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fter 48 days of lockdown, Prime Minister Narendra payroll protection programmes like in the US, UK and Germany. Modi announced a much-awaited stimulus package This is commensurate with the prime minister’s philosophy of on May 12. As part of it, he offered an economic stimu- giving no handouts to business. One hopes these loans will help A lus of Rs 20 lakh crore ($266 billion), or 10 per cent businesses revive themselves, but many who will be unwilling to of India’s GDP, among the highest in the world. It is in keeping increase their liabilities, or cannot avail of a loan, will go bank- with the revival packages announced by major economies—the rupt, resulting in a loss of jobs, income and, eventually, demand. $2.2 trillion dollar lifeline by the US, which is 13 per cent of its If demand does not pick up, it will mean mass bankruptcies, economy, or Japan’s $1 trillion, which is 21 per cent of its econ- which is a distinct possibility. To get a loan, of course, would omy. However, India’s package included the Rs 1.7 lakh crore entail navigating the petrified bureaucratic banking system. stimulus announced by finance minister Nirmala Sitharaman Banking is all about risk and our banks at the decision-making on March 26 and the Rs 7.9 lakh crore stimuli administered by level have become risk-averse for fear of subsequent prosecution. the RBI between February and April. The agriculture reform of allowing farmers to sell goods freely is Prime Minister Modi laid out his vision for an Atmanirbhar‘ most welcome as is the commitment to develop rural infrastruc- Bharat’ or Self Reliant India. It rests on five pillars—bringing ture and expand MNREGA. a quantum, not incremental, jump in the economy, creating a modern infrastructure, setting up a technology-based system of he sight of millions of migrants spilling out of Indian cities governance, leveraging our young demographic and harnessing and walking thousands of kilometres to their homes in Ut- India’s huge domestic demand. The prime minister is masterful T tar Pradesh, Bihar and Madhya Pradesh with their meagre in projecting a vision for many of his schemes, but their execu- possessions on their backs and braving heat, hunger, exhaustion tion has been a mixed bag. Schemes such as the Swachh Bharat and even death will haunt us for years to come. For them, the gov- Abhiyan, which greatly reduced open defecation, opening of bank ernment has given free food for only two months and the promise accounts for the unbanked, distribution of a portable ration card. It has been a colossal of gas cylinders, direct benefit transfer failure of this government to have not antici- for farmers and affordable housing have pated the consequences of the lockdown for the been reasonably successful while others migrant poor in cities who can’t even practise such as Make in India, Start-up India, social distancing in their cramped dwellings. banking reform, getting government Their misery was further compounded by the out of business have been non-starters. vacillating policies on allowing them to return The question that now arises is how the to their original homes. new vision of Self-Reliant India will be Our cover story, ‘Modi’s New Swadeshi translated into action. Does it imply a Deal’, evaluates the impact of this stimulus return to the Nehruvian idea of import package on the economy and examines its substitution? Prime Minister Modi in his implications both in the long term and the stimulus speech also asked Indians to be short term. vocal about local, urging them not only The prime minister faces the daunting to buy local products but also to promote task of reviving an economy paralysed by them. Does this presage higher trade bar- COVID-19. The Indian economy, besides its riers to protect inefficient Indian industry enormous size, is highly complex, as it operates and the end of the various FTAs we have at many levels. Its ways of working straddle signed? How do we become competitive in many centuries, from the most primitive to the our tradeable goods? What is our growth super-modern. Managing it from a centralised strategy now that the export-driven growth as practised earlier bureaucracy, that too a slothful, leaky one, will never get us the by South Asian countries and later by China is passe? Do we seri- desired result. The government has to trust the invisible hand of ously believe we can be part of the global supply chain when the the market to decide who produces what, where to sell it and who world is turning inwards and we still rank 63rd in the ease of do- buys it. This is the time when the government should reduce bur- ing business in the world? Such attempts have failed in the past, eaucratic controls on the economy and concentrate on building as we saw with SEZs. I believe the government should encourage world-class infrastructure, including human development, as FDI for catering to our domestic consumption; exports, if they the prime minister has promised. He can make the government happen, will mean a bonus. This way, we could have access to more efficient by reducing the number of ministries and keeping the latest technologies and the best practices in the world. These them focused on what governments do best. In India, everyone are some of the things the prime minister will have to address is an entrepreneur, even the corrupt among the bureaucrats as he walks his talk if India is to be pulled out of one of the worst and government officials. The prime minister has to boost the financial crises it has faced. entrepreneurial spirit of India to help it escape the current mess Meanwhile, finance minister Nirmala Sitharaman has, after and reduce the power of those who shouldn’t be in business. This the prime minister’s vision, rolled out a series of measures for is the quantum change I am looking for. MSMEs, which form 29 per cent of our GDP and 48 per cent of our non-agriculture workforce. She has basically provided them liquidity in the form of easy-to-get loans without collateral, subordinate loans and equity investments. MSMEs number 63.3 million, but this will really benefit only 4.5 million. There are no (Aroon Purie)

Illustration by NILANJAN DAS MAY 25, 2020 INDIA TODAY 3

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CHAIRMAN AND EDITOR-IN-CHIEF: Aroon Purie VICE CHAIRPERSON: Kalli Purie GROUP EDITORIAL DIRECTOR: Raj Chengappa GROUP CREATIVE EDITOR: Nilanjan Das; GROUP PHOTO EDITOR: Bandeep Singh MANAGING EDITORS: Kai Jabir Friese, Rajesh Jha INSIDE 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 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), 16 Yasir Iqbal (Deputy Chief Photographer), Rajwant Singh Rawat (Principal Photographer), COVER STORY 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), MODI’S Shubhrojit Brahma (Senior Photo Researcher) CHIEF OF GRAPHICS: Tanmoy Chakraborty ART DEPARTMENT: Sanjay Piplani (Senior Art Director); NEW Angshuman De (Art Director); Devajit Bora (Deputy Art Director); Vikas Verma (Associate Art Director); Bhoomesh Dutt Sharma (Senior Designer) SWADESHI Siddhant Jumde (Senior Illustrator) PRODUCTION DEPARTMENT: Harish Agarwal (Chief of Production), Naveen Gupta (Chief Coordinator) DEAL CHIEF OPERATING OFFICER: Manoj Sharma Can the Centre’s ASSOCIATE PUBLISHER: Anil Fernandes (Impact) `20 lakh crore financial IMPACT TEAM Senior General Manager: Jitendra Lad (West) stimulus and vision of General Manager: Mayur Rastogi (North), self-reliance revive Upendra Singh (Bangalore), Kaushiky Gangulie (East) GROUP CHIEF MARKETING OFFICER: Vivek Malhotra India’s Covid-stricken

SALES AND OPERATIONS DAS NILANJAN economy? Deepak Bhatt, Senior General Manager (National Sales) Vipin Bagga, General Manager (Operations) Rajeev Gandhi, Deputy General Manager (North) Syed Asif Saleem, Regional Sales Manager (West) S Paramasivam, Deputy Regional Sales Manager (South) Piyush Ranjan Das, Senior Sales Manager (East) by Illustration

ECONOMY INTERVIEW HEALTH

Volume XLV Number 21; For the week DECODING THE ‘BOOSTER FOR ARE WE May 19-25, 2020, published on every Friday STIMULUS MSMEs’ READY? l Editorial/Corporate Office Living Media India Ltd., India Today Group Mediaplex, 24 32 34 FC-8, Sector-16A, Film City, Noida - 201301; Phone: 0120-4807100 Is it enough to put In conversation with The lockdown has helped l Subscriptions: For assistance contact Customer Care India Today Group, C-9, Sector-10, Noida (UP)-201301; Phones: Toll-free number: 1800 1800 100 (from the economy back MSME and transport contain the spread of Covid, BSNL/MTNL lines); (95120) 2479900 from Delhi and Faridabad; (0120) 2479900 from Rest of India (Monday-Friday, 10 a.m.-6 p.m.); Fax: (0120) 4078080; on track? minister Nitin Gadkari but it’s still a long haul Mumbai: 022-66063411/3412, Kolkata: 033-40525327, Chennai: 044-24303200; e-mail: [email protected] l Sales: Direct all trade enquiries to General Manager (Sales), Living Media India Limited, C-9, Sector-10, Noida-201301 (UP) WELFARE MIGRANTS MIND YOUR MANNERS l Regd. Office: K-9 Connaught Circus, New Delhi-110001 l Impact Offices: 1201, 12th Floor, Tower 2 A, One Indiabulls Centre, (Jupiter Mills), S.B. Marg, Lower Parel (West), Mumbai-400013; Phone: 66063355; Fax: 66063226 l E-1, Ground Floor, Videocon Towers, Jhandewalan Extn, A MIXED THE NEGLECTED LIFE AFTER New Delhi l Guna Complex, 5th Floor, Main Building, No.443, Anna Salai, Chennai-600018; Phone: 2847 8525 l 201-204 Richmond Towers, 2nd Floor, BLESSING ARMY LOCKDOWN 12, Richmond Road, Bangalore-560025; Phones: 22212448, 22213037, 40 46 60 22218343; Fax: 22218335; l 52, Jawaharlal Nehru Road, 4th Floor, Kolkata-700071; Phones: 22825398; Fax: 22827254; l 6-3-885/7/B, Somajiguda, Some hits and many The suffering of How social etiquette Hyderabad-500082; Phone: 23401657, 23400479, 23410100, 23402481, misses in the post- migrant workers during will transform in 23410982, 23411498; Fax: 23403484 l 39/1045, Karakkatt Road, Kochi 682016; Phones: 2377057, 2377058 ; Fax: 2377059 l 2/C, “Suryarath Bldg”, 2nd Floor, lockdown package lockdown has been a the post-lockdown Behind White House, Panchwati, Office C.G. Road, Ahmedabad-380006; Phone: 26560393, 26560929; Fax: 26565293 l Copyright Living Media India Ltd. All for the poor national shame world rights reserved throughout the world. Reproduction in any manner is prohibited. Printed and published by Manoj Sharma on behalf of Living Media India Limited. Printed at Thomson Press India Limited, Cover by NILANJAN DAS 18-35 Milestone, Delhi Mathura Road, Faridabad-121007, (Haryana) and at Rajhans Enterprises, 134, Industrial Town, 4th Main Road, Rajajinagar, Bengaluru-560044, (Karnataka). Readers are recommended to make appropriate enquiries before sending money, incurring expenses or Published at K-9, Connaught Circus, New Delhi-110001. entering into commitments in relation to any advertisement appearing in this publication. The India Today Editor: Raj Chengappa. Group does not vouch for any claims made by the advertisers of products and services. The printer, l india today does not take the responsibility for returning unsolicited publication material. publisher, editor-in-chief and the editor of the India Today Group publications shall not be held liable for any consequences in the event of such claims not being honoured by the advertisers. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Delhi/New Delhi only FOR SUBSCRIPTION ASSISTANCE, CONTACT: Customer Care, India Today Group, C-9, Sector-10, Noida (Uttar Pradesh)-201301. E-MAIL to: Phones: 2479900 from Noida, 95120-2479900 from Delhi and [email protected] or Faridabad, and 0120-2479900 from Rest of India. Toll Free No.: 1800 1800 100. Fax: 0120-4078080. E-mail: [email protected] log on to www.indiatoday.in

Final Contents-May25.indd 4 5/15/2020 9:35:25 PM FORCE MAJEURE: THE BOIS WHO WILL BEAR LOCKER ROOM THE LOSS? PG 10 UPFRONT SCANDAL PG 12

ON THE JOB A pharma factory in Navi Mumbai MILIND SHELTE MILIND

LABOUR LAWS THE FUTURE OF LABOUR By Kaushik Deka

n his televised address to the na- Meanwhile, in an apparent attempt the necessary stretch room to make tion on May 12, Prime Minister to resuscitate economic activity, and adjustments and survive the crisis. Narendra Modi looked past argu- even in the face of a flight of labour The most significant changes have Iably more pressing questions to from the country’s big industrial cen- been announced in BJP-ruled Uttar focus our attention on the broad-sweep tres, several states have announced Pradesh, Madhya Pradesh and Gujarat, reforms he had in mind to reshape the their own industry-friendly tweaks to but states like Rajasthan and Punjab, Indian economy. A key area of reform, labour laws. The desperation among the where the opposition Congress is in he told us, was labour. India’s labour state governments is evident. The CO- power, have also tweaked their labour laws have often been seen as a big VID-19 pandemic has severely dented laws. UP has passed an ordinance impediment to economic progress. An the capacity of scores of industrial exempting businesses from the purview attempt was made last year to recodify units, which face closure if not allowed of most labour laws for the next three them, but it’s a work in progress and to restructure their wage bills. The legal years. Only the laws on construction still mainly restricted to central laws. rejig in laws, it is hoped, will give them workers, bonded labour, deployment

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of women and children and apply for renewals while factory elsewhere in the world, too, have To mitigate the impact of timely payment of salaries have licences will be renewed once witnessed massive informalisation COVID-19 and the lockdown on not been touched. In Rajasthan, in 10 years instead of annually. THE LEGAL MAZE...... AND RECENT of work in the past three decades. workers, several labour experts MP, Gujarat, Himachal Pradesh, Registrations and licences will Back home, a 2017 study by the V.V. recommend that the government Punjab, Odisha and Goa, work be issued within a day. In Guja-  Around 45 central laws and nearly 200 AMENDMENTS Giri National Labour Institute in offer a stimulus to industry to sup- shifts in factories have been rat, all industry approvals will state laws regulate the working conditions four states—Rajasthan, UP, Andhra port the wage burden and bring of labour in India Several states have, of late, increased from eight hours to 12, be given online within 15 days. relaxed or abolished labour laws Pradesh and MP—found that about comprehensive reforms in with provisions for overtime. Delays in clearances are the  In 2019, the Narendra Modi government in a bid to woo investments amendments to labour laws did not labour laws. Several countries have Other changes such as the bane of business, and cutting streamlined 44 labour laws into a set of necessarily attract big investments, extended wage support to industry.  UTTAR PRADESH: Industry has freedom to fire labour at will in turnaround time will no doubt four codes, as part of labour law reforms. boost industrialisation or create India, too, has taken measures in While the Code on Wages Bill has been been exempted from all labour laws, units that have less than 300 make them happy. “Relaxations more jobs. that direction. Starting April, in legislated, the other three—Code on Oc- except the Building and Other Construc- workers (this limit was set at in labour laws, and states mov- cupational Safety, Health and Working tion Workers’ Act of 1996, Workmen’s The move by several states to businesses that employ less than 100 earlier) are clearly intended ing towards a friendly labour en- Conditions; Code on Industrial Relations; Compensation Act of 1923, Bonded relax or altogether suspend labour 100 workers, those earning below to woo investors. In sync with vironment should go a long way and the Code on Social Security—are Labour System (Abolition) Act of 1976 laws has drawn criticism from trade Rs 15,000 per month are to receive and a section of the Payment of Wages Modi’s vision of a self-reliant in making foreign companies pending before a standing committee in unions, opposition parties and 24 per cent of their monthly wages Act of 1936 India, the states are promoting shift their factories from China the Lok Sabha independent experts alike. “These in their provident fund accounts for the changes in labour laws as an to India,” says D.K. Aggarwal,  These laws are, however, applicable to  RAJASTHAN: Amended the Indus- arbitrary actions by the states violate the next three months. Employees’ attempt to emerge as alternative president, PHD Chamber of workers in India’s formal sector. Close to trial Disputes (Rajasthan Amendment) the minimum wage guarantee for Provident Fund (EPF) regula- 81 per cent of all employed persons are Act, 2014, to raise the threshold for manufacturing hubs to China in Commerce and Industry. layoffs and retrenchment to units with labour, a right upheld by the Su- tions have been amended to allow a post-Covid world. “Industrial in the informal sector, 18 per cent are in preme Court,” says Jeet Singh Mann, account-holders to cite the pan- the formal sector and 0.8 per cent in the 300 workers, from 100 earlier reforms were long awaited. We ndia has around 45 central a labour law expert, who teaches at demic as a reason and make a non- household sector  MADHYA PRADESH: Establish- labour laws and about 200 the National Law University, New refundable withdrawal of 75 per ments with up to 100 workers can now Imore formulated by states. hire as per need. New manufacturing Delhi. The Rashtriya Swayamsevak cent of their corpus or three months A 2017 STUDY Industry is wary of this labyrinth units have been exempted for the Sangh-affiliated Bharatiya Mazdoor of their wages, whichever is lower. BY THE V. V. and has often made the case that GOING INFORMAL next 1,000 days from all but some Sangh (BMS), too, has taken a dim The states can now use the building these laws are both anti-labour provisions of the Factories Act of 1948. view of the changes. “This is the and construction workers’ welfare GIRI LABOUR The complexity of labour laws has and a disincentive to hiring more Factory licences will be issued within worst time to amend labour laws. It fund to provide relief to registered INSTITUTE SAYS often prompted employers to go for 24 hours and renewals will be given workers. There is some merit in will make workers more vulnerable construction workers. LABOUR LAW informal arrangements with workers for a decade instead of one year. Small that argument as even the formal even in the formal sector, underscoring and medium enterprises (SMEs) can to job losses at a time the country Sharma believes the states AMENDMENTS sector, which by one estimate the need for labour reforms be inspected only with prior approval should be joining hands to rebuild must now move beyond tempo- DO NOT ALWAYS accounts for 18 per cent of the of a labour commissioner or if there is their lives and the economy hit by rary suspension of labour laws ATTRACT BIG employed in India, is increasing- a complaint. Firms with less than 50 COVID-19,” said BMS president and bring forth the long-awaited ly hiring workers without formal 36.1 workers have been freed from registra- C.K. Saji Narayanan. The BMS, reforms to create a conducive INVESTMENTS Workers million tion or inspection. OR CREATE JOBS contracts. Many believe that without which claims the affiliation of over environment for both workers revoking some of these outdated formal  GUJARAT: New industrial establish- 6,000 labour unions, said it will and employers. Even the BJP, last laws will allow industry to flour- contract ments are exempted from labour laws, urge the Centre to prevail upon the month, submitted a report to the but have to adhere to the Minimum plan to increase job opportuni- ish, which, in turn, will encour- states to roll back their decisions. Union government, recommend- Wages Act of 1948, Industrial Safety ties by wooing investors to our age the creation of more jobs. 24.4 Rules and the Employee’s Compensation Labour being a concurrent subject ing a review of labour and land state. This is the right time to However, there is no em- million Act, 1923 under the Constitution, states can acquisition laws to woo investors. amend rules to attract indus- pirical evidence to suggest that frame their own laws, but these need Late last year, the Modi govern-  MAHARASHTRA: Shops/estab- tries willing to shift to MP,” labour laws are the main obstacle lishments/factories allowed to submit the Centre’s approval. ment streamlined central laws into said state chief minister Shivraj to industrial growth or are en- consolidated annual returns in lieu of four codes—on industrial relations, Singh Chouhan. UP’s minister couraging informal labour ar- 13.1 multiple returns xperts caution that the wages, social security and oc- for MSME, investment and ex- rangements. The Working Group million abolition of labour laws will cupational safety. Parliament has  TAMIL NADU: Units can employ port promotion, Sidharth Nath of Experts of the Commission on women on the night shift, but have to E create a hire-and-fire employ- passed only one code—the Code on Singh, says his state is geared up the Legal Empowerment of the ensure their safety ment model and further encourage Wages—while the other three are to attract Japanese investments Poor, set up by the United Na- informalisation of the workforce. still hanging fire. The COVID-19  KERALA: New industrial licences to moving out of China. This follo- tions Development Programme be issued within a week Job insecurity will push wages pandemic now leaves no scope for wed his video-link interaction (UNDP) in 2005, did not find down, reducing consumption and, delay as fragile firms need hand- last week with Japanese ambas- conclusive evidence that rigid  States such as MP, Gujarat, Rajast- eventually, demand in the economy. holding from the government and han, Himachal Pradesh, Punjab, Odisha sador to India Satoshi Suzuki. labour laws force companies to “This will slow down the economic freedom from the legal maze. That 2004 2011 2017 and Goa have extended work shifts in Some steps announced by opt for informal employment. factories from eight to 12 hours, with recovery. Workers’ interest and the Modi, in his May 12 address, men- the states target bureaucratic Several European countries, Source: Ministry of labour and employment; provisions for overtime country’s interest aren’t two separate tioned land and laws as the two red tape. In MP, for instance, where labour regulations are Periodic Labour Force Survey, 2017-18 things,” says Prof. Alakh N. Sharma, other focal points of reforms comes start-ups will no longer need to significantly more liberal than an eminent labour economist. as no surprise. n Graphic by TANMOY CHAKRABORTY

6 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 7

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6 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 7

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Liquor Brawl unjab chief minister P Capt. Amarinder Singh had to ask chief secretary Karan Avtar Singh to sit out the May 11 cabinet meeting after three key ministers—Manpreet Badal, Charanjit Singh Channi and Tript Rajinder Singh Bajwa— said they wouldn’t attend if he was present. The three had a run-in with Avtar Singh last week over the state’s “faulty excise policy”. Allegations were also made about Avtar Singh’s son having interests in the liquor business. An unheard-of fallout: Punjab’s liquor vends are closed again till the issue is resolved.

