get tested. personal data collected while register- Like Aarogya Setu user Aarti Singh ing with the app will be retained till (name changed) from Delhi, who the account exists and, thereafter, “as received an alert when a buyer at a long as required under any law in force grocery store she had been to tested for the time being”. Nowhere in the positive. “The app sent me an alert policy, though, is the legal requirement because it had recorded my location,” for this defined. says the 42-year-old architect. To “Users have no way of checking if Singh’s relief, her RT-PCR (reverse the government has deleted the data. transcription polymerase chain reac- They should have a judicial remedy tion) test turned out to be negative. to hold the government account- Cyber security experts claim contact-tracing apps in other coun- tries, such as Singapore and Israel, are Similar apps in other not so intrusive. Singapore’s Trace- countries are less Together app requires only the user’s intrusive. Singapore’s mobile number. Data is transferred to TraceTogether app a central server only after a COVID- requires only the positive user grants consent. The user’s mobile number and does not record 6 INDIA TODAY APRIL 27, 2020 location data PERSONAL A DETAILS SOUGHT (while downloading app) able,” says Sidharth Deb, policy and up to the test of proportionality,” says Name parliamentary counsel at IFF. The Amber Sinha, executive director at Phone number other sore point is that the liability the not-for-profit Centre for Internet clause exempts the government in & Society. “Only data of COVID- Age Sex the event of unauthorised access 19-infected users should be pulled to Profession and modification of a user’s infor- the cloud server.” Countries visited in past 30 days mation. Kant allays such fears. “The For Matthan, this criticism does government will not use the data not hold water as the details of only gathered by the app for any purpose those infected are uploaded to the other than COVID-19 medical server. “Let’s assume 100,000 people examination,” he asserts. will be infected in India. So, the data APP’S While the personal informa- of only 100,000 people will be pulled ACCESS tion collected cannot be disclosed or out by the government for analysis B Knows your transferred to a third party, critics and it will remain on the server for GPS location point out that since the privacy policy only 60 days. So that’s the canvas of does not specify which government the app in a country with 1.3 billion department owns the data, it remains people,” he explains. a property of the Union govern- Deb says the fact that the app’s METHOD ment and is, arguably, open to use code is not open source compromises by all agencies, including the police. transparency. “The Singapore tracing 1 Personal information and location data The other fear is that the govern- app has a dedicated website, which are stored on the user’s mobile phone ment could significantly expand its details how the data is collected, and a unique device ID number (DiD) is generated. The app can log data from surveillance powers by combining the app’s data with existing government all mobile devices within the Bluetooth NITI Aayog CEO range of the user’s phone. databases, many of which are seeded with mobile numbers. Amitabh Kant says 2 On testing COVID-positive, a user’s data Deb questions a clause that the data gathered by and details of all people who came within allows the government to share the the Bluetooth range of his/ her phone Aarogya Setu will not are uploaded to the central cloud server personal data with “other necessary be used for any other in anonymised form. Alerts go to such and relevant persons” for COVID-19 purpose except people to go for quarantine/ testing. related “medical and administra- COVID-19 medical tive interventions”. “Administrative examination DATA ANALYSIS AND ACTION functions can also mean that such information can be used towards, say, implementing lockdown and quar- GREEN YELLOW antine orders. This is against global stored, used and deleted. The source No symptom, no Symptomatic but best practices. For instance, the EU code is published for public scrutiny,” travel history no travel history says that to comply with its General he says. Aarogya Setu, in contrast, or contact Zero risk, safe Data Protection Regulation, the data prohibits users from reverse engi- with COVID-19 Social patient(s) collected by contact-tracing solutions neering the backend source code, distancing should be used only for healthcare-re- which means independent research- Moderate lated responses to the crisis,” he says. ers cannot ascertain the veracity of Data deleted risk after 45 days Matthan argues that the health official claims that the app is doing Self-isolation ministry cannot possibly work in this and not that. Data deleted isolation while combating CO- Despite these concerns, the of- ORANGE after 45 days, if VID-19, and inter-departmental ficial line is that Aarogya Setu has not infected Travel history, cooperation and sharing of informa- enough built-in security features to contact with tion is critical. perform its legitimate task without COVID-19 India has an estimated 400 infringing upon the privacy of citi- RED patient(s) million or more smartphone users. If zens. Privacy concerns can be dealt Tested positive Graphic by High risk even half of them download Aarogya with by legislating sunset clauses on Located and Setu, it could create a contact-tracing tracking systems,” says the World User, auth- quarantined for map of 200 million—15 per cent of Bank report. The next goal is to orities alerted; TANMOY CHAKRABORTY treatment the total population. “In a unique scale up Aarogya Setu by integrat- testing advised Data deleted crisis, the app may have a very legiti- ing it with feature phones through Data deleted after 60 days mate objective, but it doesn’t stand IVR support. ■ after 45 days, if from the day of not infected getting cured APRIL 27, 2020 INDIA TODAY 7 Action advised Data retention UPFRONT
GUEST COLUMN BUILDING A GAUTAM BHATIA POST-COVID REALITY