RUNAWAY LEADER social media war is Aon between the ruling SWADESHI BRAND AMBASSADOR JD(U) and the opposition n his May 12 address to the nation, Prime Minister Narendra Modi praised RJD in Bihar. JD(U) spoke India for achieving self-sufficiency in personal protection equipment sperson Nikhil Mandal accused RJD leader Tejashwi (PPE) for healthcare workers. But it’s the PM’s own endorsement of the I Yadav of being a serial esca gamchha that’s making waves. Modi has sported one in most of his public pist, since he goes missing appearances since April 14, when he appeared in a Manipuri meitei lengyan from the capital every time (top left) to cover his face. He has worn several such Indian stoles to public there’s a disaster—from floods engagements, rarely repeating the same scarf. to the pandemic. RJD leader Mritunjay Tewari shot back, saying Tejashwi—currently locked down in Delhi—lives in the people’s hearts unlike some of the ruling NDA lea Good Samaritan ders. With state elections just six months away, we haven’t xternal affairs ministerS. Jaishankar recently heard the last on this one. won the gratitude of a family from Kerala in Ethe UAE. The couple were struggling to get tickets to fly back home to perform the last rites of their fouryearold boy who had died of leukaemia. All the Vande Bharat flights to Kerala were full but the foreign minister responded immediately to a message from an Assambased doctor and friend of the family. The Indian consulate in the UAE not only booked the family on a flight to Kochi but also paid for their tickets. BANDEEP SINGH ZHAZOM

—Sandeep Unnithan with Kaushik Deka, Anilesh S. Mahajan and Amitabh Srivastava

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—Sandeep Unnithan with Kaushik Deka, Anilesh S. Mahajan and Amitabh Srivastava

FINAL Upfront-4-Glasshouse-May25.indd 8 5/15/2020 9:29:51 PM UPFRONT

UNCERTAIN TIMES A PVR theatre in New Delhi

FORCE MAJEURE

written to Union MSME min- is not robust, particularly house PIX ister Nitin Gadkari for relief, and shop tenancy agreements. flagging non-payment by clients He says one of his Delhi clients WHO citing force majeure, among who had added ‘acts of govern- other grievances. ment’ to the force majeure clause  The contracted players of in his agreement with a tenant BEARS Kolkata-based East Bengal FC will be insulated from losses due say they will move the Football to the lockdown. Players’ Association of India THE against the club’s decision to olding an insurance policy revoke their contracts. may not guarantee relief. A Union finance ministry no- HC.R. Mohan, national tification on February 19 said the head, property and risk engi- LOSS? COVID-19 situation qualified as neering, Bajaj Allianz General

RAJWANT RAWAT RAJWANT a force majeure event, and gov- Insurance, says: “Who benefits By Shubham Shankdhar ernment contractors unable to from insurance on the basis of meet commitments due to supply force majeure will be determined disruptions from China would by the terms and conditions of be exempted from penalties. But the policy. The insurance com- the notice is quiet on whether pany will be paying only for the the same terms would apply risk against which it has taken to contracts between private premium.” Mohan underscores he owners of Magneto The has not declared COVID-19 a natural asked power generation companies, business entities. “The govern- another critical aspect. “Usually Mall, a major commercial disaster. If the government does so, with whom they have signed power WHAT THE ment’s attempt is to pre-empt small businesses take policies centre in Raipur, are in a even we will be able to make insurance purchase agreements (PPAs), to stop LAW SAYS litigation. (A finance ministry like fire insurance for factories, peculiar bind during this claims to recover losses.” He is worried production, citing force majeure. They memo directs all ministries to warehouses or stores because it is  Force majeure is governed by lockdown. Four or five big about his company’s ability to repay its have expressed ‘inability to pay until treat disruption due to the virus mandatory to obtain bank loans. Section 32 of the Indian Contract firmsT occupying floor space in the mall bank loans if this ambiguity persists. further notice’. The Association of outbreak as a natural calamity, But few go for a business inter- Act, 1872, and frees parties of contrac- have defaulted on payment of rent and “If nothing works out, we will have to Power Producers is crying foul, and providing relief to government ruption policy to cover losses due tual obligations in the event of a war, maintenance expenses, citing losses take legal recourse,” he says. says this is a violation of the PPA. riot, epidemic or other ‘act of God’ contractors.) But it will apply to any reason.” from shutdown of business. Pleading This is not even an isolated case.  PVR, the country’s largest multiplex (natural calamities). only to contracts where the Legal disputes appear highly helplessness in the current circum- government itself is a party,” says probable in the given situation. stances, the firms have all invoked  Section 56 of the Act relates to the Sunil Garg, CEO of Faridabad- Jeevesh Mehta, lead partner of the ‘force majeure’ clause in their THE CENTRE’S NOTIFICATION ON FEB. 19 ‘doctrine of frustration’, which refers to based law firm SSA Legal. “We Delhi-based law firm Maven Le- contracts, which is legalese for a provi- EXEMPTS ITS CONTRACTORS FROM PENALTIES a change in circumstances that render it may also see public sector banks gal LLP Advocates and Consul- sion that gives parties to a contract extend reliefs such as deferral of tants, says, “The COVID-19 crisis IF THEY FAIL TO MEET OBLIGATIONS DUE TO impossible to enforce a contract. “Par- temporary reprieve from fulfilling ties use Sec. 56 when force majeure is [loan] instalments.” is well understood by all, so we contractual obligations. COVID-19, BUT IT’S SILENT ON WHETHER THIS not mentioned in their contracts,” says Can all businesses hope expect the focus to be on recon- While the typical scope of force APPLIES TO PRIVATE BUSINESS DEALS AS WELL legal expert Jeevesh Mehta. For instance, to get relief by invoking force ciliation. A large number of cases majeure does include ‘act of God’ he says, if an event company had booked majeure? Jaspal Singh Sethi, may still reach the courts.” One events, such as wars and riots and a concert that was impossible to hold partner with the Delhi-based PS of his clients sent a legal notice to epidemics such as the current one, the Across the country, the crippling chain, has asked all landlords to waive during the lockdown, it would be consid- Law Group, says, “Who gets re- a company that had contracted Indian government has yet to notify impact of the lockdown is seeing rent. PVR has more than 800 screens ered a ‘frustration of contract’ because lief and who does not depends on it to build a showroom, but then COVID-19 as a force majeure event. businesses increasingly invoke the in India and Sri Lanka. the contract cannot be executed. “In the terms of the contract.” Force wanted the contract nullified Anand Singhania, managing director force majeure clause—to either get a  Hero MotoCorp, India’s largest such a situation, the event company majeure will apply in the case when his client gave notice that of Magneto mall, may be clutching reprieve or even a waiver of contractual two-wheeler company, has held back would have to return any advance it of COVID-19 only if epidemics the lockdown would cause delay. at straws, but he is quick to point out commitments. Consider these: payments to vendors. may have taken.” are included under this clause “Each case will entail a different this all-important detail: “Their (the  In Uttar Pradesh, Punjab, Haryana,  Even small businesses, such as crane in the contract. Sethi points out set of problems. If parties fail renting firms) notices mention force Telangana, Madhya Pradesh and operators, are suffering. The Crane that smaller entities could be in at reconciliation, there will be majeure even though the government Dadra and Nagar Haveli, discoms have Owners Association of India has trouble as their legal paperwork litigation,” says Mehta. n

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UNCERTAIN TIMES A PVR theatre in New Delhi

FORCE MAJEURE

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instagram.com

BOIS LOCKER ROOM SCANDAL aged 13 and 14 were suspended from a school in Mumbai including removal of content that violated our commu- for the horrific content of their WhatsApp chats, which nity standards, and our ongoing efforts to create a safe included talk about “gang-banging” classmates. online experience for Instagram users,” a spokesperson So again we have it, the big question that pops up for Facebook, which owns Instagram, told india today. every time a scandal of this sort erupts. Is the digital But beyond the legal ramifications, the scandal has BLACK world we live in, more importantly the easy availabil- also exposed the communication breakdown among stu- ity of pornography, taking a heavy psychological toll dents, teachers and parents. Most schools tend to cover on children? Dr Suresh Bada Math, head of forensic up such incidents fearing a loss of reputation. Sunita psychiatry at NIMHANS in Bengaluru, says some stud- George, principal of Bombay Scottish School, says such MIRROR ies do suggest that children could be more sensitive to instances are common across schools, but they aren’t sexually explicit material. Dr Nimesh Desai, chairman necessarily a gender issue. “The issue is about digital By KAUSHIK DEKA of the Institute of Human Behaviour and Allied Sciences ‘behaviour’ and long-term value education. Children Illustration by NILANJAN DAS (IHBAS)in Delhi, has a more nuanced view. He says share without thinking twice, without fear or concern individualistic pleasure-seeking behaviour is nothing for another. They know about digital footprints, but new. What has changed today are three things—ease habits and attitudes towards online behaviour cannot of access, repetitive media content and the engage- be changed overnight,” says George. Prashant maintains was towards the end of March and ment of all senses—and this is leaving a deeper impact that he was unaware of engaging in any criminal act. Prashant (name changed), an arts stream on the human psyche and behaviour. Children don’t “We were chatting among friends. We didn’t expect this student in one of Delhi’s top private even realise how it impacts their perception of what is to get out, so we typed whatever we felt,” he says. schools, had just finished his Plus 2 board acceptable and what is not. “It isn’t about teaching them exams and was all set to have “some fun”. moral values, but contemporary values. Issues of privacy, nd even though the principals and staff at the But then COVID-19 and the lockdown consent, understanding my pleasure has to stop when it Delhi schools involved argue that they can’t be ITspoilt all his plans and confined him to his room. Worse, impacts another person’s space. These must be taught to A held accountable for what students do at home, the ‘fun’ has gone sideways and now he fears he’ll have to children,” says Desai. there is now an acceptance that teachers and parents spend time in a police lock-up. There is also debate on how social media platforms need to come together to sensitise their wards about pri- Prashant was part of the now infamous Instagram are adding to this menace, thanks to the legal opacity vacy, personal and shared spaces and a digital decorum group, ‘Bois Locker Room’, which came to light on May What happened in the in fixing accountability. Cyber law experts are demand- alert to the dangers of the online universe. “Parents need 3 when a Delhi girl shared screenshots of the sexually ing a revision of IT laws to make intermediary social to be involved a great deal more. If you are giving your explicit conversations in the group. The viral post had ‘Bois Locker Room’? platforms such as Facebook, Instagram and Twitter children access to a phone, you must also guide them on students of Delhi’s prominent schools boasting about more accountable. Instagram, the intermediary in this its potential misuse,” says George. l In April, more than images are being shared their sexual escapades, sharing nude/ morphed pho- case, has removed the chat group, but many are of the Experts agree that parenting plays a key role in miti- two dozen students l One girl posts a screen- tographs of girl students and bodyshaming them. “We from some of Delhi’s top view that this is not enough. “The responsibility doesn’t gating the harmful effects of explicit content. Parents shot of the chat on her shouldn’t have done what we did. It was a big mistake, but private schools become end in deleting the group. Evidently, there was lack of must discuss sex, sexuality, gender-related issues with Instagram profile on May we are not criminals. There was no plan to rape anyone,” part of a private Insta- due diligence. Appropriate action must be taken against children and take steps to ensure there is a sensitive 3. It goes viral says Prashant, who will turn 18 in a few months. Delhi gram chatroom, where Instagram as it can be seen that the service provider approach towards these. “Children don’t understand the Police cyber cell head Anyesh Roy corroborates this. The they discuss their sexual l Some others repost the abetted the commission of these violations,” says cyber nature of social media. Open conversations around gen- rape conversation, he confirmed, did not take place in the escapades, the physical chat, adding an unr elated law expert Pavan Duggal. The Delhi Police cyber cell der, sex, internet behaviour are as important as conver- Bois Locker Room; it was part of a Snapchat interaction, appearances of girls they Snapchat conversation registered an FIR on May 4 under multiple provisions of sations about diet or academics,” says Dr Upasana Chad- between a boy and a girl, intriguingly between a girl and a boy. The girl, assum- know and share morphed the Indian Penal Code, 1860, and Information and Tech- dha, a Delhi-based psychologist, adding that it is always where the girl, assum- ing the fake identity of a boy, was instigating the boy at photographs of some of nology Act, 2008, but has not pressed charges against the survivors of slut-shaming, blackmail or sexual abuse them nude ing the fake identity of a the other end of the conversation to rape her to check his boy, is telling the boy to Instagram. The police has arrested the who seek therapy. It is rare to find an l “strength of character”. The boy, thankfully, refused. One boy, who is added rape her. This gets mixed group administrator, an 18-year-old, “Children don’t offender doing so because they are to the group, takes a But even though the ‘locker room’ boys did not plan a up with the Bois Locker and interrogated several members. understand the always being defended and often don’t rape, the perverse sex talk did enough to hog the national screenshot of these Room conversation Supreme Court lawyer Neela even realise their actions have caused conversations and leaves gravity of social headlines for a few days and refocus public attention on an Gokhale says the perpetrators must be pain to another. But even as the law the group l Two FIRs have been media. Open conver unsettling social problem that has a myriad dimensions: takes its course, the change must begin file filed. Police have de- booked under the Protection of Children sations around the proliferation of sexually explicit content on the inter- l He tells his friends from Sexual Offences (POCSO) Act, with parents talking to their children tained two participants gender, sex, internet net; the easy access teenagers and young adults have to it; about the chat group; of the chat group—an 2012, as the crime involves objectifica- and being categorical about what is the unregulated web traffic of this content via social media they contact the nine adult and a minor. tion of minors. The Delhi Commission behaviour are and is not acceptable—both in the real girls who are being com- platforms; its effect on impressionable minds—and also Investigation is on. for Women (DCW) has also issued important today” and virtual world. And it must involve mented on and whose how entrenched male privilege continues to (mis)shape Instagram a notice. “We have responded Dr UPASANA CHADDHA sons as much as daughters. n gender stereotypes. In December 2019, eight students to it, informing the DCW of our actions, Psychologist with Sonali Acharjee

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GUEST COLUMN THE SHOW MUST GO ON AJAY BIJLI

aving been in the cinema industry for the past 30 interventions are in order, and here are my recommendations years, I do have passionate views about its place in our for all stakeholders: H lives as the most affordable and enjoyable out-of-home Following the example of other countries, the government entertainment, as also on reviving the fortunes of this industry. should consider: i) wage subsidies for the non-operational I’ll get to the specifics of how to engineer this revival presently period; ii) a waiver of GST—if not an exemption from all taxes but don’t judge my views by the title of this piece. (GST, show tax, LBT)—for a year after resumption of opera- The catastrophes of the past century did not prepare us tions; iii) interest-free loans for three years with a one-year for the depredations of this pandemic. Countries, govern- moratorium; iv) bringing COVID-19 within the ambit of force ments and world leaders are improvising solutions on the majeure provisions. run, and have responded disparately. But the so-called toss-up The film industry has a big role in ensuring that new mov- between lives and livelihoods baffles me. Without a doubt, ies continue to come to the big screen. OTT platforms, which life comes first, but livelihoods too need existed before COVID and will no doubt urgent attention. In a recent article in the thrive after, will never be able to bring Financial Times, Martin Wolfe writes: 60 per cent of the revenues the theatri- “Maintaining the lockdown and saving cal business generates. Besides, as Adam the economy are mutually compatible; it’s Aron, CEO of AMC Entertainment, artic- not a matter of protecting people or the ulated in a letter to the head of Universal: economy, but of protecting people and “Theatrical releases boost publicity, posi- the economy.” The trade-off between lives tive word-of-mouth, critical acclaim and and livelihoods is indeed a false binary. downstream revenues”. I fully understand the measures Cinema operators too need to reimag- taken by the Indian government so far to ine the theatre experience to allay people’s contain the spread of the virus. But the fears—measures are being planned world extended lockdown has also resulted in a over and we should adopt best practices, huge economic crisis—jobs have been lost among them: i) staggered programming and many businesses are either vanish- To resolve any stress to help maintain physical distance and ing or have reached a point of no return. between malls and glass barriers at transaction points; ii) After nearly six weeks of the lockdown, theatres, the pandemic limiting physical interaction by digitising the lives-or-livelihood question is still all payments, pre-packaging F&B items poignant, some would argue, but the gov- should be declared a from a truncated menu and promoting ernment has responded to the clamour to force majeure event self-service iii) medical check-ups for save the economy and a phased re-open- staff, deep cleaning and ULV sanitising ing is finally under way. of surfaces (a ULV or ‘ultra-low volume’ However, a simple go-ahead to resume operations is no cleaning protocol can create an anti-bacterial layer that lasts panacea for our economic woes; a lot more needs to be done. up to 30 days); iv) strong internal/ external communication to The worst-hit industries need some relief and a stimulus pack- maintain hygiene and answer customer queries. age to save them from irrecoverable long-term damage. In order to resolve any stress between malls and theatres, Coming to my own industry, exhibition cinema is the the real estate end of the industry, the pandemic should be entertainment staple for India and, in volume terms, the declared a force majeure event, and as Atul Ruia, managing largest in the world. No other country, including the US and director of Phoenix Mills, put it: only a certain “reasonable- China, has an annual turnover of 1,500 films and 1.5 billion ness” can ensure that the new arrangements don’t damage tickets! Content is one leg of our industry and real estate— either entity. shopping centres and malls—the other. Directly and indirectly, At the end of the day, after all the necessary precautions we employ over 400,000 people, and a slackening of content have been taken, it will be down to the consumer to ensure the creation for the big screen will have a domino effect on a lot show goes on. The safe confines of our homes cannot deliver of skilled jobs. On the other hand, as anchor tenants, if cin- the social experience we crave and need. n emas and multiplexes stop attracting audiences, it will impact the viability of malls and shopping centres. Some immediate Ajay Bijli is the chairman and managing director of PVR Ltd

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Upfront-9-GC-Ajay-May25.indd 14 5/15/2020 6:42:35 PM FOCUS EDUCATION VIT leads the change during the pandemic

he spread of COVID -19 is on the rise. In light of the current situation, Vellore Institute of Technology, Bhopal (VIT), School of Computing Science and Engineering (SCCE) Thas organised an online National Level Hackathon, ‘HackCoVIT 2020’. Aimed at helping people during the global pandemic, students up to Undergraduate level participated and exhibited their skills, from across 127 institutions from 19 different states in the event. The participants were given 32 problem statements, under five diverse themes to conceive solutions. Jury members included eminent leaders from companies like Google, Microsoft, Philips, Thomson Reuters, Robert Bosh, Payoda Technologies, thought-works, and Stealth mode. In a first, the institution has also released an advisory to become digitally safe during the corona crisis. The Division of Cyber Security and Digital Forensics, VIT Bhopal, working closely with the

G Viswanathan Chancellor - VIT

characters, with a combination of upper and lower Jury members included case letters, numeric and special characters is also helpful. One must also keep revise security keys and eminent leaders from wifi passwords and brush up softwares regularly. These guidelines are issued in the public interest companies like Google, by IPS Maithili Sharan Gupta (DGP, Police Reforms, Microsoft, Philips, Madhya Pradesh and Shishir Kumar Shandilya, Division Head of Cyber Security and Digital Forensic Kadhambari AVP - VIT Thomson Reuters, at VIT Bhopal University along with a team of B.Tech Cyber Security second year students. Robert Bosh, Payoda Police Academy in Bhopal describes precautionary The VITEEE (VIT Engineering Entrance Examination) measures such as practicing a zero-trust policy Technologies, thought- for admission to Engineering programmes this year while online, updating video conferencing software works, and Stealth is scheduled for July 29 to August 2, 2020. It will to their latter versions, keeping your passwords safe, be held in 119 cities across India and all central and and limiting unnecessary downloads to be safe from mode. state government regulations on social distancing scammers. Using strong passwords with at least 12 and hygiene will be strictly followed. COVER STORY LEAD ESSAY MODI’S NEW SWADESHI DEAL The prime minister unveils a Rs 20 lakh crore financial stimulus and vision of self-reliance. But will it revive India’s Covid-stricken economy? By RAJ CHENGAPPA

rime Minister Narendra Modi has the uncanny knack of turning ad- versity into opportunity. When he began his address to the nation on May 12—his fifth since he imposed an unprecedented nationwide lockdown—most expected him to dwell on how his government was handling the COVID-19 pandemic and on plans for an exit strategy. After all, the number of coronavirus cases since the country went into lockdown on March 25 had risen from 564 to 70,756, and over P 2,293 Indians had died of the disease. The lockdown had already been extended twice and will complete 55 days on May 17 when the third phase ends. Yet, half the country’s 733 districts remain in the red and orange zones where most of the restrictions on movement will continue into Lockdown 4.0. With these districts accounting for as much as half of India’s GDP, the prospects for economic revival look bleak. More ominously, there are no signs of the infection curve flattening to indicate that the virus has been effectively contained.