t hardly needs stating that the first two decades of this current situation is the loudest call to break fresh ground. century have led humanity into serial crises. Climate Can design then ask important civic questions? In cities I change, terrorism, economic meltdowns, growing reeling with inequities and physical shortage of space, can a nationalism, viral attacks and, finally, a pandemic. The family of four learn to live in a quarter of the area occupied rising cascade of catastrophes seems to be our selected path by the current middle-class home? Could its compaction into the future. It is obvious that most such disasters are also include other ideas of vertical vegetable gardens, solar the result of failing political and economic policies, coupled kitchens and work space to make it an efficient comfort with the lack of will and consensus between governments. machine? Since work from home would be the new reality, Just look at global ambitions related to climate change: movement in the city would be unnecessary. Could then as part of the Paris Agreement, governments grudgingly battery-less mini solar cars operate locally and only in agreed to limit global temperature daylight, forcing people to complete rise to less than two degrees; all this their daily tasks before dark, in while cyclones, forest fires and famines accordance with the sun’s rotation? will continue. Unwilling to give up With schools, colleges, restaurants, ingrained food choices like dairy and commerce and entertainment online, beef—whose production contributes neighbourhood community centres to global warming—some people may could become crucial social connectors, switch to cultured meat and artificial also functioning as primary schools and milk. As a concession to cut vehicular health clinics? Moreover, in a world pollution, some will ride electric self- digitally connected, physical travel to driving cars; but the current system distant places could be avoided, and of highways will remain intact, even entire lives constructed within the grow. Air travel will continue, but will ambit of a shortened radius. be supplemented by hyperloops and Doubtless, there is a tendency to maglev trains. Technological advances Is this an end to project a utopian idealism when there are merely used to offer more choices in bloated houses, big is a dramatic shift of direction; but conventional living and retain, as the expensive cars, familiar it goes without saying that societies Americans say, ‘our way of life’. fast foods, obesity and all everywhere will be profoundly shaped But things have suddenly changed. by the pandemic. Those that have the With the novel coronavirus spreading the excesses of travel? capacity to radically alter their future everywhere, the wide boundless arc of thinking will gain immensely from the the good life is now compressed into changed circumstances. India, sadly, a more focused domesticity. People are huddled at home, has been a timid follower of world trends and has rarely working from there, entertaining set a path of its own. The failed approaches of the most each other. The fear of contaminating and being advanced of countries, which still remain mired to the contaminated keeps public life in check. What impact belief of preserving ‘our way of life’, demands that we create will this have in the long term? models of our own. At a time Is this an end to bloated houses, big expensive cars, when extraordinary shifts in physical space, city life familiar fast foods, obesity and all the excesses of travel? and living patterns are being revealed to us, it seems the How then do we imagine life in the city? Our current state right time to forge an independent direction. Shorn of of closeted well-being will need a future outlet as places overconsumption, it will dictate the difference between forge an altogether new urban life—a life that adapts the surviving alone or living well together. A new urban future, gains of the lockdown into measurable routines. It falls on however uncertain, is always preferable to one that returns architects and planners to create a blueprint for the physical to revive a dead cow. ■ structure of the city and, if need be, define extreme and radical solutions. Invention comes at times of crises, and the Gautam Bhatia is a Delhi-based architect
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AMRITAPURI I BENGALURU I CHENNAI I COIMBATORE I AMARAVATI* ANI
MEAT/ FISH/ POULTRY
sector employs about 60 million. The All India Poultry Breeders As- CRISIS CUTS sociation (AIPBA) has estimated that the sector incurred Rs 22,500 crore in losses from February to mid-April. TO THE BONE Sanjeev Gupta, vice-president of the Poultry Federation of India, claims that By Shubham Shankdhar farmers are left with just 15 per cent of their original livestock, having been forced to cull the rest with demand tif Parvez, 28, a poultry cording to the Department of Animal dropping to almost nothing. The only farmer in Uttar Pradesh’s Husbandry, and broadly divided into businesses that will survive, he says, will Saharanpur district, is a two areas—the organised commer- be the larger ones in the organised sec- A worried man. Prices of cial sector, with about 80 per cent of tor. Aside from the curtailed business broiler chicken have nearly halved in the market, and the unorganised or as a result of the lockdown, rumours on the state, from Rs 90-110 a kg in De- ‘backyard poultry’ sector. According to social media that drew a link between cember to Rs 50 in early April, first on the Livestock Census 2019, India had a the coronavirus and chicken meat and rumours that chicken meat and eggs poultry population of 851.8 million, of eggs have also hit this sector badly. In caused COVID-19 and later from the which 534.7 million were commercial an attempt to rein in such misleading lockdown. His costs are around Rs 65 poultry and 317.1 million, the backyard information, the Ministry of Fisheries, a chicken, including chicken feed and variety. Some of the largest poultry-pro- Animal Husbandry & Dairying and staff wages. “If costs can’t be recovered, ducing states are: Tamil Nadu (120.8 the FSSAI (Food Safety and Standards what’s the point of running a busi- million), Andhra Pradesh (107.9 mil- Authority of India) issued separate ness?” he asks. lion) and Telangana (80 million). There statements to clarify the matter. The India’s poultry sector is valued at are around 30 million farmers engaged Maharashtra government also report- about Rs 80,000 crore (2015-16), ac- in backyard poultry and, overall, the edly announced that FIRs would be
10 INDIA TODAY APRIL 27, 2020 UPFRONT
SUBIR HALDER including a restructuring of loans for says. “Neither are fish being caught nor poultry farmers, compensation based is business being done.” India’s fisheries on the size of the affected farms, and sector, employing 14 million, produced subsidised poultry feed. Gupta says 12.6 million tonnes of fish in 2017-18, that the government must also issue says the National Fisheries Develop- clear guidelines to local authorities for ment Board. Over 50 different types poultry shops to be opened. If problems of fish and shellfish are exported to 75 continue and farmers stay away from countries around the world. But today, raising chicks, prices will shoot up when countries in West Asia and Europe have INTERRUPTED (Facing page) A poultry the market returns to normal. completely stopped imports. Moham- farm in Morigaon, Assam; Dumdum On a related note, prices of mutton mad Afzal, 40, promoter of export firm fish market in Kolkata on April 14 at are already soaring. Rezaur Rahman, Al Tayyaba Dry Fish in Mumbai, points the end of the 21-day lockdown a farmer from Chandanbara in East out that there can be no business when Champaran, Bihar, says the price of even fish farming is in limbo. “Only mutton rises every year around Holi, but those with leftover stock might be sell- BREAKING IT DOWN drops soon after. This time, prices have ing,” he says. The ban on catching fish remained high, at Rs 550 per kg. Rates during the lockdown impacted not only ` in Delhi have risen to Rs 700 per kg, fishermen and fish farmers, but also 22,500 crore with supply faltering in some areas. the hundreds of thousands employed in Estimated losses of the poultry As per reports, India’s exports of sorting and drying of stock. sector from February 1 to April 14 buffalo meat, the coun- Kerala, the second try’s second largest farm THE POULTRY largest seafood-export- export, have fallen 50 per FEDERATION ing state by value in India ` 1,500 crore cent, to 50,000 tonnes, in OF INDIA SAYS after Andhra Pradesh, the first week of March. SOME FARMERS exported about Rs 5,919 Estimated losses for meat The industry had lost Rs HAVE BEEN crore worth of marine exporters till early March 1,500 crore by then, as ex- products in 2017-18. This ports to Vietnam—which FORCED TO year, since January 15, no caters to the Chinese mar- CULL 85 % OF consignment has shipped 50 per cent ket—were stalled. Fauzan THEIR FLOCK out of Kochi port. And Alavi, vice president, All all export units in the Fall in chicken meat prices India Meat and Livestock state have remained in UP from Dec 2019 to Apr 2020 Exporters Association, said export closed since March 23, when Kerala units are facing a shortage of shipping imposed its lockdown (a day prior to the containers, but with the Chinese market Centre’s announcement). “Normally, we 60 million improving, enquiries have begun. India get a lot of orders in January. After the exported 1.2 million tonnes of buffalo virus outbreak, we lost all orders from Jobs in India’s poultry sector meat, worth Rs 25,168 crore, in 2018-19. China,” says Vishakan V., 57, who owns “The situation will not change much a seafood processing unit in Alappuzha (after the new guidelines) because there district. Europe and the US also started 14 million is lack of coordination between states,” cancelling orders from February. He says Jobs in India’s fisheries sector says Payal Kaur, international sales head the situation may normalise in another of Al Hasan Group in Delhi, a top ex- three months, but by then, the ban on porter of meat to Hong Kong, Iraq and trawling will be in force. “We have lost African countries. The firm says it faces a year due to the pandemic.” Although filed against rumour-mongers. restrictions at the local level, leading to a restrictions have now been eased, with- On April 15, the Centre allowed the 50 per cent drop in business. out export orders and blocked payments, resumption of all fishing-related opera- The lockdown has badly hit the marine processing units can’t operate, tions, including harvesting, process- fish industry as well. Babu Raja Bhai, he adds. Local fishermen are not going ing, cold chain, transport, sales and a fisherman from Gujarat’s Amreli to sea as auction centres remain closed. marketing. Shops are allowed to sell district, says that apart from his own Each additional day of the lockdown poultry, meat and fish, as long as they catch, he used to buy 300-400 pendis brings more pain to sectors like these. ensure strict social distancing. But the (3,000-4,000 kg) of fish daily from And with no end in sight, millions of pain remains. The AIPBA has report- other small fishermen to supply to the livelihoods are in peril. ■ edly sought urgent help from the Centre, market. “Everything has halted,” he —with Jeemon Jacob
APRIL 27, 2020 INDIA TODAY 11 UPFRONT
BOOKS HOW TO RUN A COUNTRY By Ashok V. Desai
rvind Panagariya is a pro- First, with its shrinking population, lific writer. He has written 20 China’s labour force will also decline, and books, 170 academic papers wages will rise. Second, the trade war A and twice as many press ar- with the US will make it less competi- ticles in a career of 47 years and lists be- tive. And India can expand manufactur- ing the prime minister’s Sherpa in three ing without giving up its specialisation G20 meetings among his exceptional in services; there is no conflict. But the honours. Economists learn policy-mak- Bharatiya Janata Party government has ing as a part of their curriculum. Few powerful supporters in industry; under find any use for it—except to comment their influence, it has been raising import on policies—but many harbour the am- duties on goods they produce, making the bition to apply it. Panagariya is keen on Indian industry even less competitive. making policy. He spent a couple of years Panagariya writes that he would presum- as the first vice-chairman of NITI Aayog ably favour unilateral free trade (UFT), immediately after it replaced Planning but sees no chance of the government Commission. He said he left because he listening. So he recommends a uniform INDIA UNLIMITED prized his Columbia professorship; but 10 per cent import tariff on everything. Reclaiming the Lost Glory the hard work he put into making NITI by Arvind Panagariya Why not devalue by 10 per cent and have Aayog a useful intermediary between HARPERCOLLINS UFT? In the early 1990s, when I was the Centre and the states and between `302 (Kindle); 423 pages briefly in government, we reduced tariffs economic policy and opportunism went and simultaneously devalued. It is best for to waste. But