Rather than highlight these concerns as expected, the of Rs 20 lakh crore, equivalent to 10 per cent of the GDP, prime minister instead chose the occasion to present a to revive India’s Covid-stricken economy. This is almost soaring vision of India’s ability to emerge as a strong, self- double the amount most experts had been demanding reliant nation that will also be a world leader. To quell the at the beginning of the lockdown. Terming the package rising sense of disbelief his words may have provoked, he Atmanirbhar Bharat Abhiyan (Self-reliant India cam- talked money, announcing a financial stimulus package paign), Modi also promised to undertake “quantum”

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CS-Lead Essay-May25.indd 16-17 5/16/2020 4:20:57 AM COVER STORY LEAD ESSAY MODI’S NEW SWADESHI DEAL The prime minister unveils a Rs 20 lakh crore financial stimulus and vision of self-reliance. But will it revive India’s Covid-stricken economy? By RAJ CHENGAPPA

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reforms for the economy. “Our responsibility to make the nance with the Bharatiya Janata Party’s ideological moor- 21st century the century of India will be fulfilled by the ings. Its parent body, the Rashtriya Swayamsevak Sangh pledge of a self-reliant India. This will be a new vow for (RSS), has long proclaimed the need for a ‘Swadeshi’ or every Indian,” he declared. home-grown model of economic development as a project Inevitably, the Opposition ripped into Modi’s speech. close to its heart. However, lest the slogan be construed Congress leader Jairam Ramesh tweeted, “The prime as signalling an insular turn, Sitharaman was quick to WITH A CALL FOR minister did what comes to him best—Maximum Packag- clarify that Mission Swadeshi was not about turning away ing, Minimum Meaning. It was a case of classic NAMO: from the world. “When the prime minister said self-reliant SELF-RELIANCE, No Action Messaging Only.” India,” she said, “he did not want to make India an isola- MODI IS RESETTING tionist country. The intention is to take local brands and owever, that the prime minister meant make them global. To have the capability to build enter- INDIA’S ECONOMIC business was evident from the very next prises that will help the world.” Indeed, some observers VISION TO MEET day as his finance minister, Nirmala Sith- saw the swadeshi tag as a cover to pre-empt resistance araman, began daily announcements of from Sangh Parivar organisations over some of the bold THE CHALLENGES H financial packages and reforms. By May reforms he proposed to unveil. POSED BY A COVID- 15, she had listed Meanwhile, given the distinctly HIT WORLD packages for urban Nehruvian ring to both self-reliance migrants and farmers and sectors such and swadeshi, many industrialists fear as Micro Small and Medium Enter- OBSERVERS FEEL THE a Great Leap Backward. As Ramesh prises (MSMEs), real estate and power. Vaswani, an industrial consultant, More is expected for the education, SWADESHI TAG IS A said, “It symbolised a system of manu- coal mining and manufacturing sec- COVER TO PRE-EMPT facturing that followed outdated and THE BIG PICTURE Prime Minister Narendra Modi during his tors in the coming days. While many antiquated practices, governed by the May 12 televised address to the nation in the MSME sector were unhappy RESISTANCE FROM heavy hand of bureaucracy. Self-reli- that they did not receive any direct fi- THE SANGH PARIVAR ance and the protectionist policies of nancial support, other experts criti- the past saw industries turn inefficient preferred foreign ones without trusting our own people Donald Trump’s victory, he believes, was an outcome of cised the government’s stimulus pack- OVER THE BOLD both in terms of production and costs, to do so. The prime minister’s self-reliance campaign puts the diminishing trust in globalisation to deliver and the ages for relying more on easing of REFORMS PM MODI making consumers suffer. It would be the trust back in the people of India—that’s the differ- growing consensus that patriotism and nationalism were credit facilities and moratoriums on a non-starter if this government goes ence.” Mahajan is, in many ways, echoing the philosophy better answers to economic development. The pandemic loans rather than infusing hard cash PROPOSED TO UNVEIL back to that.” Piyush Goyal, the Union propounded by the SJM’s founder, the late Dattopant only sharpened that distrust, with every country waging benefits directly to the needy as many minister of commerce and railways, Thengadi. In his book, The Third Way, Thengadi wrote, its own battle to stem its spread. The other reason Guru- advanced countries had done (see ac- however, dismissed all fears of the gov- ‘Swadeshi is the outward practical manifestation of pa- murthy advances is: “When the prime minister began his companying reports). ernment turning protectionist. Speak- triotism. Patriotism is not considered isolationism nor are first term, he hadn’t attained the kind of stature he now Yet despite the complaints, the prime minister’s ad- ing at a university event soon after, he clarified, “Self-reli- patriots against internationalism. Their pleas for national has on the global stage: a confident, mature world leader dress sent out three major signals on how he plans to ance is about working and engaging with the world from self-reliance are not incompatible with internationalism backed by the importance of India’s economic growth.” conduct the twin battles of containing the coronavirus and a position of strength. It’s about your own self-confidence, provided the latter is on equal footing with due regard to Those who work closely with Modi say nothing he says reviving the flailing Indian economy in the months ahead. that you are not dependent or overly-dependent on the the national respect of every country.’ or does is casual or impulsive—there is much deliberation On the health front, he indicated that India would have to rest of the world. It’s about the confidence of the nation and consideration behind his every move. The process learn to live with COVID-19 and that it was imperative to that you can produce quality products in a cost-effective ccording to S. Gurumurthy, editor of of formulating both a relief and reform package, india resume economic activity. As he put it: “Ladenge bhi aur manner, that you can compete with anybody in the world Thuglak and a key Sangh ideologue, the today learns, had been in the works for weeks even as the badhenge bhi (We will fight, and we will grow).” When it even with the disadvantages we face.” swadeshi model of development holds pandemic raged on. To his credit, Modi had sensed that came to relief, he made it evident that there would be no The Sangh Parivar affiliates india today spoke to that “there has to be a cultural underpin- coronavirus would emerge as a threat in January itself, free lunches for anyone except the truly needy and the gov- were vehement that they were not going down the path A ning to economic development unlike the soon after the World Health Organization had first noti- ernment would instead fund measures that would encour- Nehru and Indira Gandhi followed. Ashwani Mahajan, western model that insists on one size fits fied the virus outbreak on January 5. When he first men- age sustainable growth. Most importantly, by enunciating convenor, Swadeshi Jagran Manch (SJM), which wields all”. So, why did Modi require a pandem- tioned the virus at a cabinet meeting, Nitin Gadkari, his the goal of self-reliance, the prime minister signalled a considerable influence in government policy-making, ic to launch the swadeshi model and not do so in his first colleague, recalls that most of them didn’t take the threat fundamental resetting of his government’s economic said, “The RSS had consistently opposed the Congress de- term itself? Gurumurthy suggests two reasons. Globalisa- too seriously but weeks later would acknowledge to Modi vision to meet the challenges posed by a Covid-stricken pendence on the public sector in the initial 40 years after tion, he says, works only if there is mutual trust between that he was spot on. world where no one knows how long the pandemic will Independence and was even against bank nationalisation. nations, but has been in retreat in the past decade or so As early as January 25, Modi got his principal secre- last and when life will return to normal. The fact is, after its model failed, the Congress did not fall because the distrust between nations, particularly after tary, Dr P.K. Mishra, to convene an inter-ministerial meet- Self-reliance is a vision that has always been in conso- back on domestic private entrepreneurship to deliver but the 2008 economic meltdown, made it unsustainable. ing of officials from the external affairs, home, health and

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civil aviation ministries to assess the threat of coronavirus RESOLUTE REFORMER and take precautions. It helped that Mishra, a Gujarat-cadre From the infrastructure push to simplifying the tax regime to overhauling the banking system, officer, came with vast experience in handling disasters and Prime Minister Narendra Modi’s tenure has witnessed some big-ticket economic reforms calamities. Modi had entrusted him with ensuring that Kutch was rebuilt after the devastating earthquake of 2001. Mishra also helped formulate the National Disaster Manage- ment Act in 2005 when he was in the Union government. And it is learnt that he advised Modi to use the act to declare a national lockdown rather than the outdated Epidemic Diseases Act, 1897. Modi’s decision to impose a peremptory lockdown on March 24, giving the public a mere four-hour notice, came GOODS & SERVICES TAX: The single indirect tax, after his top health advisors said that there were signs that merging 17 levied by the state as well as the Centre, the disease was about to reach the community transmission came into effect in2017 . GST not only moved India to an stage. Given India’s poor healthcare infrastructure, this was a BLACK MONEY: PM Modi’s ten- DEMONETISATION: The Modi DIRECT BENEFIT integrated tax jurisdiction but also simplified taxation for national tragedy waiting to happen if the prime minister did ure has seen five big moves against government’s surprise decision, TRANSFER: The move to dis- entrepreneurs. The execution of GST has gone through not act with urgency. Once the lockdown was in place, Modi black money: the Black Money and on Nov. 8, 2016, to declare Rs 500 burse all welfare scheme benefits teething troubles, but it is gradually finding its groove. got down to striking a fine balance between lives and liveli- Imposition of Tax Act (2015); the and Rs 1,000 notes null and void directly to the bank accounts of hood. He got Sitharaman to announce a slew of relief mea- Income Declaration Scheme and PM achieved limited success. The RBI beneficiaries has meant substan- sures for the poor and farmers soon after. The Reserve Bank Garib Kalyan Deposit Scheme (both reported that over 99 per cent of tial savings for the exchequer. In BOOST FOR FDI: INSOLVENCY AND of India (RBI) also stepped in to bail out business by easing in 2016), aimed at disclosure of the demonetised currency eventu- other expenditure reforms, the Since September 2016, BANKRUPTCY CODE the terms of credit and flushing the system with liquidity. The unaccounted-for incomes; the Be- ally returned to the banking system. Union budget was advanced by India has opened up (IBC): Notified in2016 , lockdown, however, had one serious repercussion. Not only did nami Transactions (Prohibition) Act Demonetisation squeezed cash out a month and the railway budget foreign direct invest- it codified insolvency the blocking of interstate movement of essential services lead (2016); and rigorous tax surveys/ of the economy, hitting micro and merged with it. This has expe- ments in almost all sec- resolution processes for to widespread disruption, urban areas began seeing an exodus searches. Modi said in Aug. 2017 small enterprises and the country’s dited the movement of funds as tors. To cut red tape, individuals and companies of migrants that tore the nation’s heart. Mishra discussed the that black money worth Rs 1.25 lakh informal sector hard and caused ministries can start planning for the Foreign Investment and made the process issue with Modi, and he cleared the formation of 11 empow- crore had been unearthed. widespread job losses. the expenditure from April 1. Promotion Board (FIPB) time-bound. IBC has made was abolished in 2017 it easier for lenders, such ered groups of secretaries and experts to execute a medical and the respective as banks and other financial emergency plan apart from ensuring free movement of vital ministries were made institutions, to liquidate col- goods and delivery of relief measures. It worked. REAL ESTATE REFORMS: nodal agencies. Things, laterals to recover debt and Though introduced by the however, slowed down broken corporate houses’ s for the logjammed economy, the prime UPA government in 2013, the in some sectors under habit of seeking ever- minister and his cabinet colleagues began Real Estate (Regulation and the pressure of domes- greening of debt. widespread consultation on how to kick- Development) Bill was passed tic lobbies. start economic activity. Modi believed that by Parliament under the Modi MERGERS OF PSU A a financial stimulus package apart, the gov- government in 2016. The law ernment should use the opportunity to in- aims to protect consumers, PROMPT COR- BANKS: It all began with RECTIVE ACTION the merger of the State troduce major reforms. As Mishra said, promote fair play in real estate “The basic distinction the prime minister wanted to make, CODIFYING LABOUR LAWS: FRAMEWORK: In Bank of India and its as- deals and ensure timely execu- as compared to other countries, was that we should go be- Industry has always been ap- 2017, a comprehensive sociate banks in 2017. On tion of projects. yond relief and firefighting measures. That, with globalisa- prehensive of the maze of labour plan was put in place Apr. 1, 2020, 10 PSU banks tion in retreat and rising protectionism, India should work legislation. In 2019, the Modi to clean up the books were merged into four towards bringing about major reform where we reduce our government announced four codes of public sector banks large entities, bringing the INFRASTRUCTURE PUSH: ing the methods of allocation of dependence on other nations and at the same time occupy to streamline central labour laws. reeling under mounting number of state-owned Roads, highways and railway have highway projects and cutting down space that may open up internationally for exports.” While the Code on Wages has been non-performing assets. banks to 12 from 27 in 2017. seen big reforms since 2015. The risks to make projects more viable. The finance ministry was asked to prepare a package of enacted, the other three—on Indus- Their asset quality Bigger banks are not only measures include restructuring of Though railways still faces issues relief and reforms in mid-April, but the PM wanted more trial Relations, Social Security and and operations were operationally more efficient the Railway Board, redefining the related to availability of funds and wide-ranging changes. The PMO then convened over half Occupational Safety—are with the closely monitored and but are also better-placed financial models and streamlining slow decision-making, overall, in- a dozen meetings with secretaries of key sectoral ministries standing committee of Parliament. cleaned up. to fund mega projects. project implementation, rework- frastructure is back on a trajectory. to hammer out major reforms that could be executed. These —Compiled by Anilesh S. Mahajan

20 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 21

CS-Lead Essay-May25.indd 20-21 5/16/2020 4:21:51 AM COVER STORY LEAD ESSAY

20 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 21

CS-Lead Essay-May25.indd 20-21 5/16/2020 4:21:51 AM PANDEMIC PAINS PM Narendra Modi, with COVER STORY LEAD ESSAY his cabinet members, discusses the COVID-19 situation with chief ministers, via video link

ministries had earlier been in touch with stakeholders to reduce their dependence on China, it will have to ramp gather their viewpoint. Industries secretary Guruprasad up its infrastructure, lower costs and improve the ease Mohapatra says there was frenetic activity behind the scenes of doing business while ensuring continuity in policy to to focus on around a dozen key sectors rather than “trying win the confidence of global investors. In Budget 2020, to be a leader of everything”. There was also a major exer- Sitharaman said that the government was willing to spend cise to map states according to their competitive advantage Rs 20 lakh crore annually for the next five years to ramp in sectors to aid the investment decisions of businesses. up infrastructure. These projects now need to be taken up The effort, Mohapatra says, was to ensure that “all states post haste to boost employment and give a positive demand compete with each other and some emerge as champions in push to the economy. particular sectors”. However, to bring about reform across the nation will Individual ministries were told to firm up their plans in be difficult in the short run. Commerce secretary Anup key sectors and present them to the government. The phar- Wadhawan talks of “building pockets of excellence where maceutical sector in India, for instance, is highly dependent you mimic the best environment in the world so that the on China, Europe and the US for what are known as Active investor cannot distinguish whether he or she is in a de- Pharmaceutical Ingredients (API), the raw material used veloped country or a developing one”. This entails creating in manufacturing drugs. Seventy per cent of API imports platforms with state-of-the art infrastructure and logistics come from China alone, at a cost of $2.5 billion. For the While the one on the Wages Bill has been passed, the other time is ripe for reforms across the board to attract industry. either close to a port or a major railway junction. Instead of past year, the Centre has been working with states like Hi- three—on Occupational Safety, Industrial Relations and As he points out, “Electricity rates are higher than those of the old Special Economic Zones (SEZs) that failed to take machal Pradesh, Assam, Telangana and Andhra Pradesh Social Security—are pending with the standing committee other countries; we charge highly for land, manufacturing off for various reasons, what can be built are competitive to set up API industrial parks so that India can become of the Lok Sabha. Several opposition parties are objecting is taxed heavily compared to other countries, apart from economic zones that permit manufacturers to export their self-sufficient. These will now get an additional push under to its clauses and with the BJP still not in a majority in the stifling labour laws. All these need reform.” products, amortise the benefits they are availing from the Modi’s self-reliance mission. Rajya Sabha, it will have to persuade some other parties to Telecom is a good example of how the Modi government zone and allow them to sell to domestic consumers as well. endorse the government’s stand. Mean- introduced a slew of policy incentives in And rather than the government setting et, pushing through re- while, three BJP-ruled states—Gujarat, 2014 to invite leading manufacturers up such zones, they can be given out to form in India, as even Uttar Pradesh and Madhya Pradesh— to set up base in India and sell products private concessionaires to develop and Modi has realised, is an TO WOO COMPANIES were nudged by the Centre into announc- both domestically and as exports. That FOR THE SELF- maintain as is being done for airports uphill task. In his first LOOKING TO REDUCE ing major labour reforms to prepare the saw a dramatic turnaround of fortunes, across the country. Y term, while reforms ground for its passage in Parliament. On with over 260 companies setting up RELIANCE CAMPAIGN Experts say there are three fac - such as a unified goods DEPENDENCY ON liquidity, the government and the RBI shop. Handset production grew from TO SUCCEED, THE tors that will determine whether the and services tax and a have worked in tandem to infuse an ex- 58 million in volume and Rs 18,900 government can make a success of its banking code were implemented, other CHINA, INDIA WILL cess amount of funds at cheaper interest crore in value in 2014 to 290 million in GOVT SHOULD ALLOW self-reliance campaign. The first is initiatives, like the Make in India scheme, HAVE TO RAMP UP ITS rates. Although with industry on its knees volume and Rs 1.7 lakh crore in value in THE MARKETS AND short term—ensuring that the fiscal failed to make even a dent. Though he has INFRASTRUCTURE, and bankers still cautious about lending 2018. Exports of mobile phones touched stimulus lifts industry out of its current yet to fully unveil the contours of his At- money, production will have to restart for Rs 11,200 crore in 2018. Determined INVESTORS TO MAKE morass, spending more if necessary. manirbhar Bharat Abhiyan, Modi in his IMPROVE EASE OF the move to have any effect. that India should be a world leader THE CHOICES AND GET It is, however, a Catch-22 situation, May 12 speech outlined that it would DOING BUSINESS AND The key to ensuring the success of in this sector, Modi has set a target with diminished revenue collections rest on five pillars—undertaking quan- the self-reliance campaign, however, re- of touching Rs 14 lakh crore by 2025 THE HEAVY HAND OF squeezing financial room even fur - tum reforms for economic growth, world- ENSURE CONTINUITY mains the country’s ability to ramp up through a system of incentives for BUREAUCRACY OUT ther. While there has been a sensible class infrastructure, leveraging India’s IN POLICY production capabilities to meet the huge manufacturers. The government now and clever balancing of government demographic advantage, harnessing cut- domestic demand for goods and services. cites the development of this sector as OF THE WAY funds to be disbursed as part of the ting edge technology and generating de- With India’s per capita income still at a proof that the self-reliance policy is not fiscal stimulus, the government will mand. He also talked of focusing on the low base of $2,000, compared to China inconsistent with the plan to become have to breach its fiscal deficit target four Ls of production—Land, Labour, Liquidity and Laws. $10,000, there is plenty of scope for improvement. Gross the supply chain of the world in particular sectors. Pankaj to meet the crisis. Secondly, the government will have to Each of these involves a series of obstacles and tough capital formation in the country as part of GDP is now Mohindroo, chairman, Indian Cellular and Electronics desist from micromanaging economic growth and allow decision-making. With land being a state subject, Modi faced around 30 per cent. If the country has to raise it to 32 per Association, cautions that India should be balanced about markets and investors to make their own choices instead, stiff resistance from states when he tried to enforce a land cent to boost production capabilities, it needs close to $900 its self-reliance policy because, as he says, “For us to grow, while keeping the heavy hand of bureaucracy out of the acquisition act in his first term, forcing him to shelve the billion in investment. With current foreign direct invest- domestic demand is just not enough. Indian manufactur- way. Finally, our success will depend on how well India plan. His focus since has shifted to having model land leasing ment being only around $60 billion annually, the bulk of the ers will have to seek global pastures to sell their products is able to contain the spread of the pandemic in the com- laws and for states to develop land parks to attract industry. investment will have to come from domestic investors. That and that would mean a give-and-take policy to be part of ing months by keeping it at manageable levels. Another With regard to labour, his government has already moved a requires a dramatic improvement in the investment climate. the global value chain.” major lockdown would undo the best-laid plans of any legislation reducing the 44 labour laws to a set of four codes. Amitabh Kant, the CEO of NITI Aayog, believes that the If India has to woo foreign companies who want to government in the world. n

22 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 23

CS-Lead Essay-May25.indd 22-23 5/16/2020 4:22:05 AM PANDEMIC PAINS PM Narendra Modi, with COVER STORY LEAD ESSAY his cabinet members, discusses the COVID-19 situation with chief ministers, via video link

22 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 23

CS-Lead Essay-May25.indd 22-23 5/16/2020 4:22:05 AM DECODING COVER STORY COVID-19 ECONOMY THE ECONOMIC STIMULUS The government has set the ball rolling with its announcement of a Rs 20 lakh crore is often said that one should stimulus. What remains is everything else never waste a good crisis, By M.G ARUN and SHWWETA PUNJ since every crisis also offers IT an opportunity for a creative response. For the government, the COVID-19 pandemic, disastrous as it may be, has also present- ed an opportunity to implement some bold economic reforms. And Prime Minister Narendra Modi did seem to grab that opportunity on the 49th day of the nationwide lockdown. But the question remains: will the Rs 20 lakh crore stimulus put India back on a growth and development trajectory, or will the prime minister’s ‘Aatma Nirbhar Bharat’ pitch, of taking India towards a robust self-reliance, prove to be rose-tinted optimism?