he is not one to give up. the government to ignore industry’s pres- He has a vaulting ambition for India, sure for protection; but if it is too weak or irrespective of whether he participates A shopping bag of partisan to do so, it should use exchange in achieving it. He published India: the reforms—Arvind manipulation rather than tariffs or im- Emerging Giant in 2008, and India’s Panagariya’s book port restrictions. Panagariya makes con- Tryst with Destiny in 2013; now he has essentially outlines structive suggestions in many other policy written India Unlimited. While the what he would do areas, including labour laws, land market first book was more or less an economic if he were India’s laws, affordable housing and dormitories history of independent India, the second prime minister for migrant workers, and slums. made a case for growth. His latest is a Finance has been one of the economy’s shopping bag of reforms—it outlines most closely-regulated sectors; regulators what Panagariya would do if he were have made a perfect mess of it—especially India’s prime minister. of the banking sector. Panagariya outlines He would give the poor a cash subsidy that would permit beautifully how they did it—except that he has nothing to say all the controls that afflict agriculture to be abolished. about the equity market, which SEBI destroyed so perfectly Rationing, or the public distribution system, can go and with that nothing further could go wrong with it. He lists govern- it procurement at minimum support prices. Competition ment research institutions, but forgets to mention that their would come to agricultural markets; agriculture can then research is practically useless, and omits private corporate specialise in crops in which it is competitive and start export- research which, though tiny, is more likely to be used. ing. Panagariya wants states to make leasing of agricultural At the end, Panagariya has a chapter on governance, land easy so that the large number of villagers who own tiny which reads more like a lecture to the prime minister on how plots can lease them and go and work in cities, instead of dig- to run the economy. This is perhaps the most relevant, though ging pits and filling them up under MNREGA. That would unlikely to find a listener. But there is no harm in being an remove a major obstacle to a rise in productivity. optimist, especially if one has a pensionable job in the US. ■ In the past three decades, China has become highly com- petitive in manufacturing and dominated world trade; India Ashok V. Desai was Chief Consultant to the lost out. Arvind believes this can be reversed for two reasons. finance minister during the reforms of the 1990s
12 INDIA TODAY APRIL 27, 2020 SIDDHANT JUMDE
Illustration by Illustration
GLASSHOUSE LEVEL PLAYING FIELD Congress president Sonia Gandhi recently suggested a two- year ban on all government advertising to media in the wake of the COVID-19 crisis—an idea roundly criticised by the media. Partymen instantly began speculating about its source. Could it be Jairam Ramesh? But turns out, it was the brainchild of the Nehru-Gandhi siblings—Rahul and Priyanka. The duo believes the media favours the Narendra Modi government only because they are dependent on government revenue. If the funds stop flowing, they feel the Congress could level the playing field a little. Wishful thinking?
NO FREE Dream in PASSES Quarantine aharashtra he district administration Mprincipal Tin Rampur, Uttar Pradesh, secretary (home) recently took over the Mohammad Amitabh Gupta Ali Jauhar University to convert it landed himself in trouble recently into a quarantine centre for COVID- for issuing a curfew pass permitting 19 patients. The Samajwadi Party, businessman Kapil Wadhawan and however, smells vendetta. The 23 of his family members to travel 100-bed medical university was Azam from Mumbai to Mahabaleshwar established in 2006 by Khan, their party leader from during the lockdown. It didn’t help Rampur. It was his dream project, that Wadhawan is under the CBI they insist. But Khan has bigger things lens in the YES Bank fraud case. to worry about: he’s currently serving Gupta was sent on compulsory leave time in Sitapur jail, with his wife and by the state government pending an son, for their role in a forgery case. inquiry. But who let the cat out of the bag? It’s being speculated that MANEESH AGNIHOTRI one of Gupta’s colleagues tipped off a senior government official in Delhi about the free pass.
—Sandeep Unnithan with Kaushik Deka, Ashish Mishra and Kiran D. Tare Jeevan ka
(N6,,3'R)D\HGH 6DYLQJEKL6XUDNVKDEKL Anmol safar Part - 3 BOLD MOVE Prime Minister Modi announces the extension of the lockdown till May 3
16 INDIA TODAY APRIL 27, 2020 COVER STORY
LEAD ESSAY
HOW TO MAKE THE EXIT STRATEGY WORK The key is to strengthen India’s health capacities to battle a possible second wave of infection, apart from providing substantial relief to the needy and a stimulus package to revive the flailing Indian economy
By RAJ CHENGAPPA
APRIL 27, 2020 INDIA TODAY 17 COVER STORY
LEAD ESSAY
LEADING BY EXAMPLE The prime minister takes stock of the COVID- 19 situation via a video W conference with state CMs
When Prime Minister Narendra Modi with burgeoning unemployment numbers and THE EXTENDED began his televised address to the nation at the humongous loss to the economy (expected LOCKDOWN 10 am on April 14, he made two gestures that to be 3-4 per cent of GDP), there were worries summed up the dilemma that India faced. He that, as an expert put it, “the crisis of corona WILL GIVE THE started by greeting the nation with a lengyan may be replaced by the crisis of hunger”. CENTRE AND THE wrapped around his nose and mouth. And STATES TIME then lowered it soon after to deliver his speech, BENEFITS OF THE LOCKDOWN the substance of which was that the national When the prime minister announced the lock- TO RAMP UP lockdown would continue for another 19 days. down on March 24, the previous week had seen INDIA’S HEALTH This was to ensure that the curve on the graph a steady rise in cases, but it was still low at 516 showing the number of people infected by the cases and nine deaths. On April 14, when the CAPABILITIES COVID-19 virus in the country flattens and prime minister announced the extension of the TO COMBAT A levels out. However, as an incentive, he added lockdown, the number of cases had grown to FURTHER SPREAD that if, within one week, there were clear signs 11,487 and the deaths to 393. The Union min- that the containment strategy was working, istry for health and family welfare (MoHFW) there would be a gradual reopening of the econ- believes the lockdown helped to considerably omy. It was in keeping with what he told state slow down the spread of the disease. India took chief ministers in a video conference three days six days to move from 6,000 cases to 12,000 earlier—“Jaan bhi, jahaan bhi (Life as well as as compared to the two days it took the US, livelihood)”. This phrase signalled a departure Italy three days and Spain four. Lav Agarwal, from the one he used when he first announced joint secretary in the MoHFW, said in a press the 21-day lockdown on March 24—“Jaan hai briefing that studies by the ministry indicated to jahaan hai (Health is wealth)”. that without a lockdown and other contain- So, what prompted the prime minister’s ment measures, there would have been a 41 decision to extend the lockdown and opt for a per cent cumulative rise in cases. As against phased opening up of economic activity? And 12,000 cases, the number would have shot up what does the country need to do to make the to 820,000 by April 15, he suggested. exit strategy he outlined work to save lives and The other key benefit of the lockdown was livelihoods? These are valid questions because that the Centre and the states used the 21-day
18 INDIA TODAY APRIL 27, 2020 GLIMMER OF HOPE? The lockdown has helped slow down the COVID-19 spread, but it’s still a long haul
40%
LOCKDOWN PERIOD 30%
20%
10% COVID-19 growth rate (%) 0% 51015 20 25 5 10 15 March April Growth rate = (Cases today/ cases previous day) - 1 Source: Ministry of Health and Family Welfare As on April 15, 2020, 5 pm
ANI
reprieve to bolster the country’s health capabilities to spreading the virus and, two, the country’s policymakers meet the enormous challenges of COVID-19. The real did not have a correct estimate of how widespread the worry for Team Modi was that should there be an expo- threat really was for them to lift the lockdown. nential growth in cases, afflicting some 100,000 people To rapidly overcome these and other impediments, in a populous city like Mumbai (as has happened in New the prime minister, on March 29, five days after the lock- York), it would immediately need 20,000 hospital beds down, set up 11 empowered groups comprising senior to isolate these patients and treat them. Of these, some bureaucrats and top experts (see graphic, The COVID-19 3,000 would require some sort of ICU care, including Response Team). Of these, three were dedicated to up- ventilator support. When the lockdown was imposed, grading the health system. These groups were entrusted Mumbai had about 2,600 isolation beds and about 300 by the Prime Minister’s Office to cut red tape and get ICU beds—far, far short of the requirement to meet a the job done, including importing equipment, if needed. potential crisis. Worse, across the country, there was a Modi’s instruction to them was simple: “Don’t tell me huge shortage of Personal Protection Equipment (PPE), what you are doing—tell me what you have delivered. I particularly for medical personnel who were risking their want outcomes, not inputs.” own lives in trying to save the lives of COVID-19 patients. The other pressing need was to ramp up testing to GETTING BATTLE-READY assess the spread of the virus. One of the major cri ticisms The Centre then sanctioned Rs 15,000 crore to meet levelled at the Modi government—by Rahul Gandhi, emergency health needs. By the second week, the groups among others—was that our rate of testing was dan- had begun to show visible results. When it came to PPE gerously low. Initially, the government had followed requirements, the concerned group adopted a twin strat- the advice of the Indian Council of Medical Research egy. India had 300,000 pieces of PPE as against the (ICMR) to test only symptomatic high-risk patients, estimated need of 20 million. Import orders, therefore, partly because of the limited availability of testing kits were immediately placed with foreign companies— and laboratory facilities in the country. That saw India mainly in China and South Korea—for 17.5 million kits. conducting an average of 5,000 tests a day as compared Meanwhile, some 30 Indian companies, both in the pub- to South Korea, which with one-twentieth our popu- lic sector and in the private sector, were asked to start lation, was doing 20,000 tests daily. That limitation manufacturing these indigenously after the government impacted the country in two ways: one, the low testing gave them the specifications and ensured that they could numbers meant that asymptomatic carriers could be meet the requisite quality standards.
APRIL 27, 2020 INDIA TODAY 19 THE COVID-19 The 11 empowered committees, set up on March 29, are at the forefront of the Union RESPONSE TEAM government’s response to the pandemic
1. Medical emergency 4. Augmenting 6. Coordination with management plan human resources & private sector, NGOs, international organisations Dr V.K. Paul capacity-building Member, NITI Aayog Arun Panda, Secy, MSMEs Amitabh Kant, CEO, NITI Aayog Dr Renu Swarup R.S. Shukla, Secy, Parl. Affairs Prof. K. VijayRaghavan Secy, Dept of Biotechnology Rajesh Kotecha, Secy, AYUSH Principal Scientific Advisor Dr V. Thiruppugazh Arun Singhal, Spl Secy, Health Kamal Kishore, Member, NDMA Joint Secretary, NDMA Rakesh Kumar Vats, Secy, S.M. Bhatnagar, Member, CBIC Lav Agarwal National Medical Commission Anil Malik, Addl Secy, Home Jt Secy, Health Dr P. Ravindran, Dir., Emer- Tina Soni, Dy Secy, Cabinet Sect Dr Amandeep Garg gency Med. Relief, Health Min. Gopal Baglay, Jt Secy, PMO Jt Secy, Cabinet Secretariat Pankaj Agarwal, Jt Secy, Aishvarya Singh, Dy Secy, PMO Rajender Kumar Cabinet Secretariat Director, PMO V. Sheshadri, Jt Secy, PMO
2. Hospitals, isolation P.K. Mishra & quarantine facilities, Principal Secretary disease surveillance to the PM & testing C.K. Mishra Secy, Environment Ministry Vinod Yadav, Chairman, Railway Board Prof. Randeep Guleria Director, AIIMS Dr Raman R. Gangakhedkar Head-ECD, ICMR Jiwesh Nandan Addl Secy, Defence Rachna Shah Addl Secy, Cabinet Secretariat Rajiv Gauba Vikas Sheel, Jt Secy, Health Cabinet Secretary S. Pardeshi, Jt Secy, PMO Mayur Maheshwari, Dir., PMO