On May 12, the prime minister announced a stimulus package of Rs 20 lakh crore, which had two key objectives—to provide immediate succour to individuals and firms impacted by the lockdown, and to prepare Indian companies, specifically those in the micro, small and medium enterprises (MSME) sector, to take advantage of new manufacturing opportunities in the post-pandemic world. The prime minister said that the stimulus package amounted to 10 per cent of India’s Rs 200 lakh crore economy, but admitted that it included recent monetary measures taken by the Reserve Bank of India (RBI) to improve liquidity. “This package will give a new impetus to the development journey of the country in 2020, and a new direction to the self-reliant India campaign,” Modi said in his fifth address to the nation since the lockdown was first announced. At roughly $266 billion—on paper—India’s stimulus package is one of the largest in the world after the US’s (13 per cent of its GDP) and Japan’s (21 per cent of its GDP). While the prime minister left it to finance minister Nir- mala Sitharaman to spell out the details, the larger message was clear. It was time to rewrite the rules of the game for the post-COVID-19 world. The strategy to make India ‘self- reliant’ rests on five pillars. The first point of intervention BELLY UP is the economy—the government has vowed to bring about A sugar mill closed due to structural changes in land and labour laws and regulations, the lockdown, 30 km outside Pune, Maharashtra MAY 25, 2020 INDIA TODAY 25

CS-Economy-May25.indd 24-25 5/15/2020 11:01:07 PM DECODING COVER STORY COVID-19 ECONOMY THE ECONOMIC STIMULUS The government has set the ball rolling with its announcement of a Rs 20 lakh crore is often said that one should stimulus. What remains is everything else never waste a good crisis, By M.G ARUN and SHWWETA PUNJ since every crisis also offers IT an opportunity for a creative response. For the government, the COVID-19 pandemic, disastrous as it may be, has also present- ed an opportunity to implement some bold economic reforms. And Prime Minister Narendra Modi did seem to grab that opportunity on the 49th day of the nationwide lockdown. But the question remains: will the Rs 20 lakh crore stimulus put India back on a growth and development trajectory, or will the prime minister’s ‘Aatma Nirbhar Bharat’ pitch, of taking India towards a robust self-reliance, prove to be rose-tinted optimism?

CS-Economy-May25.indd 24-25 5/15/2020 11:01:07 PM COVER STORY COVID-19 ECONOMY BREAKING TODAY SIBTAIN/MAIL QAMAR IT DOWN THE BIG THE TARGETED RELIEF MEASURES as well as to improve liquidity to kindle 200,000 firms, including those with ANNOUNCED BY FINANCE MINISTER growth. Stuck as it was at around a 5 outstanding loans that are classified PICTURE NIRMALA SITHARAMAN ON 13-14 MAY per cent growth rate even before the as non-performing assets or stressed, lockdown, the economy will now, in ` and a Rs 50,000 crore equity infusion all likelihood, see a contraction in the for MSMEs through a fund of funds, 20 SMALL BUSINESSES NBFCs short term. It remains to be seen how LAKH CRORE set up with Rs 10,000 crore corpus, the government first gets Indian com- or 10% of GDP, the size among others (see Breaking It Down). Measure: Rs 3 lakh Measure: Reclassifica- Measure: Rs 30,000 crore special liquidity scheme panies back on their feet, before chis- of the economic stimulus, One of the long-standing concerns crore collateral-free tion of MSMEs (service & for NBFCs, housing finance companies and microfi- elling their competitiveness to make according to the government of the MSME sector has been the lack loans for MSMEs, 100% manufacturing) nance institutions; investment will be made in both pri- and market products for India and the of credit. Often, banks seemed to shy credit guaranteed Micro: investment

26 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 27

CS-Economy-May25.indd 26-27 5/15/2020 11:01:52 PM COVER STORY COVID-19 ECONOMY BREAKING TODAY SIBTAIN/MAIL QAMAR IT DOWN THE BIG THE TARGETED RELIEF MEASURES as well as to improve liquidity to kindle 200,000 firms, including those with ANNOUNCED BY FINANCE MINISTER growth. Stuck as it was at around a 5 outstanding loans that are classified PICTURE NIRMALA SITHARAMAN ON 13-14 MAY per cent growth rate even before the as non-performing assets or stressed, lockdown, the economy will now, in ` and a Rs 50,000 crore equity infusion all likelihood, see a contraction in the for MSMEs through a fund of funds, 20 SMALL BUSINESSES NBFCs short term. It remains to be seen how LAKH CRORE set up with Rs 10,000 crore corpus, the government first gets Indian com- or 10% of GDP, the size among others (see Breaking It Down). Measure: Rs 3 lakh Measure: Reclassifica- Measure: Rs 30,000 crore special liquidity scheme panies back on their feet, before chis- of the economic stimulus, One of the long-standing concerns crore collateral-free tion of MSMEs (service & for NBFCs, housing finance companies and microfi- elling their competitiveness to make according to the government of the MSME sector has been the lack loans for MSMEs, 100% manufacturing) nance institutions; investment will be made in both pri- and market products for India and the of credit. Often, banks seemed to shy credit guaranteed Micro: investment

26 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 27

CS-Economy-May25.indd 26-27 5/15/2020 11:01:52 PM TOOLS DOWN THE PRICE FEAR COVER STORY COVID-19 ECONOMY LIVING ON Job losses from the lockdown Inflation may rise if post-lock- have hit rural and urban India alike down demand exceeds supply

UNEMPLOYMENT (%) 8 THE EDGE CPI (%) 25 7 WPI (%) India Urban Rural The challenge of the new schemes will be in delivery. boost demand for affordable housing. “The extension of WITH KEY ECONOMIC 6 20 All commodities The whole process of passing on credit to MSMEs will CLSS should see demand for another 250,000 affordable INDICATORS POINTING TO DEEP 5 DISTRESS ACROSS SECTORS, get delayed if banks raise hurdles. Moreover, since only a homes,” says Niranjan Hira nandani, MD of the Hiranan- 4 THE STIMULUS PACKAGE WAS 15 fraction of MSMEs are listed with EPFO, the EPF relief dani Group. “This should create demand for construction 3 URGENTLY REQUIRED would not necessarily address the current pain points of material and provide jobs.” 10 2 MSMEs, specifically in paying salaries, interest on loans 1 and utility bills. Although MSMEs had been demanding READING THE FINE PRINT 5 0 a bailout package, through the credit guarantee scheme, The devil, as always, is in the details. One instant red flag Mar. 2019 Mar. 2020 0 the government has taken over the credit risk of MSMEs, raised by analysts cynical of the stimulus package is that INDIA GDP GROWTH CPI: Consumer Price Index May 2019 Apr. 2020 which might work out better for them in the long term. the actual additional stimulus will be much less than Rs RATE PROJECTIONS WPI: Wholesale Price Index However, the flip side of the scheme is that a 100 per cent 20 lakh crore, and there are varying estimates of how (2020-21) (in %) guarantee removes the incentive for the borrower to repay much the government will actually spend. For instance, SAVING GRACE International MONEY and for the lender to do the necessary due diligence. Barclays has said earlier announcements by the finance Plunging oil prices are a Monetary Fund 1.9 Yet another set of announcements made by the fi- minister and the RBI—the Rs 1.7 lakh crore safety net and FLOWS OUT breather for India’s import bill nance minister was regarding providing a Rs 30,000 the liquidity injection by the RBI announced in March— Overseas portfolio investors are World Bank 1.5 - 2.8 80 crore special liquidity scheme for non- account for Rs 9 lakh crore, leaving Rs pulling out of India for safer havens banking financial companies (NBF- 11 lakh crore of new announcements. Goldman Sachs 0.4 70 Cs), housing finance companies and JP Morgan estimates that earlier an- Jan. 2020 Moody’s 0 60 microfinance institutions (MFIs), a nouncements total Rs 6.7 lakh crore, 2,415 Rs 45,000 crore partial credit guar- THOUGH ESTIMATES leaving Rs 13.3 lakh crore. Accord- Standard & Poor’s 1.8 CRORE 50 CRUDE Apr. 1-9 antee scheme for the liabilities of ing to Sabnavis, the announcements 40 OIL Asian Development 2020 NBFCs and MFIs, and a Rs 90,000 VARY, THERE IS on May 13 amount to Rs 6 lakh crore, 4 Mar. 2020 (Indian Bank 30 Feb. 2020 9,103 basket) crore liquidity injection for power BROAD CONSENSUS with another Rs 7 lakh crore account- 1,10,000 CRORE distribution companies (discoms), ed for by the safety net and the RBI’s Nomura -5.2 1,172 CRORE 20 ($/bbl.) among others. Sanjiv Bajaj, chair- AMONG EXPERTS moves to increase liquidity. Another CRORE Fitch 0.8 10 man and MD of Bajaj Finserv, says THAT THE ACTUAL economist, not wanting to be named, Apr. 2019 Apr. 2020 the measures will particularly help estimates that of the Rs 6 lakh crore Sources: CMIE, RBI, MoSPI Source: BT Research smaller NBFCs. The Rs 30,000 crore STIMULUS IS WELL announced on May 13, the govern- special liquidity scheme for NBFCs, ment’s actual fiscal cost will be less housing finance companies and MFIs UNDER Rs 20 than Rs 50,000 crore. “This is maxi- HOW VULNERABLE IS OUR WORKFORCE? enables these institutions to borrow LAKH CRORE mum bang for the buck. This is a pack- Lockdown-induced job uncertainties have millions in a bind across key sectors more from the market, increasing age that industry and markets won’t LOW MEDIUM HIGH downstream credit. And as this is a like because it is supply side-focused Self-employed guarantee, there is no major impact and everyone wants free money. But AGRICULTURE SERVICES TRADE INDUSTRY CONSTRUCTION Casual labour on the government’s fiscal deficit. However, he points out now everything is your contingent liability,” he said. (205.3 MN) (144.4 MN) (46.9 MN) (115.3 MN) (54.3 MN) Regular wage/ a looming problem: “We will need to bring back migrant “The fiscal cost of the package to the central exchequer % % salary 73 43 % 26% workers to get MSMEs started.” Mishra, however, does is limited to Rs 16,500 crore (of the Rs 6 lakh crore),” says 26 Workforce size % not believe that the two schemes together, aiming to pro- D.K. Srivastava, policy advisor at EY. “Most of it is from 6% 26 11% in brackets % vide Rs 75,000 crore of liquidity to NBFCs, will be very the credit liability scheme, and is not likely to be invoked 5 Source: Crisil; 1% % successful. The reason for this is that the special purpose in the current year.” The government can also up its bor- 4 PLFS 2017-18 vehicle that is to provide liquidity to NBFCs provides rowing. It has already raised its borrowing target for the 26% 51% 70% 48% 84% funds for three months at a time, and while this may be current financial year to Rs 12 lakh crore from Rs 7.8 lakh enough to prevent NBFCs from defaulting, it may not be crore estimated in the budget, which would take the fiscal ELECTRICITY & OTHER MINING & ACCOMMODATION WATER SUPPLY SERVICES QUARRYING MANUFACTURING TRANSPORT & FOOD SERVICES sufficient to help them grow in the long term. deficit from 3.5 per cent to 5.5 per cent. “They have not an- (2.7 MN) (65.9 MN) (1.9 MN) (56.4 MN) (22.9 MN) (8.7 MN) Firms in the real estate sector have also been given nounced any major fiscal stimulus; they have room to do % % 43 % % some reprieve. While the relaxation of compliance time- so,” adds Srivastava. “The direction that the government 16 21% 42 43.5 58% lines under RERA gives breathing space to developers is taking is okay, but the size of intervention is not okay.” 6% 4% 32% 7.5% whose projects have been frozen by the lockdown, the There has also been criticism of the government’s de- 42% 12% one-year extension of the credit-linked subsidy scheme cision to announce both its fiscal interventions and the 10% (CLSS)—which subsidises home loans taken by urban RBI’s monetary measures as a single stimulus package. 78% 75% 49.5% 16% 44.5% residents below an income threshold—is expected to This is because these two mechanisms work in different

Graphics by TANMOY CHAKRABORTY

28 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 29

CS-Economy-May25.indd 28-29 5/15/2020 11:02:24 PM TOOLS DOWN THE PRICE FEAR COVER STORY COVID-19 ECONOMY LIVING ON Job losses from the lockdown Inflation may rise if post-lock- have hit rural and urban India alike down demand exceeds supply

Graphics by TANMOY CHAKRABORTY

28 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 29

CS-Economy-May25.indd 28-29 5/15/2020 11:02:24 PM AGRICULTURE COVER STORY COVID-19 ECONOMY

ways—the former by actual expenditure or a reduction in the situation we are in, the outlook is uncertain,” says taxes, and the latter by increasing the supply of credit or Sanjiv Chadha, MD & CEO of the Bank of Baroda, India’s money. “[No other country] combines fiscal and monetary third-largest public sector bank. “Bank balance sheets are policy as one,” says N.R. Bhanumurthy of NIPFP (National stretched, we are facing issues of asset quality and access Food Institute of Public Finance and Policy). He estimates that to the capital market is limited—we have no choice.” the fiscal stimulus alone would come to about Rs 6-7 lakh crore, or about 3 per cent of GDP. In effect, the government BUILDING SELF-RELIANCE

Security KUMAR CHANDRADEEP isn’t paying much out of pocket, which suggests three Even as it addressed the pain across various sectors, the scenarios—either it is constrained by budgetary realities Modi government has declared its ambition of exploiting (GST collections are expected to be significantly hit), or it this disruptive period to set the stage for a more self-re- n May 15, finance Credit Card scheme is to be of acquiring 11.29 MT of the Garg, a procurement agent is holding back some ammunition for the future, or both. liant and globally competitive Indian industry. The gov- minister Nirmala increased by 25 million farm- season’s paddy crop. To meet at Monak mandi in Punjab’s ernment’s original ‘Make in India’ initiative had flopped, Sitharaman spelt ers, allowing them access ration-distribution targets, Sangrur. “We [had to] rope MIXED MONETARY RESULTS thanks to a barrage of policy delays and bureaucratic O out the govern- to a Rs 2 lakh crore pool of the FCI has been transporting in MNREGA workers,” says Since the beginning of the lockdown, the RBI has taken a hurdles. In a post-COVID-19 world, where countries ment’s vision for the agri- concessional loans, with ad- grain across India at a record Vishwajeet Khanna, addi- number of steps to improve liquidity. One such was per- would be looking inward and possibly raising barriers to culture sector—new infra- ditional support of Rs 30,000 pace. In the first half of April, tional chief secretary in the mitting banks to offer consumers three-month moratori- trade, the new approach of ‘self-reliance’ may be just what structure, the setting up of crore for crop loans via NA- average daily transport in- Punjab government. ums on loan payments, announced on the doctor ordered. “The pandemic is clusters of food-processing BARD (the National Bank for creased from 80,000 tonnes Many states also imple- March 27. The central bank has also [raising] barriers everywhere,” says micro-enterprises across the Agriculture and Rural Devel- to 140,000 tonnes. The clear- mented staggered marketing, infused Rs 1.12 lakh crore in liquid- Arun Maira, a former member of the country, as well as strength- opment). On access to food, ing of the FCI’s stock will also under which farmers require ity into the banking system through Planning Commission. “We need to ening the network of ag- Sitharaman said ration cards allow rice mills in Punjab and appointments to visit mandis. long-term repo operations alone since ONE REASON WHY build for the domestic market.” That gregators, farmer-producer are to become portable, us- Haryana to start their milling Punjab also initially tried limit- the start of the lockdown, among plan, he said, hinged on boosting associations, agriculture so- able anywhere within India. cycles early, by mid-June. ing how much farmers could other interventions. However, these BANKS REMAIN the backbone of our economy—the cieties, etc. A fund has been Related developments—like transport in a single time measures have not been as success- MSME sector—as China has done. established with a corpus the Food Corporation of slot, while Haryana wanted ful as was hoped for. The increase in AVERSE TO In her media briefing, Sitharaman of Rs 1 lakh crore to develop India (FCI) fast-tracking the THE GOVERNMENT farmers to pre-register liquidity ‘has not led to a commensu- LENDING DESPITE clarified that becoming self-reliant infrastructure like cold-stor- procurement of Rabi crops their harvest sizes. These rate easing in financial constraints or did not mean that India would raise age chains and post-harvest and changes by states in the HAS ANNOUNCED measures were scrapped improved access to finance for many THE INCREASED barriers to international investors. management systems. procurement ecosystem—are RATION CARDS following protests. “The cap businesses’, noted Care Ratings in a LIQUIDITY IS But there is a clear sense that attract- Money will also be spent on also significant. WILL BECOME on transport quantity created report. ‘Banks continue to be risk- ing foreign investment is just not deepening infrastructure for The Union agriculture PORTABLE, USABLE unnecessary red tape,” says averse and credit dispersal remains THE ECONOMIC enough. “Just making things easy for fisheries and shrimp cultiva- ministry estimates national ANYWHERE Vijay Kalra, president, Fed- restrained. The surge in bank funds large foreign investors doesn’t help tion and improving livestock wheat production at 106.7 eration of Arthiya Associa- parked with the RBI (in the reverse UNCERTAINTY grow our economy nor does it help for milk and meat production. million tonnes (MT) this year, WITHIN INDIA tion of Punjab. In end-April/ repo facility) even at a low rate of re- grow jobs in our hinterland,” says Another focus is providing of which the FCI will acquire early May, states like Gujarat, turn bears testimony to that.’ Maira. “India should learn from the support to vegetables, fruits 40.7 MT. The Punjab govern- Uttar Pradesh and Madhya The RBI’s moratorium scheme failure of special economic zones, and and meat farmers, among the ment has already achieved Pradesh also opened up their has also had mixed results. While announcing its March- build zones completely de-linked from the existing indus- worst-hit by the lockdown. its wheat procurement target The lockdown has also markets to private players, quarter results, ICICI Bank stated that 32 per cent of its trial and labour laws, with just 2-3 pages of compliances Rs 500 crore will be spent of 13.7 MT. Other states are forced states to develop new with Karnataka also consid- loan book was under moratorium. For Axis bank, the and self-certification,” says Vinayak Chatterjee, chairman to rebuild supply chains for also on track to achieve their methods of procurement, ering similar changes. This number was between 25 and 28 per cent. Ratings agency of Feedback Infra. Certain states like Madhya Pradesh, these products. targets, including Madhya with Punjab, Madhya Pradesh will bring in new competition ICRA estimates that about 328 companies from across Uttar Pradesh, Rajasthan and Gujarat have already em- The announcements Pradesh (10 MT), Haryana and Haryana significantly and hopefully improve the sectors have applied for moratoriums. barked on a revamping of labour laws to make them more continued the initiatives (9.5 MT) and Uttar Pradesh increasing the number prices farmers receive. Fruit The implementation of the scheme has also seen con- attractive for investment. described on May 14, which (5.5 MT). The Rabi crop is of procurement centres. and vegetable farmers, who tention, with several small retail borrowers, microfinance With the announcement of the stimulus and some of included increasing farmers’ valued at about Rs 7.51 lakh Another challenge was the were hit particularly hard by companies and NBFCs complaining that some develop- its targeted measures, the government has set the ball roll- access to credit and schemes crore, with wheat contribut- lack of manpower, “making the lockdown, may find this to ment financial institutions such as SIDBI, MUDRA, ing on reviving the economy. But much remains to be done. to improve food security. ing the largest amount. The it impossible to do doorstep be a significant relief.n NABARD and a section of public sector banks were dis- The significant economic damage of the lockdown must be The coverage of the Kisan FCI is also in the process procurement”, says Gaurav ‑ Anilesh S. Mahajan criminatory in extending the scheme. addressed. Rejigging the economy for the post-pandemic One reason why banks, despite the increased liquid- world is no less challenging. Planning and announcements ity, remain averse to lending is the overall uncertainty in will not do the job—from this point on, what will matter the economy. “We are looking to do business, but given is execution and to put real money where the mouth is. n

30 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 31

CS-Economy-May25.indd 30-31 5/15/2020 11:03:02 PM AGRICULTURE COVER STORY COVID-19 ECONOMY

30 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 31

CS-Economy-May25.indd 30-31 5/15/2020 11:03:02 PM COVER STORY INTERVIEW NITIN GADKARI

Q. Does the ministry have any data on job losses and one; it had been pending for 14 years. The government MSMEs that had to shut shop due to the lockdown? has removed the distinction between manufacturing- A. No, we don’t have information on job losses yet. There and service-based MSMEs. Turnover is another measure won’t be loss of livelihood, because we have started work that has been added to define an MSME. So far, MSMEs ‘MSMEs on the NHAI (National Highways Authority of India), were defined on the scale of their investments. Now, a lot so people will find work there. The big problem is how of industries will be able to avail of the benefits. It will to pay labour when they are not working. Decisions on have a multiplier effect. WERE ABOUT the EPF (Employees’ Provident Fund) front, including reduction of EPF contribution from 12 per cent to 10 per Q. And not floating global tenders for government pur- cent for all establishments for the next three months, are chases up to Rs 200 crore? How will that help? TO DIE, OUR in addition to the [extension of the] scheme providing A. A global tender would attract international compa- for 24 per cent EPF support [by the government for an nies, but now that business will go only to MSMEs. This additional three months]. The government is doing away will give them the opportunity to get more business. PACKAGE with the earlier requirement of Rs 15,000 per month salary and firms with less than 100 employees to avail of the Q. Isn’t this move protectionist? Are Indian MSMEs up benefit. This will help 650,000 organisations and 43 mil- to the challenge of meeting cost and quality parameters? WILL ACT AS lion employees. This will benefit labour, the relief will be A. We are not less [than anybody in terms] of skills, engi- passed onto them [in the form of] salaries. neering or ability. People (businesses) are coming out of China, this is an opportunity for Indian MSMEs to get A BOOSTER Q. One of the issues we are facing today is the return of foreign investment and improve their own technology. migrants from the cities to their homes. How serious is the issue and do you think these measures address it? Q. MSMEs were hoping for assistance in paying salaries DOSE’ A. A lot of migrant labour comes from backward areas and utility bills... not out of want but out of necessity, because they don’t A. Their EPFO contribution [has been] waived, which have opportunities in their states. Fear is what drove peo- will free funds to pay salaries or utility bills. ple away. People thought they would die. They will return BANDEEP SINGH when things get better, I feel, because they don’t have Q. Is this a revival and reform package or a survival one? opportunities there. We have to learn the art of living A. We are fighting two fights, one against corona, and the with corona—washing hands, keeping one-metre dis- other for the economy. MSMEs will get a double benefit. Micro, small and medium enterprises (MSMEs) form the of crisis points, there was stress in the working capital of tance. We will have to implement it in factories. We have These measures are essential for survival. Even before lifeblood of the Indian economy. With the Covid pandemic banks; there was no money for salaries or for term loan to stick to the new hygiene guidelines. This is an artificial corona, there were issues, and these measures will make and the resultant lockdown pushing millions of India’s small instalments. The biggest problem was that industry virus that has been prepared in a lab. If we find a vaccine, India a superpower economy. You will see the difference businesses to the brink, the first tranche of Prime Minister and CPSEs (central public sector enterprises), to whom everyone will be free. But all our stakeholders—industry, in six months. Narendra Modi’s Rs 20 lakh crore package includes a slew MSMEs were supplying, collectively owed them over Rs 5 labour, customers—will have to learn to live with corona. of measures to support the sector that contributes nearly lakh crore. MSMEs were about to die. This is the first time Q. What do you think of the Rs 20 29 per cent to the country’s GDP. Even as the government that money will be paid to MSMEs in the next 45 days. It Q. Large companies can easily enforce lakh crore package announced by the takes on a massive risk of underwriting loans worth Rs 3 will be a huge boost to liquidity. social distancing, but small industry “FEAR IS WHAT prime minister? lakh crore, the announcement has evoked a mixed reac- will find it a constraint. A. It is a historic package. Everyone tion—while some economists have endorsed its ‘bang for Q. How will you ensure the cooperation of banks, which A. Conferences and meetings cannot DROVE PEOPLE is facing problems—state govern- the buck’, MSME bodies have expressed their disappoint- are risk-averse, in lending to MSMEs? happen anymore with people sitting in AWAY. THEY’LL ments don’t have the money to pay ment with the failure of the measures to address their A. Banks that give loans to MSMEs don’t take the risk. If close proximity. Shop floors will have salaries, the central government’s rev- immediate concerns. Group Editorial Director (Publishing) they give one lakh crore, we (the government) pay insur- to practise social distancing and small RETURN WHEN enue is dropping, labour is not getting RAJ CHENGAPPA and Deputy Editor SHWWETA PUNJ ance premium of Rs 1,500 crore. Banks give only 25 per industry will have to manage. THINGS GET paid. Atalji used to say hum kadam se spoke to Union minister of MSME and transport NITIN cent of the loan amount. We cover the rest 75 per cent. kadam mila ke aage badhenge (we will GADKARI to find out if the measures are aimed at survival Banks don’t give loans to MSMEs on their own risk; they Q. The definition of MSMEs has BETTER AS move forward together). PM Modi, in or revival. Excerpts from the interview: stand to gain from this (collateral-free credit scheme). changed and the government has also THEY HAVE NO the package, has given a lot more than Earlier, only nationalised banks could give these loans, decided not to invite global tenders in what is possible for a developing coun- Q. What’s the broader vision behind these measures? now NBFCs (non-banking financial companies), district government procurements up to Rs OPPORTUNITIES try like India. We have given a lot more Do you think the package addresses key crisis points? cooperative banks, urban cooperative banks, all have been 200 crore. How do these two measures than what richer and more powerful A. This will give a booster dose to MSMEs. Collateral- authorised to lend. Loan availability has gone up. This will benefit MSMEs? BACK HOME” countries have given. This package will free loans could benefit 4.5 million industries. In terms benefit the industry. A. The change in definition is a historic see us through [the corona crisis]. n

32 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 33

Gadkari Interview-May25.indd All Pages 5/15/2020 6:46:05 PM COVER STORY INTERVIEW NITIN GADKARI

32 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 33

Gadkari Interview-May25.indd All Pages 5/15/2020 6:46:05 PM COVER STORY COVID-19 HEALTH ARE WE READY? COVID-19 is not going away in a hurry. Eight weeks of the lockdown have helped us contain the spread of the virus, but it is still a long haul By SONALI ACHARJEE

s India reaches the cusp of a was focused on slowing the rate of transmission, to third lockdown only to prepare push our curve on a trajectory low enough for our sys- for Ver. 4.0, it is time to ask if tems to cope with. It had a clear purpose—slow down the move has accomplished the spread of infection and equip healthcare.” A what it was meant to and laid If we have indeed achieved the target, why Lock- the foundation for a future down 4.0? “To maintain the gains made in the past two strategy for COVID-19. When months. We cannot let infections get out of hand,” says Prime Minister Narendra Modi announced Dr Paul. It is almost certain that the Covid conventions of social distancing, hand hygiene and mask coverage the lockdown on March 24, India had 564 will continue into the next phase of the lockdown even Covid infections and 10 deaths. Worldwide, if restrictions on movement are gradually lifted. “We the global death toll had already crossed will continue to grow health infrastructure—the goal 10,000 and hospitals were fast running out is to build good hospitals: more beds, more ventilators, of beds and ventilators. Italy was grappling treatment facilities—and push for diagnosis as well as with 69,176 cases, the US 42,164, and the UK containment in red zones,” adds Dr Paul. Geo-tagging 8,077. Going by their experience, India knew Covid suspects through the Aarogya Setu app, drug it had no choice but to go into lockdown. If and vaccine research and public awareness campaigns the disease could overwhelm countries with are likely to be the other areas of increased focus, ac- healthcare systems far more cording to a health ministry official. sophisticated than ours, what “Our peak is expected in June chance did our fraught health- or July; we must continue being re- care infrastructure have? WE HAVE sponsible,” says Dr Randeep Guleria, director of the All-India Institute of Eight weeks into the lockdown, set SLOWED THE Medical Sciences in Delhi and member for further extension on May 18 with SPREAD OF THE of the empowered committee on hos- an entirely new set of rules, Dr V.K. pitals and disease surveillance. With Paul, member, NITI Aayog, and head VIRUS BUT CASES 70-80 per infections concentrated in of the empowered committee on medi- CONTINUE TO metropolitan cities, he advocates mi- WINDOW TO COVID The Kolkata cal emergency management, believes cro-planning in the 130 national red office of the Bengali dailyPratidin , it has made a difference. “Eight weeks EMERGE zones, particularly the congested ones. which has been converted into a temporary quarantine facility for ago, our doubling time was 3.4 days; “Tackling red zones will be a priority,” COVID-19 patients this week, it is 11-12 days. The lockdown he says. While states can choose the

Photograph by SUBIR HALDER MAY 25, 2020 INDIA TODAY 35

CS-Health-May25.indd 34-35 5/15/2020 3:11:27 PM COVER STORY COVID-19 HEALTH ARE WE READY? COVID-19 is not going away in a hurry. Eight weeks of the lockdown have helped us contain the spread of the virus, but it is still a long haul By SONALI ACHARJEE

Photograph by SUBIR HALDER MAY 25, 2020 INDIA TODAY 35

CS-Health-May25.indd 34-35 5/15/2020 3:11:27 PM WHAT HAS BEEN ACHIEVED WHAT COVER STORY COVID-19 HEALTH INDIA’S LOCKDOWN HELPED CONTAIN INFECTIONS AND DEATHS AS SHOWN BY A HURT COMPARISON WITH THE US, THE COUNTRY WORST HIT BY THE PANDEMIC 1,385,834 548 81,795 doctors, nurses and restrictions they want lifted in Lockdown 4.0 (West Bengal, the lockdown in phases. “What we do with the resources is INFECTIONS DEATHS DOUBLING paramedics infected for example, plans to divide a red zone in three categories also an important consideration,” says Dr John. Certainly, 28.5 TIME due to poor PPE supply to allow public movement), the greatest fear public health there is wide discrepancy in facilities and tests across states. India US India US officials have is that it is still too soon to reopen borders or At this juncture, it may be worthwhile to assess where India Days taken for cases to double allow public transport. stands in its fight against COVID-19 and its plans ahead. It is a valid enough fear. Ours remains an upward curve India 4,300 positive cases linked to US of infections. From May 10 to May 13, we saw around 3,500 ISOLATION AND ICU BEDS, VENTILATORS 557,071 a Tablighi Jamaat event cases a day. And even though the time taken for infections A small percentage of the afflicted eventually require critical 12 in Delhi sent numbers to double has come down, the infection rate—the number of care. Yet, ICU beds, oxygen-supported beds and ventilators

8.6 skyrocketing in April

21,952 7 those tested reporting positive—has gone up. On March 24, remain crucial because the care needed for patients with India had 564 infected people and an infection rate of 1.9 moderate and severe symptoms cannot be built up overnight. 3.4 42,164 68,462 2.4 per cent, or roughly two out of 100 people tested were Covid- On May 10, concerns of Mumbai running out of ICU beds 8,683 471 290 2,293 40,000- 564 10 positive. By May 13, total cases were 74,280 and the infection sent panic bells ringing. “Some central resources were not Week 1 Week 4 Week 8 Week 1 Week 4 Week 8 Week 1 Week 4 Week 8 rate 4 per cent. Hotspots like Mumbai have an infection rate being used,” says Dr Paul. “These issues are being handled on 50,000 as high as 15 per cent. India, thus, is still a long way off from an urgent basis. The severe stage of Covid can only be treated migrants moved back Covid’s downward trajectory in South Korea, Italy or China. in an ICU.” According to Dr Richa Narang, an ICU anesthe- INFECTION RATE % DEATH RATE % TESTS PER MILLION home from urban Community transmission also continues to be a threat. siologist at the Lok Nayak Jai Prakash Narayan Hospital in centres in over- India US India US India US An April 9 study by the health ministry and the Indian Coun- Delhi, “We need ICU beds not just for oxygen support but crowded buses cil of Medical Research (ICMR) had already hinted at com- for monitoring critically-ill patients.” The biggest change to 20.83 5.57 17 143 1,267 20.5 ` munity transmission in 36 districts across 15 states, as 40 ICU care since the start of the lockdown, she says, is “much 2,500 of the 105 Covid-positive SARI (Severe Acute Respiratory more support for a holistic ICU. Earlier, we had to wheel 15.25 3.79 Infection) patients were found to have no travel or contact patients to different rooms for different tests, now most of it ` history. More than a month down the line, the can be done in the ICU.” As on May 13, India 4.75 29,063 6,400 2.55 4.23 1.74 3.23 3.28 620 ICMR has begun a surveillance of 75 districts had 35,095 ICU beds, 60,000 oxygen beds 8,559 Cost of a PCR test in to determine community transmission. (to be increased to 100,000 in the next few Uttar Pradesh and at 1.1 It is imperative, therefore, that Lockdown THERE ARE WIDE weeks) and 15,692 ventilators. We still have Week 1 Week 4 Week 8 Week 1 Week 4 Week 8 Week 1 Week 4 Week 8 a private hospital in Mumbai, respectively 4.0 continue with an aggressive containment DISCREPANCIES a long way to go, but given the time and cost On January 30, when India reported its first case, the US had six confirmed cases strategy. “Are we sensitised and aware enough needed to set up new critical care facilities, to be responsible without a lockdown?” asks IN AVAILABILITY particularly with the country at a standstill, 13 noted virologist Dr Jacob John. “If we open OF MEDICAL this is a welcome start. FROM AN ABYSMAL START, INDIA HAS RAMPED UP EXISTING FACILITIES Tests per million restrictions, the public must not forget we are The real test for the healthcare system, conducted at the still at great risk. You cannot eradicate a virus SUPPLIES ACROSS however, is ensuring even distribution of start of lockdown; the so soon. What we can do is change behaviour facilities. Health is a state subject, even dur- TESTS DONE DEDICATED COVID ICU ISOLATION initial dependence on and prepare for infections.” STATES IN INDIA, ing a biological emergency, and deficien- HOSPITALS BEDS BEDS thermal scanning led Preparing for infections is precisely WITH REPORTS OF cies in state bed capacities are an area of MAR. 24 MAR. 1 MAR. 12 MAR. 12 to infection spreading where the government has focused its ener- concern. Twelve states—Bihar, Jharkhand, through asymptomatic gies till now. By May 13, the country had SHORTFALLS Gujarat, Uttar Pradesh, Andhra Pradesh, 22,440 0 11,752 1,05,890 carriers (17 tests per 1,025 dedicated Covid hospitals and 351 labs Chhattisgarh, Madhya Pradesh, Haryana, million) MAY 13 MAY 13 MAY 13 with the capacity to conduct 90,000 tests a Maharashtra, Odisha, Assam and Mani- day from one lab on March 1. From 105,890 isolation beds pur—which account for 70 per cent of India’s population had MAY 11 1,025 35,095 8,19,965 5,305 on March 12, two weeks before the lockdown, we had man- beds less than the national average of 0.55 beds per 1,000 Tests per million done in 1,673,688 aged to add another 714,075 by May 13; around the same people. Bihar, India’s second most densely populated state (1,267 tests Delhi, compared to only 312 tests per million time, ICU beds went up by 23,343 from the existing 11,752 after Maharashtra, has only 0.11 beds per 1,000. “For states per million) VENTILATORS PPE in Bihar, highlighting and ventilators by 9,368 from 6,324. Of the Rs 3,100 crore already dismally lagging in hospital infrastructure, a few varying test rates the government has allotted from the PM-CARES Fund to thousand extra beds won’t cover the shortfall,” says Prachi TESTING LABS MAR. 12 MAY 13 PRE-MAR. 24 between states COVID-19, around Rs 2,000 crore has been earmarked for Singh, associate fellow at research firm Brookings India. the purchase of ventilators and another Rs 100 crore toward While Rajasthan managed to add 3,000 ICU beds and 1,050 MAR. 1 MAY 13 6,324 15,692 47,000 (orders kits produced supporting vaccine development. A hundred thousand PCR ventilators during the lockdown, Maharashtra could add only

1 lab 351 labs placed for per year 500,000 test kits and 200,000 personal protective equipment (PPE) 1,500 ICU beds and 400 ventilators. In West Bengal, only with testing another poor quality rapid kits will soon be produced per day in India. 860 of the 5,677 ICU beds and 271 of the 2,838 ventilators are capacity of 49,000) MAY 11 test kits forced states These preparations by the central government have cer- functional. “You cannot plug all the shortcomings of an ig- 90,000/ day 200,000 depending on them to tainly offered some of the confidence needed to start lifting nored healthcare system in six or seven weeks,” says Dr John. kits per day rethink test strategies

36 INDIA TODAY MAY 25, 2020 * ICMR testing updates; MoHFW; The Covid Tracking Project USA; CDC Graphics by TANMOY CHAKRABORTY MAY 25, 2020 INDIA TODAY 37

CS-Health-May25.indd 36-37 5/15/2020 3:12:02 PM WHAT HAS BEEN ACHIEVED WHAT COVER STORY COVID-19 HEALTH INDIA’S LOCKDOWN HELPED CONTAIN INFECTIONS AND DEATHS AS SHOWN BY A HURT COMPARISON WITH THE US, THE COUNTRY WORST HIT BY THE PANDEMIC 1,385,834 548 81,795 doctors, nurses and restrictions they want lifted in Lockdown 4.0 (West Bengal, the lockdown in phases. “What we do with the resources is INFECTIONS DEATHS DOUBLING paramedics infected for example, plans to divide a red zone in three categories also an important consideration,” says Dr John. Certainly, 28.5 TIME due to poor PPE supply to allow public movement), the greatest fear public health there is wide discrepancy in facilities and tests across states. India US India US officials have is that it is still too soon to reopen borders or At this juncture, it may be worthwhile to assess where India Days taken for cases to double allow public transport. stands in its fight against COVID-19 and its plans ahead. It is a valid enough fear. Ours remains an upward curve India 4,300 positive cases linked to US of infections. From May 10 to May 13, we saw around 3,500 ISOLATION AND ICU BEDS, VENTILATORS 557,071 a Tablighi Jamaat event cases a day. And even though the time taken for infections A small percentage of the afflicted eventually require critical 12 in Delhi sent numbers to double has come down, the infection rate—the number of care. Yet, ICU beds, oxygen-supported beds and ventilators

8.6 skyrocketing in April

36 INDIA TODAY MAY 25, 2020 * ICMR testing updates; MoHFW; The Covid Tracking Project USA; CDC Graphics by TANMOY CHAKRABORTY MAY 25, 2020 INDIA TODAY 37