3. Availability of essential medical equipment P.D. Vaghela, Secy, Dept of Pharmaceuticals Prime Minister Guruprasad Mohapatra, Narendra Modi Secy, DPIIT, Commerce Min. Chairman, National Ravi Capoor, Secy, Textiles Disaster Management Dr G. Satheesh Reddy, Authority (NDMA) Secy, DRDO M. Ajit Kumar, Chairman, 5. Facilitating supply chain & Central Board of Indirect logistics management for essentials Taxes & Customs (CBIC) Parameswaran Iyer, Secy, Dept Naveen Srivastava of Drinking Water & Sanitation Jt Secy, External Affairs Rajendra Singh, Member, NDMA Anu Nagar, Jt Secy, Health Ravi Kant, Secy, Dept of Food & Public Distribution Mandeep Bhandari Pawan Kumar Agarwal, Secy, Consumer Affairs Jt Secy, Health N.N. Sinha, Secy, Dept. of Border Management Piyush Goel, Jt Secy, Home Ashok Kumar Pandey, Member, CBIC A. Giridhar, Addl Secy, N. Sivasailam, Spl Secy, Commerce Ministry Cabinet Secretariat AVM S.K. Jha, Jt Secy, Air, Defence Ministry A.K. Sharma Usha Padhee, Jt Secy, Civil Aviation Addl Secy, PMO Ashutosh Jindal, Jt Secy, Cabinet Secretariat 20 APRIL 27, 2020 Rohit INDIA Yadav TODAY, Jt Secy, PMO Tarun Bajaj, Addl. Secy, PMO Graphic by TANMOY CHAKRABORTY 20 INDIA TODAY APRIL 20, 2020 COVER 7. Economic & welfare measures STORY Atanu Chakraborty, Secy, Dept of Economic Affairs LEAD ESSAY T.V. Somanathan, Secy, Expenditure Heeralal Samariya, Secy, Labour Rajesh Bhushan, Secy, Rural Dev. Pankaj Jain, Addl Secy, The team faced a similar problem when it came to testing Dept of Financial Services kits. Two types of kits—the confirmatory test kit called RT-PCR Amrapali Kata, Dy Secy, Cabinet Sect (Reverse Transcription-Polymerase Chain Reaction) and the Arvind Shrivastava, Jt Secy, PMO rapid blood test kit—are being used. RT-PCR kits were already Kavitha Padmanabhan, Dy Secy, PMO being made in India, but not in sufficient quantities. The rapid 8. Information, test, which promised results within half an hour instead of communication and the days RT-PCR tests take, would only indicate whether the public awareness immune system had antibodies, signifying an infection; an Ravi Mittal, Secy, I&B RT-PCR test would be needed to confirm if it was COVID-19. Sunil Kumar, Secy, The government is beefing up the availability of both kits, plac- Panchayati Raj ing orders for 4.5 million rapid kits and 2.5 million PCR kits, Lt Gen. Syed Ata Hasnain mainly with Chinese companies. Member, NDMA Punya Salila Srivastava part from the kits, there was also a need for Jt Secy, Home labs across the country to analyse the samples. The Padmaja Singh Jt Secy, Health group identified laboratories across the country, in- Sandeep Sarkar A cluding in medical colleges and, with online training, Jt Secy, Cabinet Sect approved close to 219 as on April 13, even as more are being Gopal Baglay, Jt Secy, PMO added. When the group took over, 5,500 tests were being done Hiren Joshi, OSD, PMO daily; within a fortnight, they had been scaled up to 24,000 Pratik Mathur tests a day, or by almost five times. By the end of April, the Dy Secy, PMO target is expected to hit 40,000 tests. Yet, crucial gaps remain, 9. Technology & data whether in the testing itself, or in the availability of kits and labs management (see accompanying story, Detection Gaps). The groups tackled the problem of hospital quarantine Ajay Sawhney, Secy, Electronics & IT Min. facilities, including ICU beds and ventilators, with the same vigour. To make best use of the already available facilities, the Anshu Prakash, Secy, Dept of Telecom groups worked on a graded system of healthcare: one for cases with mild symptoms and the other for those exhibiting serious G.S. Toteja, ADG, ICMR respiratory issues. They followed the thumb rule that 20 per Dr N. Yuvraj, Dy Secy, Ayushman Bharat cent of those infected will need some sort of hospitalisation, Bharat H. Khera, Jt Secy, and 3-5 per cent will require ICUs with ventilators. For the Cabinet Secretariat former, the members of the group told the district collectors Pratik Doshi, OSD, PMO to identify beds across private and public hospitals, apart Manharsinh Yadav from medical colleges, and requisition them to create isola- Dy Secy, PMO tion wards with beds. Over 138,000 such isolation beds have Hardik Shah been set up across the country, including those provided by Dy Secy, PMO the railways, defence and public sector units. 10. Public grievances India also had just 32,000 ventilators, when it needed & suggestions around 80,000. Here again, the policy of asking Indian com- Amit Khare, Secy, HRD panies to chip in and placing orders with foreign firms was cleared rapidly to acquire 40,000 additional ventilators. K. Shivaji, Secy, Min. of Group leader C.K. Mishra, secretary in the Union environ- Personnel Ashutosh Agnihotri ment and forests ministry, had instructed his team thus: “We Jt Secy, Home Min. should be prepared for the worst-case scenarios because it will Meera Mohanty be a huge tragedy if we don’t—every life is precious.” Dir., Cabinet Sect Saurabh Shukla, Dir., PMO POST-LOCKDOWN IMPERATIVE Abhishek Shukla Even as most groups were working on fortifying the health Dy Secy, PMO services to meet any exponential growth in cases, one of them 11. Strategic issues linked to lockdown was concentrating on planning an exit strategy to contain the virus and restart economic activity. Based on the spread Ajay Kumar Bhalla, Secretary, Home and concentration of the positive cases, the team worked out Dr V.K. Paul, Member, NITI Aayog a strategy whereby it split areas into hotspots with large out- V.P. Joy, Secretary (Coordination), Cabinet Sect A.K. Sharma, Addl Secy, PMO Arvind Shrivastava, Jt Secy, PMO APRIL 27, 2020 INDIA TODAY 21 Abhishek Shukla, Dy Secy, PMO COVER STORY
LEAD ESSAY
breaks, those with clusters of infection in them and potential hotspots. This was done in consul- tation with states and plotted on the Indian map (see accompanying story, The Line of Corona Control). The figures, as on April 16, were 123 ALL HANDS ON hotspots with large outbreaks, 47 with clusters DECK Finance and 207 potential hotspots—in all 377 affected minister Nirmala districts, a little more than half of India’s total Sitharaman 720 districts. In the next two weeks, there will undergoes a thermal scan at be a concentrated focus on these hotspots, where North Block; far there will be a total lockdown in containment right, defence zones, which number 1,500 so far. This will be minister Rajnath followed by intensive testing, along with the iso- Singh chairs lation and treatment of those who test positive. GoM meeting on COVID-19