CS-Health-May25.indd 36-37 5/15/2020 3:12:02 PM WHAT TO RATE OF RECOVERY COVER STORY COVID-19 HEALTH % IN INDIA—among the DO NOW 32 highest in the world LOCKDOWN 4.0 WILL HAVE AGGRESSIVE PERSONAL PROTECTION EQUIPMENT CONTAINMENT STRATEGIES, ESPECIALLY FOR “Despite a global shortage, our kit availability has will contribute immensely towards moderate and severe With health workers being at the maximum risk of exposure to HIGH-RISK CLUSTERS improved. We are strategising testing to optimally use Covid infection. Five Indian hospitals are also a part of the the disease, PPE has become critical to safeguard their health. resources,” says Amita Jain, virologist and professor of WHO Global Solidarity Trials to test the efficacy of several “If you don’t protect your healthcare staff, your system will col- microbiology at King George’s Medical College, Lucknow. drugs. Gilead, the company which holds a patent for one of lapse—two hospitals had to be shut in Mumbai because its nurses No. of red No. of orange Testing is now a crucial aspect of India’s gameplan. States the most promising Covid drugs, Remdesivir, has already were infected,” says Dr Avinash Bhondwe, president of the Ma- 130 zones 284 zones like Tamil Nadu and Maharashtra, in fact, have a testing partnered with Jubilant Life Sciences in India to produce harashtra chapter of the Indian Medical Association. At the start rate higher than the national average—3,555 and 1,878 and market the drug for domestic use. We are also the lead- of the lockdown, those working in the Covid wards of AIIMS in A red zone The greatest Aggressive tests per million, respectively. The infection rate among ing global producers of other Covid drugs like Paracetamol, Delhi reported having just plastic sheets for protection. Already, can turn challenge will testing is those tested is lower than the national average in states Hydroxychloroquine and Lopinavir/ Ritonavir. 548 doctors and paramedics in the country have tested positive to green be to prevent a must for that began aggressive testing in March itself. Kerala has a At 3.25 per cent, India’s death rate is far lower than of for Covid. In West Bengal, the shortfall in PPE led to 200 infec- if no new asymptomatic red zones, current infection rate of 2.6 per cent and Rajasthan 3.4 per many western countries; it is nearly half of the US’s 5.57 tions and quarantine for 600 healthcare workers. infections carriers from especially in cent. By contrast, states that did not prioritise diagnosis, per cent. However, as Dinesh Singh, statistician and for- Dr Narang says you need a minimum of three PPE per patient are infecting containment such as Maharashtra, Gujarat, Delhi and West Bengal, mer vice-chancellor of Delhi University, says, this could every day. With 71,865 cases on May 13, that is roughly 215,595 reported in high-risk clusters are now reporting infection rates of 13.2 per cent, 10.6 per be because “disaggregated data is still missing from the PPE daily. “The demand for PPE went up from 300,000 on 21 days individuals cent, 9.6 per cent and 5.7 per cent, respectively. Once Maha- public domain. As a nation, we are yet to know the value March 18 to 2.2 million by March 24 to 100 million now,” says rashtra improved its testing, the doubling rate slowed from of predictive models—if we had reliable and accessible Sanjiiv Rehlan, chairman, Preventive Wear Manufacturers of three days in the first week of April to 12 days data, we could even predict the chances of India. After a shortfall in April, the situation has dramatically Experts also recommend behavioural and in the first week of May, claims state health you and me getting infected.” Public health workplace changes to help reduce infection improved. From pre-lockdown production of 47,000 kits per minister Rajesh Tope. “But you cannot undo analysts allege India is not recording comor- year, the central government has now enabled manufacturers what has already spread,” says Dr Bhondwe. bid deaths despite patients being Covid posi- to produce 200,000 kits daily. And this is only expected to grow. A controversy over the quality and pric- INDIA IS AMONG tive. Recently, when West Bengal added 39 In the coming weeks, quality and supply of PPE will be piv- ing of rapid test kits has forced many states, THE FEW comorbid deaths to its toll, its death rate shot otal. West Bengal claimed it had distributed 1.6 million PPE kits, which were relying on them to improve di- up from 2 per cent to 7.6 per cent overnight. 7.3 million masks and 3 million gloves, but block and peripheral agnosis, to rethink testing strategy. States COUNTRIES TO health units complained of inadequate supply. “There are many Universal Maximum possible Social distancing. like Delhi, West Bengal and Maharashtra HAVE BEGUN GOING FORWARD complaints of inferior quality PPE,” says Manas Gumta, general mask isolation for In areas where are also considering pooled PCR tests and HUMAN TRIALS As on May 13, India had 130 districts in the secretary of the Association of Health Service Doctors. “They coverage high-risk cases, this is unfeasible, using TB test machines to scale up diagnosis. red zone and 284 in the orange zone, become in one size and don’t fit smaller-built workers.” for all age especially those suspected Every district in West Bengal has two labs FOR BLOOD sides several thousand containment clusters Home ministry guidelines mandate all PPE be liquid-proof, groups in all above the age patients must with CB-NAAT (cartridge-based nucleic acid PLASMA within the red zones (Chennai alone has 690 but, unlike ISO (International Organization of Standardiza- public areas of 65 or with be shifted to amplification test) machines, which can also clusters). Lockdown 4.0 will include combat- tions) specifications, India is yet to prescribe any extensive guide- comorbidity quarantine amplify the DNA required for PCR tests. THERAPY ive strategies so that red and orange zones lines for PPE quality. “PPE made today is liquid-proof, but it is conditions facilities Pricing remains a major challenge for can become green, where no case has been also air-proof. Most manufacturers are using 90 GSM material scaling up testing. PCR tests in private labs reported for three weeks. The next few weeks and laminating it for liquid-proofing. As a result, the wearer can cost from Rs 2,000 in Uttar Pradesh to are expected to give states the flexibility to feels suffocated within 50 minutes,” says Rehlan, who feels it is Rs 6,400 at a private hospital in Mumbai (with the addition narrow down high-risk areas even within the red zones important to research for a multi-use solution. “Majority of PPE of ‘handling and consultation’ charges to the government (currently characterised by the Centre). Delhi, for example, is being made from the same plastic material polythene bags capped price of Rs 4,500). A standardised price is crucial. has only 80 clusters where the infection is growing rapidly, are made of, which is banned. It is not a sustainable material.” “One must make costs affordable and reduce fear of social yet the entire state is following red zone rules. Added sur- By contrast, states that regulated their PPE supply and train- Hand hygiene; Spitting not Geo-tagging persecution, else no one will want to be diagnosed,” says Dr veillance and restricted movement can help isolate these ing from the start are also the ones that are reporting low infec- states should allowed positive cases Amar Jesani, a public health and medical ethics analyst. clusters from areas of less concern, allowing economic and tions among health workers—Tamil Nadu, Kerala, Rajasthan, assist those with and suspected social activity to gradually resume even within a red zone. Chhattisgarh, for example. These states not only invested in pro- less resources areas ...AND TREATMENT “The uncertainty around Covid makes it difficult to tective gear but also taught staff how to use and dispose of PPE. Our understanding of Covid has changed dramatically in evaluate specific action taken in response. Decisions have the recent past. Though a vaccine still eludes us, the range been made based on available information and the situation COVID TESTING... of treatment to weather cytokine storms, thrombosis and is rapidly changing,” says Jacquleen Joseph, chairperson, From just 22,440 samples (17 tests per million) on March 24 to organ inflammation has grown. “At 32 per cent, our recov- Centre for Disaster Management, Jamsetji Tata School of 1,854,250 samples (1,404 tests per million) tested by May 13, ery rate is among the highest in the world. This is because Disaster Studies. Using caution and restraint, states are India has certainly come a long way. We had no manufactur- we’re treating multiple areas the virus might attack—lungs, preparing to come out of the lockdown. But we cannot let ing and little laboratory infrastructure for PCR tests before the Protection for Frequent Public heart, kidney, liver and blood oxygen,” says Dr Ajay Goenka, our guard down till a vaccine or treatment is found. Hy- lockdown. Today, we have 72 approved suppliers for PCR kits, all employees sanitisation awareness managing director of Chirayu Medical College, Bhopal. giene will be paramount, as will going to the doctor if you who work of office across all are poised to make 100,000 kits per day in India and are aiming India is also among the few countries to have begun have Covid. In your safety lies the country’s well-being. n communities to produce 500,000 kits per day by June. outdoors, spaces, human trials for plasma therapy. The results, if successful, with Romita Datta, Rohit Parihar and Kiran D. Tare especially public to reduce fear sewage and transport of diagnosis waste workers 38 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 39

CS-Health-May25.indd 38-39 5/15/2020 2:08:26 PM WHAT TO RATE OF RECOVERY COVER STORY COVID-19 HEALTH % IN INDIA—among the DO NOW 32 highest in the world LOCKDOWN 4.0 WILL HAVE AGGRESSIVE PERSONAL PROTECTION EQUIPMENT CONTAINMENT STRATEGIES, ESPECIALLY FOR “Despite a global shortage, our kit availability has will contribute immensely towards moderate and severe With health workers being at the maximum risk of exposure to HIGH-RISK CLUSTERS improved. We are strategising testing to optimally use Covid infection. Five Indian hospitals are also a part of the the disease, PPE has become critical to safeguard their health. resources,” says Amita Jain, virologist and professor of WHO Global Solidarity Trials to test the efficacy of several “If you don’t protect your healthcare staff, your system will col- microbiology at King George’s Medical College, Lucknow. drugs. Gilead, the company which holds a patent for one of lapse—two hospitals had to be shut in Mumbai because its nurses No. of red No. of orange Testing is now a crucial aspect of India’s gameplan. States the most promising Covid drugs, Remdesivir, has already were infected,” says Dr Avinash Bhondwe, president of the Ma- 130 zones 284 zones like Tamil Nadu and Maharashtra, in fact, have a testing partnered with Jubilant Life Sciences in India to produce harashtra chapter of the Indian Medical Association. At the start rate higher than the national average—3,555 and 1,878 and market the drug for domestic use. We are also the lead- of the lockdown, those working in the Covid wards of AIIMS in A red zone The greatest Aggressive tests per million, respectively. The infection rate among ing global producers of other Covid drugs like Paracetamol, Delhi reported having just plastic sheets for protection. Already, can turn challenge will testing is those tested is lower than the national average in states Hydroxychloroquine and Lopinavir/ Ritonavir. 548 doctors and paramedics in the country have tested positive to green be to prevent a must for that began aggressive testing in March itself. Kerala has a At 3.25 per cent, India’s death rate is far lower than of for Covid. In West Bengal, the shortfall in PPE led to 200 infec- if no new asymptomatic red zones, current infection rate of 2.6 per cent and Rajasthan 3.4 per many western countries; it is nearly half of the US’s 5.57 tions and quarantine for 600 healthcare workers. infections carriers from especially in cent. By contrast, states that did not prioritise diagnosis, per cent. However, as Dinesh Singh, statistician and for- Dr Narang says you need a minimum of three PPE per patient are infecting containment such as Maharashtra, Gujarat, Delhi and West Bengal, mer vice-chancellor of Delhi University, says, this could every day. With 71,865 cases on May 13, that is roughly 215,595 reported in high-risk clusters are now reporting infection rates of 13.2 per cent, 10.6 per be because “disaggregated data is still missing from the PPE daily. “The demand for PPE went up from 300,000 on 21 days individuals cent, 9.6 per cent and 5.7 per cent, respectively. Once Maha- public domain. As a nation, we are yet to know the value March 18 to 2.2 million by March 24 to 100 million now,” says rashtra improved its testing, the doubling rate slowed from of predictive models—if we had reliable and accessible Sanjiiv Rehlan, chairman, Preventive Wear Manufacturers of three days in the first week of April to 12 days data, we could even predict the chances of India. After a shortfall in April, the situation has dramatically Experts also recommend behavioural and in the first week of May, claims state health you and me getting infected.” Public health workplace changes to help reduce infection improved. From pre-lockdown production of 47,000 kits per minister Rajesh Tope. “But you cannot undo analysts allege India is not recording comor- year, the central government has now enabled manufacturers what has already spread,” says Dr Bhondwe. bid deaths despite patients being Covid posi- to produce 200,000 kits daily. And this is only expected to grow. A controversy over the quality and pric- INDIA IS AMONG tive. Recently, when West Bengal added 39 In the coming weeks, quality and supply of PPE will be piv- ing of rapid test kits has forced many states, THE FEW comorbid deaths to its toll, its death rate shot otal. West Bengal claimed it had distributed 1.6 million PPE kits, which were relying on them to improve di- up from 2 per cent to 7.6 per cent overnight. 7.3 million masks and 3 million gloves, but block and peripheral agnosis, to rethink testing strategy. States COUNTRIES TO health units complained of inadequate supply. “There are many Universal Maximum possible Social distancing. like Delhi, West Bengal and Maharashtra HAVE BEGUN GOING FORWARD complaints of inferior quality PPE,” says Manas Gumta, general mask isolation for In areas where are also considering pooled PCR tests and HUMAN TRIALS As on May 13, India had 130 districts in the secretary of the Association of Health Service Doctors. “They coverage high-risk cases, this is unfeasible, using TB test machines to scale up diagnosis. red zone and 284 in the orange zone, become in one size and don’t fit smaller-built workers.” for all age especially those suspected Every district in West Bengal has two labs FOR BLOOD sides several thousand containment clusters Home ministry guidelines mandate all PPE be liquid-proof, groups in all above the age patients must with CB-NAAT (cartridge-based nucleic acid PLASMA within the red zones (Chennai alone has 690 but, unlike ISO (International Organization of Standardiza- public areas of 65 or with be shifted to amplification test) machines, which can also clusters). Lockdown 4.0 will include combat- tions) specifications, India is yet to prescribe any extensive guide- comorbidity quarantine amplify the DNA required for PCR tests. THERAPY ive strategies so that red and orange zones lines for PPE quality. “PPE made today is liquid-proof, but it is conditions facilities Pricing remains a major challenge for can become green, where no case has been also air-proof. Most manufacturers are using 90 GSM material scaling up testing. PCR tests in private labs reported for three weeks. The next few weeks and laminating it for liquid-proofing. As a result, the wearer can cost from Rs 2,000 in Uttar Pradesh to are expected to give states the flexibility to feels suffocated within 50 minutes,” says Rehlan, who feels it is Rs 6,400 at a private hospital in Mumbai (with the addition narrow down high-risk areas even within the red zones important to research for a multi-use solution. “Majority of PPE of ‘handling and consultation’ charges to the government (currently characterised by the Centre). Delhi, for example, is being made from the same plastic material polythene bags capped price of Rs 4,500). A standardised price is crucial. has only 80 clusters where the infection is growing rapidly, are made of, which is banned. It is not a sustainable material.” “One must make costs affordable and reduce fear of social yet the entire state is following red zone rules. Added sur- By contrast, states that regulated their PPE supply and train- Hand hygiene; Spitting not Geo-tagging persecution, else no one will want to be diagnosed,” says Dr veillance and restricted movement can help isolate these ing from the start are also the ones that are reporting low infec- states should allowed positive cases Amar Jesani, a public health and medical ethics analyst. clusters from areas of less concern, allowing economic and tions among health workers—Tamil Nadu, Kerala, Rajasthan, assist those with and suspected social activity to gradually resume even within a red zone. Chhattisgarh, for example. These states not only invested in pro- less resources areas ...AND TREATMENT “The uncertainty around Covid makes it difficult to tective gear but also taught staff how to use and dispose of PPE. Our understanding of Covid has changed dramatically in evaluate specific action taken in response. Decisions have the recent past. Though a vaccine still eludes us, the range been made based on available information and the situation COVID TESTING... of treatment to weather cytokine storms, thrombosis and is rapidly changing,” says Jacquleen Joseph, chairperson, From just 22,440 samples (17 tests per million) on March 24 to organ inflammation has grown. “At 32 per cent, our recov- Centre for Disaster Management, Jamsetji Tata School of 1,854,250 samples (1,404 tests per million) tested by May 13, ery rate is among the highest in the world. This is because Disaster Studies. Using caution and restraint, states are India has certainly come a long way. We had no manufactur- we’re treating multiple areas the virus might attack—lungs, preparing to come out of the lockdown. But we cannot let ing and little laboratory infrastructure for PCR tests before the Protection for Frequent Public heart, kidney, liver and blood oxygen,” says Dr Ajay Goenka, our guard down till a vaccine or treatment is found. Hy- lockdown. Today, we have 72 approved suppliers for PCR kits, all employees sanitisation awareness managing director of Chirayu Medical College, Bhopal. giene will be paramount, as will going to the doctor if you who work of office across all are poised to make 100,000 kits per day in India and are aiming India is also among the few countries to have begun have Covid. In your safety lies the country’s well-being. n communities to produce 500,000 kits per day by June. outdoors, spaces, human trials for plasma therapy. The results, if successful, with Romita Datta, Rohit Parihar and Kiran D. Tare especially public to reduce fear sewage and transport of diagnosis waste workers 38 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 39

CS-Health-May25.indd 38-39 5/15/2020 2:08:26 PM CHANDRADEEP KUMAR

COVER STORY COVID-19 WELFARE

A MIXED BLESSING Direct benefit transfers have done well in the Rs 1.7 lakh crore post-lockdown package for the poor. Other provisions seem hobbled by inherent flaws and implementation gaps WEIGHED DOWN By KAUSHIK DEKA People queue up at a PDS shop in Mandawli, East Delhi, in early May

n May 12, when Prime Min- lockdown, had multiple components—direct benefit the cash in their accounts. nearly 95 per cent of landed farm - ister Narendra Modi an - transfers (DBT) in cash, support in the form of free There are other issues too. PMGKP ers covered by the scheme have got nounced the Rs 20 lakh crore foodgrains, benefits for low income workers and farm- mandates that only women account- NEARLY 90% the first Rs 2,000 instalment of the economic stimulus package, ers, insurance for health workers fighting COVID-19 holders get the money. The exclusion of annual Rs 6,000 benefit (see box), O and funds for the battle against the pandemic. Of these, men denies the benefit to many fami- OF THE WOMEN the scheme does not cover the most he added that part of it had cash transfers through the DBT infrastructure have seen lies that need the assistance. Even the needy—the landless labourers and already been disbursed in a near-100 per cent success rate. But the implementation coverage among women is not uni- RESPONDENTS HAD tenant farmers. According to Census the form of the Rs 1.7 lakh crore Pradhan of the other provisions has not been as comprehensive. form. A study published in April by the AN ACTIVE JAN 2011 data, there are 143 million land- Mantri Garib Kalyan Package (PMGKP), an- Take the Rs 500 a month for women Jan Dhan card- Yale Economic Growth Centre on the less agricultural labourers in India. nounced on March 26. Over the next two holders for the next three months. An assessment survey COVID-19 Pradhan Mantri Jan Dhan DHAN ACCOUNT. OF NSSO (National Sample Survey Of- days, finance minister Nirmala Sitharaman in 50 districts across eight states—Andhra Pradesh, Yojana (PMJDY) cash transfers claims THESE, 66% GOT fice) data also shows that 14 per cent not only gave an account of the implemen- Bihar, Gujarat, Karnataka, MP, Maharashtra, Odisha that more than 50 per cent women be- of land holdings have been leased to and Rajasthan—conducted by the Rapid Community low the poverty line are yet to even get Rs 500 IN THEIR tenants. None of them get benefits tation of the PMGKP, but also added some Response to COVID-19, a national-level coalition of 20- a Jan Dhan account. under PM-KISAN. Even some of the additional welfare measures to the pack- plus civil society organisations, found that nearly 90 per The problem of exclusion af - ACCOUNTS eligible remain outside its purview age. The PMGKP, announced to provide recent of the respondents had an active Jan Dhan account. fects the PM-Kisan Samman Nidhi due to poor paperwork (see Shankar lief to the marginalised sections during the However, only 66 per cent of them said they had received (PM-KISAN) scheme as well. While Lal Jatav case study, page 45). To

MAY 25, 2020 INDIA TODAY 41

CS-Welfare-May25.indd 40-41 5/15/2020 4:10:03 PM CHANDRADEEP KUMAR

COVER STORY COVID-19 WELFARE

MAY 25, 2020 INDIA TODAY 41

CS-Welfare-May25.indd 40-41 5/15/2020 4:10:03 PM THE RELIEF COVER STORY COVID-19 WELFARE REGISTER An update on the implementation of the PM Garib Kalyan Yojana FOODGRAINS FREE LPG CYLINDER AMENDMENT OF RELIEF TO address this issue, Sitharaman announced that Rs 2 schemes announced on March 26 SUPPORT DISTRIBUTION EPF RULES CONSTRUCTION lakh crore in concessional credit would be offered to 25 Objective Ration card- Objective Gas cylinders, Objective Employees’ WORKERS million farmers who don’t have a Kisan Credit Card. holders under PDS scheme free of cost, would be Provident Fund reg- Objective State From now on, fishermen and dairy farmers too will to get 5 kilos of wheat or provided for three months ulations amended to governments get these cards. To create backup infrastructure for the rice and 1 kilo of preferred to poor families covered include pandemic as directed to use rural economy, the central government will also make pulses for free every under the Pradhan Mantri a reason for allowing Building and Rs 33,000 crore available as additional emergency work month for the next three Ujjwala Yojana non-refundable adv- Construction ing capital through NABARD. INSURANCE months ance of 75 per cent of Workers Welfare COVER TO HEALTH Coverage Coverage 80 MILLION the amount or three Fund to provide n March 26, Sitharaman had announced WORKERS months of the wages, relief to construction 800 MILLION Status 48.2 million that 800 million beneficiaries under the FIGHTING COVID-19 whichever is lower, workers Status 603 million have families have got cylinders National Food Security Act (NFSA) Objective The from beneficiary received free wheat or Coverage would receive an extra 5 kilos of grain insurance scheme Total money spent NA accounts rice in April; 52.1 million 35 MILLION (wheat or rice) free for three months provides a personal Status Government O households have received Coverage Status Govt claims (April, May and June), on top of the accident cover of Rs has appointed New 40 MILLION 50 lakh for loss of life India Assurance pulses 22 million benefited usual allocation of 5 kilos per person. Status 960,000 But the government’s own published status report shows due to COVID-19 and Com pany Limited to 80 million migrants will also Total money get the same benefit now members availed this spent `3,493 cr that, in April, 197 million beneficiaries did not receive accidental death due to provide cover; inclusion Total money spent the additional 5 kilo quota. Besides, many were not even COVID-19-related duty. criteria and paperwork Total money spent NA It’s valid for a period of slowing down progress; `2,985 cr covered under the public distribution system (PDS). On 90 days from March 30 government silent May 14, Sitharaman extended this provision to 80 mill Coverage on status HIKE IN WAGES 2.2 MILLION Total money spent Objective Increase in health workers NA MNREGA wages to Rs 202 a day from Rs 182 Coverage

Gudiya Devi, 28, RAHI RANJAN 136.2 MILLION families RAJA BAZAR, PATNA Status 23.3 million wage CASH TRANSFER seekers given work in PAYMENT TO CASH TRANSFERS Category: Woman Jan 187,000 gram panchayats Dhan account-holder to UNDER NATIONAL PROVIDENT FUND TO FARMERS be given Rs 500 every SOCIAL ASSISTANCE Total money spent Objective Those Objective month for three months PROGRAMME `21,032 cr* earning below Rs Government to Status: Got money Objective Ex gratia 15,000 per month front-load agricultural for April, but says CASH TRANSFER ADDITIONAL FUND transfer of Rs 1,000 to working in units cash transfer of it’s not enough TO JAN DHAN FOR FIGHTING senior citizens registered having less than 100 Rs 2,000 paid to ACCOUNT- COVID-19 under the Indira Gandhi workers and who farmers in first week HOLDERS or Gudiya Devi, a ing paid an additional Objective State National Old Age Pension are at risk of losing of April under the F mother of three Rs 1,000 by the state Objective Women governments directed Scheme, poor widows their employment will existing Pradhan children, the Rs 500 government, but we Jan Dhan account- to utilise the District covered by the Indira receive 24 per cent of Mantri Kisan Samman deposited in her Jan don’t have a one,” says holders to get a cash Mineral Fund for Gandhi National Widow their monthly wages Nidhi Yojana Dhan account made Gudiya. Their landlord transfer of Rs 500 per augmenting facilities Pension Scheme and COLLATERAL-FREE in their PF accounts Coverage little difference. Gudi- has been a saviour; he month for the next for medical testing, the poor disabled LOAN for the next three 87 MILLION three months screening and supported by the Indira months ya’s husband, Sanjay still hasn’t asked them Objective Limit of Status 81.9 million other requirements Gandhi National Disability Prasad, used to run a to pay the Rs 3,000 Coverage coll a teral-free lending Coverage got the money; in con nection with Pension Scheme roadside cart selling monthly rent. “We 200 MILLION increased from Rs 10 lakh 4.5 MILLION Rs 2 lakh crore COVID-19 tea, which brought in have always faced Status 100 per cent Coverage to Rs 20 lakh for 6.3 million Status On May 13, concessional Rs 6,000 per month, hardship,especially in got money in April, Coverage 30 MILLION women self-help groups the scheme was credit to 25 million but the lockdown has sending the children 55.7 million got second NA Status 28.2 million have Coverage extended by three farmers without dried up that avenue. to school. But the instalment till May 6 Status NA got the money 68.5 MILLION families months Kisan Credit Card “I got Rs 500 for April lockdown has broken Total money spent Total money spent Total money spent Status Due to lockdown, Total money Total money spent but it’s too little for us...Rs 500 a month `12,810 cr NA `1,405 cr very few have applied spent `698 cr `16,394 cr us. I hear that ration is just too little,” says card-holders are be- Sanjay. Source: Govt status reports as on May 6; *released to states MAY 25, 2020 INDIA TODAY 43 Icon illustrations by TANMOY CHAKRABORTY to liquidate pending dues in both wages and material

CS-Welfare-May25.indd 42-43 5/15/2020 3:46:58 PM THE RELIEF COVER STORY COVID-19 WELFARE REGISTER An update on the implementation of the PM Garib Kalyan Yojana FOODGRAINS FREE LPG CYLINDER AMENDMENT OF RELIEF TO address this issue, Sitharaman announced that Rs 2 schemes announced on March 26 SUPPORT DISTRIBUTION EPF RULES CONSTRUCTION lakh crore in concessional credit would be offered to 25 Objective Ration card- Objective Gas cylinders, Objective Employees’ WORKERS million farmers who don’t have a Kisan Credit Card. holders under PDS scheme free of cost, would be Provident Fund reg- Objective State From now on, fishermen and dairy farmers too will to get 5 kilos of wheat or provided for three months ulations amended to governments get these cards. To create backup infrastructure for the rice and 1 kilo of preferred to poor families covered include pandemic as directed to use rural economy, the central government will also make pulses for free every under the Pradhan Mantri a reason for allowing Building and Rs 33,000 crore available as additional emergency work month for the next three Ujjwala Yojana non-refundable adv- Construction ing capital through NABARD. INSURANCE months ance of 75 per cent of Workers Welfare COVER TO HEALTH Coverage Coverage 80 MILLION the amount or three Fund to provide n March 26, Sitharaman had announced WORKERS months of the wages, relief to construction 800 MILLION Status 48.2 million that 800 million beneficiaries under the FIGHTING COVID-19 whichever is lower, workers Status 603 million have families have got cylinders National Food Security Act (NFSA) Objective The from beneficiary received free wheat or Coverage would receive an extra 5 kilos of grain insurance scheme Total money spent NA accounts rice in April; 52.1 million 35 MILLION (wheat or rice) free for three months provides a personal Status Government O households have received Coverage Status Govt claims (April, May and June), on top of the accident cover of Rs has appointed New 40 MILLION 50 lakh for loss of life India Assurance pulses 22 million benefited usual allocation of 5 kilos per person. Status 960,000 But the government’s own published status report shows due to COVID-19 and Com pany Limited to 80 million migrants will also Total money get the same benefit now members availed this spent `3,493 cr that, in April, 197 million beneficiaries did not receive accidental death due to provide cover; inclusion Total money spent the additional 5 kilo quota. Besides, many were not even COVID-19-related duty. criteria and paperwork Total money spent NA It’s valid for a period of slowing down progress; `2,985 cr covered under the public distribution system (PDS). On 90 days from March 30 government silent May 14, Sitharaman extended this provision to 80 mill Coverage on status HIKE IN WAGES 2.2 MILLION Total money spent Objective Increase in health workers NA MNREGA wages to Rs 202 a day from Rs 182 Coverage

CS-Welfare-May25.indd 42-43 5/15/2020 3:46:58 PM Shankar Lal COVER STORY COVID-19 WELFARE Jatav, 65 TANDA VILLAGE, BHOPAL, MP Category: Rs 2,000 under PM Kisan Sam- CUT PIECES man Nidhi The shuttered premises of able advance of 75 per cent of the amount or three months garment exporters Sunlord Status: Denied wages, whichever is lower. Of the 40 million eligible peo- Apparels in Noida, UP registration ple, only 960,000 (less than 2.5 per cent) have availed of this offer so far. PANKAJ TIWARI Another provision directed at rural India is the increase in the limit of collateral-free lending from Rs 10 lakh to hankar Lal has not money in his account. Rs 20 lakh for 6.3 million women self-help groups (SHGs). S received the Rs Lal’s issue seems to be The SHGs, under the Deendayal Antyodaya Yojana-Na- more a problem at the 2,000 instalment from tional Rural Livelihoods Mission (DAY-NRLM), are now the PM Kisan Samman data feeding end in the active in around 6,000 blocks across the country. However, Nidhi so far. His family tehsil office as some the very low numbers in bank loan applications—around has four acres of land other villagers have 9,000 in 2019-20—indicate that most SHGs may lack the in which he has a one- received the amount. capacity or credit history to be able to apply. To strengthen acre share. He says Till then, Lal says, the he has given all the additional allotment of capacity-building of SHGs, Sitharaman now proposes documents required rice his family received to roll out the PAiSA portal, an electronic platform for for registration to the as a National Food processing interest subvention on bank loans to SHGs patwari and raised Security Act (NFSA) (currently functional only in Gujarat) across all states. the matter with the beneficiary has helped Under PMGKY, the Centre has directed the states to revenue official, but them tide over a dif- utilise the Building and Other Construction Workers Wel- has yet to receive the ficult period. fare Fund to provide assistance to them. The government says that, so far, it has spent Rs 3,492.6 crore providing re-

SHEKHAR GHOSH lief to 22 million of the total 35 million targeted beneficiaries. But that’s just 7 per cent of the total available fund of the scheme between March 26 and May 6. Rs 52,000 crore. Besides, it fails to cover the estimated 15 ion migrants. She also promised that the much-dis- When it comes to MNERGA, most states have hiked million unregistered construction workers in the country. Heeramoni cussed ‘One Nation, One Ration’ card—a single ration wages as provisioned in the scheme. The government The states have also been directed to utilise funds Mandi, 47 card applicable across the country—will be made effec- claims over 40 per cent more workers enrolled in May this available under the District Mineral Fund (DMF), set up GHUTBONI VILLAGE, WEST tive by March next year. year, compared to the same period last year. “Till May 13, with a cess collected from the mining states. The DMF is MIDNAPORE, WEST BENGAL The Rs 50 lakh insurance cover for our frontline 23.3 million wage-seekers were given work in 187,000 now up in 21 states and had a corpus of Rs 35,900 crore Covid fighters, announced on March 28, was one of the gram panchayats across the country,” says Sitharaman. in 2019. There is no data available on how states are Category: ASHA worker to get health announcements that won plaudits for the government. spending this money. insurance of Rs 50 lakh The ministry of health and family welfare appointed oming to regularised jobs, a new provi- In addition to these measures, Sitharaman made the New India Assurance Company to administer the sion providing 24 per cent of monthly announcements for other marginalised sections, such Status: Not insured yet insurance plan for 2.2 million health workers. But al- wages for the next three months in the as street vendors, five million of whom will have access most two months on, the scheme is still to be rolled out provident fund accounts of those earn- to credit worth Rs 5,000 crore. With the addition of s an Accredited 4,000. COVID-19 has uniformly across the states. In Madhya Pradesh, for C ing less than Rs 15,000 a month has ex- Rs 70,000 crore, the credit-linked subsidy housing Social Health Ac- not only increased A instance, doctors have yet to receive any intimation that hibited drawbacks. For it is only for busi- scheme for those earning Rs 6-18 lakh has been extended tivist (ASHA) worker, her workload but has they have been insured. The municipal corporations nesses having less than 100 workers, and till March 2021. Those who took Mudra Shishu loans Heeramoni has to also placed her on serve 298 households 24x7 alert. She has the have sent the paper work for safai karamcharis, but who are at risk of losing jobs. In fact, in states like Rajas- (under Rs 50,000) will get 2 per cent interest subvention in five villages. She preventive kit—gloves, have not got any response so far. The state government than, this condition has led to many firms shedding with Rs 1,500 crore allocated to it. The government has gets a monthly hono- masks and sanitisers— has now announced that the family of any of its employ- workers so that they can have less than 100 workers earn- also approved projects worth Rs 6,000 crore to create rarium of Rs 3,500 needed to do her duty, ees who dies on corona duty will get Rs 50 lakh (it has ing Rs 15,000. The response to the provision has also not jobs for tribals and adivasis. from the state govern- but has no clue about already paid the sum in a couple of cases). been very encouraging. For instance, in Bihar, there are The big criticism up until the May 12 announcement ment. For additional the insurance scheme. Another provision that saw partial success was the 5,200 such units with 93,775 individuals working in of a consolidated financial stimulus of Rs 20 lakh crore work like immunisa- “The health insurance free distribution of LPG cylinders through the Pradhan them. So far, only 1,393 units have applied and a total of was that the quantum of relief offered under PMGKY was tion, polio vaccination, from the Centre would Mantri Ujjwala Yojana (PMUY). While in Telangana, 21,286 employees have got benefits. On May 13, Sithara- inadequate. The proposed 10 per cent of GDP booster health check-up of have been a big help, the sales of domestic gas cylinders increased by 10 per man extended the provision for another three months. shot will surely take the edge of that criticism. The key would-be mothers, but I have not received cent in March and 29 per cent in April y-o-y, in Kerala, An encouraging sign that distress levels among regu- task now is plugging the loopholes to ensure comprehen- ASHA workers get an any intimation so far,” less than 8 per cent of the 212,381 families listed under larised workers is still not extreme is that not many have sive coverage and implementation. n additional Rs 3,000- she says. PMUY received free cooking gas cylinders. Across In- availed of the new ‘pandemic’ clause in the Employees’ With Rahul Noronha, Rohit Parihar, Amitabh Srivastava, dia, less than 50 per cent have received cylinders under Provident Fund regulations. This allows a non-refund- Romita Datta, Amarnath K. Menon and Jeemon Jacob

44 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 45

CS-Welfare-May25.indd 44-45 5/15/2020 3:47:58 PM Shankar Lal COVER STORY COVID-19 WELFARE Jatav, 65 TANDA VILLAGE, BHOPAL, MP Category: Rs 2,000 under PM Kisan Sam- CUT PIECES man Nidhi The shuttered premises of able advance of 75 per cent of the amount or three months garment exporters Sunlord Status: Denied wages, whichever is lower. Of the 40 million eligible peo- Apparels in Noida, UP registration ple, only 960,000 (less than 2.5 per cent) have availed of this offer so far. PANKAJ TIWARI Another provision directed at rural India is the increase in the limit of collateral-free lending from Rs 10 lakh to hankar Lal has not money in his account. Rs 20 lakh for 6.3 million women self-help groups (SHGs). S received the Rs Lal’s issue seems to be The SHGs, under the Deendayal Antyodaya Yojana-Na- more a problem at the 2,000 instalment from tional Rural Livelihoods Mission (DAY-NRLM), are now the PM Kisan Samman data feeding end in the active in around 6,000 blocks across the country. However, Nidhi so far. His family tehsil office as some the very low numbers in bank loan applications—around has four acres of land other villagers have 9,000 in 2019-20—indicate that most SHGs may lack the in which he has a one- received the amount. capacity or credit history to be able to apply. To strengthen acre share. He says Till then, Lal says, the he has given all the additional allotment of capacity-building of SHGs, Sitharaman now proposes documents required rice his family received to roll out the PAiSA portal, an electronic platform for for registration to the as a National Food processing interest subvention on bank loans to SHGs patwari and raised Security Act (NFSA) (currently functional only in Gujarat) across all states. the matter with the beneficiary has helped Under PMGKY, the Centre has directed the states to revenue official, but them tide over a dif- utilise the Building and Other Construction Workers Wel- has yet to receive the ficult period. fare Fund to provide assistance to them. The government says that, so far, it has spent Rs 3,492.6 crore providing re-

44 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 45

CS-Welfare-May25.indd 44-45 5/15/2020 3:47:58 PM COVER STORY COVID-19 MIGRANTS

INDIA’S NEGLECTED ARMY Migrant workers have never had it easy in India but their suffering and abandonment in lockdown is a national shame By AMARNATH K. MENON

hortly after the nationwide lockdown to arrest the spread of COVID-19 was announced, distressing images of ▲ WALK OF LIFE Migrant workers trudge along a road in countless migrant workers across In- Ghaziabad, UP, on their way to S the state’s Jaunpur district dia setting out to trudge thousands of

kilometres to their hometowns started KUMAR CHANDRADEEP doing the rounds. The workers, who had travelled to cities in search of work and livelihood, suddenly found themselves unable to sustain themselves as a concrete mixer on a highway in Madhya Pradesh. from Hyderabad to Jharkhand, made a pit stop in Bihar on medical staff at the village level has been asked to keep a the nation shut down around them. Men with back- In another incident, 42 migrants in Chennai from its way back, bringing along workers from Bihar employed tab on the returnees. “They should have been given a hint packs, women with bundles on their heads, children traditional fishing families together bought a boat in Telangana’s rice mills, which rely on more than 30,000 about impending restrictions and a week to move before for Rs 1.8 lakh and set sail for Ganjam, Odisha, on migrant workers from Bihar and Uttar Pradesh post har- imposing the lockdown,” says migration expert Prof. S. and the elderly in arms or in tow, they inched to- May 6 with no navigating equipment. They reached vest season. Telangana had sent a list to Irudaya Rajan of the Centre for Develop- wards the only certainty they knew—home. their destination on May 11 and were promptly put the Bihar government of those who had ment Studies in Thiruvananthapuram. The exodus continued throughout April and well into May. Special under quarantine by district authorities. consented to come back to work if pro- “Instead of allowing them to travel in the train services to get migrant workers home were finally started from A vast majority, with little or no money, walked vided travel facilities. The first batch was initial days, when there were only 500 May 1. On May 12, having run 468 specials, ferrying over 500,000 on. Several lost their lives in accidents—16 migrants greeted at the station with a rose each MIGRANTS HAVE positive cases in the country, we waited migrants, the Indian Railways stepped up the pace from an average died after being run over by a goods train near Au- before being dispatched on special buses LARGELY RELIED ON till there were about 40,000.” A member 42 trains a day to a 100 daily. Other migrants with some resources, rangabad. Some, unable to face the harsh reality of to the mills in different districts. of the NITI Aayog even argued that the like their own rickshaws, hired cars or secondhand bikes bought hur- a life with no income, committed suicide. As a re- CIVIL SOCIETY AND panic movement of migrants must not be riedly, made their own way home, taking circuitous routes around sult, what was a public health crisis swiftly became NO NOTICE NGOs DURING encouraged as the economy was poised check posts to dodge the authorities, hoping to escape the rush on a humanitarian one. Many, though, are left grappling with for a pick up. trains. Some even taking dangerous steps in their desperation to Amid this exodus, Telangana saw some return loss of income and stranded. State au- THIS CRISIS Krishnavatar Sharma, co-founder reach home. On May 2, 18 migrant workers were found hiding inside for work. The first Shramik Special train that went thorities are being vigilant and para- and programming director of Aajeevi-

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CS-Migrant-May25.indd 46-47 5/15/2020 3:12:53 PM COVER STORY COVID-19 MIGRANTS

INDIA’S NEGLECTED ARMY Migrant workers have never had it easy in India but their suffering and abandonment in lockdown is a national shame By AMARNATH K. MENON