his is one of the major reasons why Modi extended the lockdown for another 19 days to give the government it could not be what he termed a digital stop- TEAM MODI T greater confidence to lift it after May start, “you cannot go from 0 to 1—even if you 3. Yet, the threat will remain even after the open up all industry, it cannot go to 100 per cent IS WORKING lockdown is lifted. Dr Vinod K. Paul, member, in a week. It will have to be gradual, possibly ON A RADICAL NITI Aayog, points to three challenges ahead. one step at a time, for it to ramp up production.” REBOOT OF THE Firstly, he advocates that individuals, families Officials confess that they have not dealt with an and members of society observe a new normal to economic crisis of this magnitude in the past— ECONOMY, MADE maintain social distancing in their interactions neither in 2008 nor in 1991—when both supply POSSIBLE—EVEN and ensure the continued use of masks, hand- and demand have been totally depressed and NECESSARY—BY washing and restrictions on congregations. He almost all economic activity, barring in essential terms these ‘30 per cent of lockdown behaviour’ sectors, has ceased, a phenomenon most econo- THE WORLDWIDE and warns, “We cannot go back to our old ways mies in the world are grappling with. DISRUPTIONS as this would be a recipe for disaster.” The second OF THE GREAT point he makes is that the lockdown will not kill THE LONG ROAD TO RECOVERY the virus, only contain it. It is bound to prolifer- One of the empowered groups, headed by Union LOCKDOWN ate again and the preparatory effort the country secretary Atanu Chakraborty, who also heads has put in during the lockdown for surveillance, the department of economic affairs, has been health delivery and containment systems should tasked with working out appropriate economic help keep it in check. Thirdly, he says the lock- and welfare measures. Based on their inputs down has to be eased out in a manner that, in and those from other departments, including his words, can help “get maximum economic the department of promotion for industry and gain with minimum loss of lives through the internal trade, the government is approaching pandemic—that is the balance we have worked economic rehabilitation and revival through out through the lockdown”. three broad strategies. Its top priority is to en- This was what Modi did too, by announc- sure that the poor, migrant labour and farmers ing that the government would, from April 20 who have been hit hard by the lockdown are onward, start the process of restoring livelihoods provided adequate relief both in terms of food by permitting economic activity in key sectors, and cash. On March 25, a day after the lock- such as agriculture, pharmaceuticals, packag- down, finance minister Nirmala Sitharaman ing, exports, e-commerce, construction and announced a raft of measures totalling Rs 1.7 self-contained industrial clusters. The prime lakh crore for these groups, including increas- minister is deeply concerned about the looming ing grains and pulses entitlements under the economic crisis not just in India but the entire public distribution system and cash transfers world. A top official involved in the decision- to farmers, women and senior citizens in addi- making process reveals that while planning for tion to free cylinders to BPL families. Already, restarting economic activity, it was evident that Rs 32,000 crore has been disbursed in the past
22 INDIA TODAY APRIL 27, 2020 week, and a second round is expected next month. Business). If the process of harvesting goes smoothly, and Despite suggestions from experts, including Nobel much of the labour finds adequate work in this sector, the laureates Amartya Sen and Abhijit Banerjee, to give direct government is confident it will stem the growing unrest cash benefits to people rather than route assistance through and despair resulting from the lockdown and also infuse various relief schemes, the Modi government so far has liquidity and demand back into the economy. been averse to what it sees as disbursing doles without ac- countability. As a senior official put it, “The prime minister owever, a State Bank of India report, is against such loose doles and is judicious, even stingy, after the extension of the lockdown, bears grim about spending money—he will do so only when he is con- tidings, including GDP growth dropping to 1 per vinced it would go to the right people.” He also points out Hcent in FY21. It estimates that the total loss in in- how the government has given states Rs 11,000 crore for the come to the 373 million workers—whether self-employed 700,000 migrant labour in cities, including construction (52 per cent of the total), casual workers (25 per cent) or workers, to ensure their basic needs are met. the remaining regular workers—works out to around Rs Even for the first stage of reviving the economy, Modi 4 lakh crore (or 2 per cent of GDP) and that any fiscal insisted on focusing on agriculture and ensuring that the package should strive to make up the loss. In addition, rabi harvest was a success. The measures included freeing merchandise exports are expected to decline by 16 per cent all truck movement and pushing through radical reforms while the output loss is expected to be $50 billion (Rs 1.86 such as bypassing the Agricultural Produce Marketing lakh crore). Some of this can be compensated by exports Committees (APMCs) to purchase grain directly from of services, particularly in the field of information and the farmers. Great attention was paid to detail, includ- communications technology, as the pandemic is certain to ing allowing dhabas to remain open on the highways so give a push to digitisation and enhanced use of software to that truck drivers transporting supplies could have food maintain social distancing norms for a while. But key sec- en route. The government also stopped discriminating tors such as automotives, textiles, construction, aviation between essential and non-essential goods for transport, and tourism saw an average 50 per cent drop in output. in an order dated April 12, as it was causing enormous Top economic experts talk of the need for an additional blockages at check-posts. As an officer put it, “The speedy stimulus of at least 5 per cent of GDP, or about Rs 10 lakh movement of the entire supply system was dependent on crore. As part of the second leg of its strategic recovery, the whims and moods of the constable manning the post.” the government is working on a stimulus for sectors that The government also lifted all restrictions on the poul- urgently require it. However, as a senior official put it, try, fisheries and meat industry as well as milk distribution, “Don’t expect us to spend like mad or throw away money— which should see close to 30 million people return to work. the bucks will go wherever we get the most bang out of For medium, small and micro enterprises (MSMEs), a sec- it.” The government is likely to step up its plans to spend tor that employs 120 million, the Reserve Bank of India has the Rs 20 lakh crore it had earlier set aside for infrastruc- announced an indirect relief package totalling Rs 50,000 ture, whether roads, rail or ports, to boost employment. crore. But getting the MSME sector back on its feet will be The third prong of the strategy Team Modi is work- an uphill task (see accompanying story Getting Down to ing on is a radical reboot of the economy which the Great
APRIL 27, 2020 INDIA TODAY 23 COVER STORY
LEAD ESSAY
Lockdown (a term coined by IMF’s chief economist Gita real estate consultant Anarock. Gopinath) offers an opportunity for. The argument put The key remains in clearing the hotspots, particularly forward by many senior officials is that the pandemic will in metros such as Mumbai, Bengaluru, Chennai and parts forever change the way we do business and could see a ma- of Delhi, which have the highest demand for consumer jor churning in the global trade and financial architecture. goods and durables, automobiles and garments. The “It gives the Modi government an opportunity to aspire for Rs 7.6 lakh crore automotive sector, for instance, will big-ticket reforms,” says an official. BJP ideologue Ram find it pointless to start production if the dealerships Madhav even talked in terms of the prime minister laying in cities and towns remain closed. “In fact, the starting a New Deal for India as Franklin D. Roosevelt had done point of the automotive business is the dealerships. For for the US after the Great Depression in the 1930s. Cur- us, it makes sense to start only when the inventory gets rently, the thinking is not to dilute the process by trying moving,” says Vikram Kirloskar, president of the Confed- to focus on widespread reforms but to concentrate on a eration of Indian Industry (CII). Only a free movement of handful of sectors such as power, agriculture, petroleum, goods into and out of factories can make it sustainable for mining and labour and ensure that these are achievable. businesses to operate. R.C. Bhargava, chairman of Maruti Suzuki, says that his company cannot start operations NO EASY EXIT immediately since the automotive Yet, industry has serious concerns about the industry is a highly supply chain- government’s moves to restore economic ac- APART FROM driven one. Between 70 and 80 per tivity even after May 3. The key would be to A STIMULUS cent of the parts that go into making reduce the designated hotspots to a mini- a Maruti Suzuki vehicle are sourced mum, otherwise manufacturing activity will PACKAGE, INDIA from different suppliers, mostly In- continue to be stymied. A study by the HDFC MUST CONTAIN dian. “If my company has, say, 350 Bank research team shows that areas with THE NUMBER OF suppliers, and even if five of them high incidence of COVID-19 and falling in are in the ‘red’ zone, I won’t be able the hotspot zones are the biggest contributors VIRUS HOTSPOTS to manufacture,” he says. The com- to the Indian economy. The group that has TO PUT pany doesn’t have a problem opening the highest number of cases, including Maha- INDUSTRY BACK its dealerships, as some 60 per cent rashtra, Tamil Nadu and Delhi, cumulatively of them are outside the so-called accounts for 30 per cent of India’s GDP. Ma- ON ITS FEET hotspots. But the disruption in the harashtra and Tamil Nadu alone account for supply chain will make production 27.6 per cent of India’s manufacturing output of cars impossible. and 23.5 per cent of services output. These three states also It is not easy, therefore, to muster optimism unless account for as much as 22 per cent of all-India construction industry is confident that it can resume business without output. Another cluster of states—UP, Rajasthan, Andhra, major disruption. Yet, with the virus lurking around, the Telangana and MP—which accounts for 34 per cent of all- uncertainty will persist. In India, the virus may be con- India manufacturing activity, has fewer number of cases, tained in the coming months by what an official called but remains vulnerable. “General Summer’s help”, referring to the approaching season. But experts expect a second wave in September- ven the restricted number of industries November—the prime season for flu flare-ups. Of course, outside the COVID-19 ‘hotspots’ that have been as South Korea has shown, strong intervention can keep the allowed to resume activity will take a couple of virus in check and help resumption of economic activity. Emonths to actually come on stream. The gov- The one ray of hope is that with several groups across ernment has permitted construction activity, provided the world and in India working on a vaccine, we could well strict social distancing guidelines are adhered to. But the have one by the end of the year. India is well positioned hotspots are the areas where normally most construction to not only mount such an R&D initiative, but also has activity takes place. For instance, Mumbai, a hotspot, the manufacturing capacity to become one of the world’s currently has the highest under-construction residential largest producers of such a vaccine. Characterising it as a stock of nearly 465,000 units. This accounts for 30 per great opportunity, Dr V.K. Paul says, “We should chase the cent of the 1.56 million under-construction stock across R&D solution crazily and relentlessly not just in India but the top seven cities. Moreover, most of the migrant labour- across the world. Because if we succeed, we will remove all ers have already left for their home states, so getting them commas against the virus and put a full stop to it.” That back to the construction sites will not be easy. Migrant is a venture India and the rest of the world should invest workers comprise at least 80 per cent of the total 44 mil- heavily in. lion workforce in the construction sector at present, says —with M.G. Arun
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