46 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 47

CS-Migrant-May25.indd 46-47 5/15/2020 3:12:53 PM BENEFICIARIES SPECIAL TRAINS COVER STORY COVID-19 MIGRANTS mn covered under ‘One Nation, ferried over 500,000 670 One Ration Card’ scheme 468 migrant workers till May 12

ka, an NGO that works with migrant any relief measures to guarantee State governments and urban local bodies in particu- communities, says: “While interna- even the bare minimum suste- lar, did not pre-empt the large volume of labour violation tional travellers were given weeks GOVERNMENT’S BELATED nance was bound to fail. More- WHAT MORE cases during the lockdown. Ideally, redressal mechanisms of advance notice, internal migrant over, even if orders were made at should have been set up at the ward and block levels, so that workers were given only four hours RELIEF MEASURES the state level, implementation NEEDS TO BE DONE workers could have been paid their dues for earlier months. before being confined to their work-  Promising 5 kg grains and 1 kg by local authorities was arbitrary.  Reach interstate employing migrant Under such circumstances, the early return of migrant sites, cramped rooms and open space chana per family per month for Some nodal officers [appointed agreements to ensure workers, which the labour after the lockdown is eased or lifted remains un- settlements.” But he also acknowl- two months to stranded migrants to facilitate movement of migrant employers provide states must implement certain. “Mobility, once their strength, is now a weakness. edges that “providing additional no- neither covered under the National workers] refused to receive calls workers better living effectively by relying They will no longer want to move as far as they did even tice could not have minimised the Food Security Act, nor state card and relied on scattered efforts by and working condi- on local bodies that though they need the money badly,” says Rajan. “They catastrophe since there is no way to beneficiaries in the state they are NGOs, abdicating all responsibil- tions, including health can reach out to high might continue to do jobs they view as dirty, dangerous predict how many migrant workers stranded in ity,” says Sharma. insurance and educa- migrant areas and demeaning outside their native states, albeit under would have successfully been able to  Announcing a ‘One Nation, One tion for their families better terms, but there will be a decline in the flow to travel in the notice period”. LACK OF ACCOUNTABILITY  Universalise PDS metros and cities.” Bihar is conducting a skill survey of Ration Card’ policy covering 670  Set up a ministry for even during normal Despite it being an issue of na- million beneficiaries (83 per cent According to the Economic Sur- the returning migrants and Chief Minister Nitish Kumar tional concern, Prime Minister Na- vey, 2016-17, India’s interstate migrant welfare and an times, so migrants do has spoken about providing them permanent employ- of those eligible under Public adequate authority to not have to rely on ex- rendra Modi made no mention of Distribution System), by August, migration doubled between 2001 ment at home. the migrant exodus in his televised and 2011 compared to the previ- help domestic migrants pensive private provid- The Prime Minister’s Citizen Assistance and Relief in and extending this to cover 100 per effectively as the single ers, where they often address to the nation on May 12, his cent by March 2021 ous decade, growing 4.5 per cent a Emergency Situations (PM-CARES) Fund has allocated fifth since the Covid outbreak. Sens- year. Annual interstate migration point of contact spend over 50 per cent Rs 1,000 crore for migrant workers and said that each state ing apathy, former finance minister P.  A scheme under Pradhan Mantri is now estimated to be at nine mil-  Undertake enu- of their incomes will get a minimum of 10 per cent of the sum allocated, Chidambaram, in a series of tweets, Awas Yojana to convert available lion migrants a year. According meration of migration  Invest in rural with the additional grant to be decided on the basis of a said he would count every additional government-funded vacant houses to the World Economic Forum’s settlements and high economies, through state’s population (50 per cent weightage) and the number rupee the government infuses into the in cities into affordable rental report, ‘Migration and its impact migration areas in NREGA and other proof Covid cases (40 per cent weightage) it has. Experts, economy and “the first thing we will housing complexes under public- on cities’, in 2017, ‘Internal migra- cities, recognise them grammes, to ensure however, argue that funds will be spread too thin and are look for is what the poor, hungry and private partnership mode tion flows in India are driven by as legitimate urban migration is safe and unlikely to make a difference unless the states pitch in with devastated migrant workers can ex- the states’s important economic citizens and accommo- secure, rather than a much more than what they get from the Centre. pect after they have walked hundreds inequities.’ A new methodology, date their numbers in result of distress What will be the emerging post-Covid scenario? “New of kilometres to their home states”. the Cohort-based Migration Met- the planning of crucial  Minimise out-mi- migration networks and corridors will form. And the On May 14, finance minister Nirmala Sitharaman ric, reveals that less affluent states like Bihar and UP see urban programmes gration by developing push for a ‘One Nation, One Ration Card’ scheme should announced a slew of relief measures for migrant workers, more out-migration, while more affluent ones like Delhi,  Announce immedi- rural growth clusters come through urgently,” says Chinmay Tumbe, assis- who, till now have largely relied on civil society and NGOs Maharashtra and Goa see in-migration. ate relief packages and bridge the urban- tant professor at the Indian Institute of Management, during the lockdown. States like Kerala, Telangana and The Interstate Migrant Workmen Act, 1979, is inad- for small enterprises rural divide Ahmedabad, and author of India Moving: A History Delhi have handled the crisis by providing rations via equate as it recognises only those in the contractor system, of Migration. “The time for discussion on portability of temporary ration cards and direct cash disbursements. excluding workers who migrate on their own. In fact, ac- social security is over; it simply needs to happen.” If the Jharkhand, Bihar and Odisha, too, provided direct cash cording to the law, the central government may be legally concerns of the stranded and returning migrants are transfers, but with a few caveats—workers must have their required to ensure free travel home during the lockdown not addressed, they may hesitate to return to the cities accounts registered with a bank from their home state, for since it is arguably responsible for the termination of when normalcy returns, triggering scarcity of labour example. As a result, many workers reported not receiving work. “Migrants are the only group of people who have WILL THEY RETURN? and long-term negative effects on the urban economy assistance at all. been included in India’s concurrent list. As long as ac- The present plight of the migrants is the culmination of and economic growth. With migrants, invisible till now, “The internal migrant crisis is being handled poorly. countability and power remain ambiguously distributed the failure of the central and state governments to draw in the limelight, their welfare, healthcare, housing and Migrant workmen and women have been deprived of between the Centre and states, there will be confusion. up a holistic policy safeguarding the interests of migrants. education for their children are likely to emerge as pre- their dignity,” says Varun Aggarwal, founder, India Mi- Without clear accountability, advance planning, arrange- The official apathy is due to the lack of interstate arrange- conditions for any jobs they take up. Both the sending gration Now, a migration research policy and advocacy ments for their welfare can’t be made,” says Trilochan ments and allowing employers and labour contractors to and receiving states of migrants may have to reach a organisation. “The government is apathetic and has a Sastry, founder trustee, Association for Democratic Re- make informal arrangements. India’s informal economy memorandum of understanding to protect their people. poor understanding of migration itself. Mass inter-state forms. Aggarwal feels the registration measures under the also witnesses wage thefts every year worth crores of ru- The role of the central government is limited as it is not return migration was always going to be an infection risk. Interstate Migrant Workmen Act could have been opera- pees, particularly from workers in construction, small a beneficiary, but, experts say, it can play the role of a Italy and China were parables for that.” tionalised through proper incentives for contractors and manufacturing, head loading and other activities with no watchdog. Only then, as Rajan believes, they may have a According to Aajeevika’s Sharma, none of the states their paymasters. “The proposed labour code, now before formalised terms of employment. Even under ordinary brighter and better 2021. n had an idea of the sheer number of migrants travelling Parliament, when enacted, will protect the basic rights of circumstances, neither labour departments nor the police —with Amitabh Srivastava, Rahul Noronha, for work. “With no prior preparation, implementation of the migrants,” declared Sitharaman in her May 14 briefing are equipped to deal with cases involving informal labour. Rohit Parihar and Uday Mahurkar

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48 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 49

CS-Migrant-May25.indd 48-49 5/15/2020 2:10:41 PM Migrant workers hitch a ride COVER STORY COVID-19 PHOTO FEATURE on a truck travelling on the Lucknow-Faizabad-Gorakhpur highway near Barabanki, Uttar Pradesh, on their way home with bags and bicycles

Photograph by MANEESH AGNIHOTRI THE LONG ROAD HOME

CS-Photofeature-May25.indd 50-51 5/15/2020 3:53:31 PM Migrant workers hitch a ride COVER STORY COVID-19 PHOTO FEATURE on a truck travelling on the Lucknow-Faizabad-Gorakhpur highway near Barabanki, Uttar Pradesh, on their way home with bags and bicycles

Photograph by MANEESH AGNIHOTRI THE LONG ROAD HOME

CS-Photofeature-May25.indd 50-51 5/15/2020 3:53:31 PM COVER STORY COVID-19 PHOTO FEATURE

Abandoning all rules of social distancing in their desperation to reach home, migrant workers crowd inside a truck travelling on NH27 near Kanpur, UP

Photograph by MANEESH AGNIHOTRI

CS-Photofeature-May25.indd 52-53 5/15/2020 3:54:36 PM COVER STORY COVID-19 PHOTO FEATURE

Abandoning all rules of social distancing in their desperation to reach home, migrant workers crowd inside a truck travelling on NH27 near Kanpur, UP

Photograph by MANEESH AGNIHOTRI

CS-Photofeature-May25.indd 52-53 5/15/2020 3:54:36 PM COVER STORY COVID-19 PHOTO FEATURE

Migrant workers daring to walk all the way to their hometowns but also hoping to catch a ride on a passing truck, rest on the shoulder of the road near a toll plaza of the Agra-Lucknow Expressway Photograph by MANEESH AGNIHOTRI

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SHEKHAR GHOSH PANKAJ TIWARI

AMIT DAVE/REUTERS

(Clockwise from top left) Carrying their possessions, migrant workers walking from Delhi and Haryana to Bihar and Madhya Pradesh reach Uttar Pradesh’s Dadri district; workers returning home in Madhya Pradesh on a special train from Nashik, Maha- rashtra, are screened for symptoms of Covid at the Bhopal railway station; masked and gloved pilgrims and migrant workers arrive in Dankuni, West Bengal, on their way home in a Shramik Special train from Rajasthan; and stranded workers queue up at the Ahmedabad railway station in Gujarat for a train to Uttar Pradesh

SUBIR HALDER

CS-Photofeature-May25.indd 56-57 5/15/2020 3:56:33 PM COVER STORY COVID-19 PHOTO FEATURE

SHEKHAR GHOSH PANKAJ TIWARI

AMIT DAVE/REUTERS

SUBIR HALDER

CS-Photofeature-May25.indd 56-57 5/15/2020 3:56:33 PM COVER STORY COVID-19 PHOTO FEATURE

Having finally made it back to their home state Jharkhand on a special train from Ernakulam, Kerala, migrant workers kneel in thanksgiving at Ranchi’s Hatia railway station Photograph by SOMNATH SEN

CS-Photofeature-May25.indd 58-59 5/15/2020 3:57:07 PM COVER STORY COVID-19 PHOTO FEATURE

Having finally made it back to their home state Jharkhand on a special train from Ernakulam, Kerala, migrant workers kneel in thanksgiving at Ranchi’s Hatia railway station Photograph by SOMNATH SEN

CS-Photofeature-May25.indd 58-59 5/15/2020 3:57:07 PM COVER STORY MIND YOUR MANNERS

WhatW will social life be like once the extended lockdown ends? Will we hug our friends again, shake strang- ers’ hands? How many times a day will we feel compelled to wash our hands, for 20 seconds each time of course? Life How will we treat those who commit the crime of cough- ing or sneezing in public after spaces? If you have a fever, should you automatically self- quarantine so as not to be Lockdown caught out by a thermal scan- ner? Perhaps we should be The norms of social etiquette that prepared for at least an initial defined our daily lives will transform period of paranoia, frayed in the post-lockdown world as people tempers, and the zealous po- emerge into a wary new world licing of public behaviour. “There is frustration with other people not following norms of social distancing,” says Kanika K. Ahuja, associate professor in the department of psychology at the Lady Shri Ram College for Women in Delhi. She recently published a study titled, ‘Probing Pandemic By Suhani Singh Pandemonium: A Real-Time Study of CO- Illustrations by SIDDHANT JUMDE VID-19 Stress, Coping and Psychological Con- sequences in India’, including responses from

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CS-Mind your Manner-May25.indd 60-61 5/15/2020 2:15:56 PM COVER STORY MIND YOUR MANNERS

WhatW will social life be like once the extended lockdown ends? Will we hug our friends again, shake strang- ers’ hands? How many times a day will we feel compelled to wash our hands, for 20 seconds each time of course? Life How will we treat those who commit the crime of cough- ing or sneezing in public after spaces? If you have a fever, should you automatically self- quarantine so as not to be Lockdown caught out by a thermal scan- ner? Perhaps we should be prepared for at least an initial period of paranoia, frayed tempers, and the zealous po- licing of public behaviour. “There is frustration with other people not following norms of social distancing,” says Kanika K. Ahuja, associate professor in the department of psychology at the Lady Shri Ram College for Women in Delhi. She recently published a study titled, ‘Probing Pandemic By Suhani Singh Pandemonium: A Real-Time Study of CO- Illustrations by SIDDHANT JUMDE VID-19 Stress, Coping and Psychological Con- sequences in India’, including responses from

60 INDIA TODAY MAY 25, 2020 MAY 25, 2020 INDIA TODAY 61

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1,009 people across 10 states minimise any contact we might have Flexibility will define post-coronavirus culture, which showed that people with other residents”. Still shaken by including an office culture long resistant to change. were “physical distancing even the experience, the couple say they do While some workers have long used technology to within homes”. Touch, Ahuja not know if “we will ever be able to claim flexibility for themselves, this privilege will says, “releases endorphins. It has a forget how they treated us”. have to become widespread, with working from strong healing effect.” She encourages Many such lockdown stories can home, and video rather than in-person interactions people to “hold hands, hug, be physi- be told, including healthcare and and meetings becoming standard. Those compa- cally intimate”, but “only in your own other essential workers who were nies that require attendance at offices will have to homes”. Will an increased wariness ostracised by neighbours. Equally, adapt to enforce social distancing. Some compa- over public displays of friendship and stories abound of kindness and com- nies are discouraging employees from lunching en solidarity affect the way we relate and munity solidarity and participation, masse, others like Wipro are sanitising offices and respond to people outside our closest of people who have been helping their While some equipment after every shift, or checking tempera- circles of relatives and friends? Ritu neighbours and those less fortunate. tures, setting up hand sanitiser stations and mak- Priya Mehrotra, professor at Delhi’s But, around the world, we are likely to families are ing face masks compulsory, even indoors. Jawaharlal Nehru University’s Centre have a circumscribed, narrow notion facing a tough for Social Medicine and Community of community. The big, fat Indian he inside, until our collective fear subsides, will Health, rejects ‘social distancing’, wedding, for instance, will surely time, there are be the new outside. There is a growing trend, the buzz phrase of the new normal, have to be reconsidered at least until a women who Tacross the world, of social media disapproval as both negative and inaccurate. vaccine is discovered. As for religious are delighted for those who rush to enjoy parks, beaches and pub- “What we want,” she says, “is physical ceremonies and celebrations, these, lic spaces on clement days. These people, the chorus distancing but social bonding.” The from Korea to Delhi, have been super- to see their contends, are heedless of not only their own safety latter will take some work, a mass spreaders of the virus. Wedding stylist husbands apply but that of others. And when we do go out, will it rebuilding of confidence. A mental Meha Bhargava says all social gather- not just be foolhardy but illegal to not be wear- health helpline in Maharashtra, ings will have to sacrifice scale for themselves to ing a mask? Designer Abhinav Mishra describes Mpower 1on1, receives over 400 calls intimacy. Parties, she suggests, will go domestic masks, inevitably, as “the new normal”. These face each day. Janvi Sutaria, a clinical out of fashion, replaced by extended chores coverings, whether bought or homemade, are, he and health psycho logist, notes that riders daily, are planning to continue with current family dinners or lunches with select suggests, acts of social responsibility, acknowledge- callers, terrified of COVID-19, often For the lockdown measures, including one rider for every groups of friends. feel better “just listening to the words working class, two seats and not allowing standing. The economic Lockdown has, perforce, brought ‘you are not alone’.” everyday consequences of this are likely to be significant. families into closer contact. This to- Still, whatever their anxiet- The busiest international airports, for instance, getherness is likely to continue even ies, the middle classes, Mehrotra survival have already expressed reservations about the when restrictions are lifted—espe- observes, will likely adapt to post- will take practicality of maintaining strict distances of up to cially as the threat remains of waves coronavirus mores more easily, two metres between passengers. of restrictions, ebbing and flowing exacerbating already existing class precedence For months, possibly well into next year, experts as the virus comes and goes. “In the differences. But for the much larger over the expect travel to be a fraught enterprise, with oner- past 10 days,” reveals Mumbai-based part of the country that is working niceties of new ous procedures and longer wait-times. Many will clinical psychologist Seema Hingor- class and poor, physical distanc- forgo travel altogether, anticipates Dr Harish rany, “I have had five couples tell me ing is an unattainable social etiquette Shetty, a psychiatrist. “There will be a fear,” he they want to file for divorce. ‘Stay pa- luxury. Everyday survival, argues, “of going to places, even once popular tient,’ I advise them. In these times, when work is likely to be tourist destinations, where there have been lots of it is so easy to feel overwhelmed.” scarce, and food insecurity infections, or that have been containment areas.” On the other hand, Hingorrany says, rife, will take precedence over People who choose to travel whenever restrictions she has also heard from women who the niceties of new social etiquette. are lifted should expect to be treated with increased are delighted to see their husbands Public transport in the worst- suspicion. It will be, psychologists suggest, a hang- apply themselves to domestic chores affected states will have to change over from traumatising lockdowns. One couple during the lockdown, to renew their to reflect concerns over physical dis- in Mumbai, a businessman and his wife, a yoga engagement with their children and tancing. Indian railways is mulling instructor, said despite self-quarantining on their have a newfound appreciation for such measures as leaving the middle return from a trip abroad, they faced hostility from the work involved at home—men berth in three-tier compartments their building’s management. After three days, they playing a role beyond being ‘provid- empty, stopping pantry services and say, of “eating only biscuits and packaged foods, we ers’. The families best able to cope, requiring passengers to bring their convinced our neighbours to allow groceries to be Hingorrany suggests, are those in own bedding. In Mumbai, BEST delivered to us at the entrance of the building. We which the roles are fluid, less defined buses, which carry over three million were told to collect our groceries late at night to or rigidly understood.

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62 INDIA TODAY MAY 25, 2020

CS-Mind your Manner-May25.indd 62-63 5/15/2020 2:16:48 PM MIND YOUR MANNERS COVER STORY

As people continue to avoid going out, restaurants will have to get on popular delivery apps, even if they once avoided them, in order to do business, which is a boon for the likes of Swiggy

ments that “we are all in this fight together”. “Right now,” says founder Ashutosh restrictions are lifted before the green shoots of Unfortunately, mounting evidence shows With education, Kumar, “is a good time to evaluate recovery become visible. Instead of Insta-worthy that, if anything, social divisions continue to moving old methods and look for new ones. food and drink, says Suvir Saran, the celebrity grow wider, that what is universally applicable— increasingly Online learning is a great opportunity, Michelin-starred chef and owner of Gurugram in the US and Sweden, as much as in India and especially for students who come from restaurant The House of Celeste, restaurants are South Africa—is the rule that your income level online, access smaller towns.” It appears inarguable vying to display their hygiene standards. As if will likely define your experience of this pan- to the Internet that online education, at every level to prove Saran’s point, Kher says his restaurants demic and any government lockdown. Education from primary to tertiary, is going will sanitise their kitchens every three hours. is a good example, as primary and secondary will have to be to grow in prominence. Whether it And Rohit Aggarwal, co-founder of Lite Bite schools around the world shut their doors and extended to entrenches and exaggerates existing Foods, which has outlets in airports as well as move online. In India, figures show only eight every inequalities is a question, though, that standalone restaurants, says they share videos of per cent of households with at least one child are has yet to be adequately considered. hygiene standards and have introduced a gong reliably connected to the Internet and less than schoolgoing As schools work out how to rein- that sounds every “30 to 45 minutes” to remind half of Indian households have access to 12 or child troduce students to classrooms, and employees to wash their hands. Restaurants will more hours of electricity per day. So while afflu- how social distancing might be main- have to get on popular delivery apps, even if they ent children can continue with their schoolwork tained, so too do restaurants, that can once avoided them, in order to do business, as and have virtual access to their teachers and their no longer squeeze ‘covers’ into every people avoid going out and congregating in small peers, the education of their poorer counterparts, available space. Arjun Raj Kher, brand spaces. For the likes of Swiggy, this is a boon, even if attending the same schools, has come to head at popular Mumbai restaurants and the delivery service has publicised its own a standstill. E-learning platforms like ACadru Hitchki and Bayroute, says even most efforts to provide masks to so-called ‘delivery have “seen 100 per cent growth” during the optimistic restaurateurs expect it partners’ and its hygiene-conscious packing and lockdown, says its founder Kamini Vidisha. Even to take at least three months after ‘no-contact’ delivery options, with orders left on after restrictions are lifted, she argues, “people customers’ doorsteps. will stick to this new method of learning as it is a reliable vaccine is widely avail- user-friendly and hassle-free.” ompanies expected to thrive—whether those Stepping out able, or middle-class fears subside, But if school education, a human right and that facilitate teleconferencing, or food deliv- for groceries is will represent the new normal—the the responsibility, in India, of the government Ceries—are those that enable the middle-class likely to remain vacating of public spaces and giv- until the age of 14, moves increasingly online, consumers to isolate themselves at home, with ing up of such convivial pleasures surely access to the Internet will have to be ex- their employment, entertainment and sustenance a trying task as a walk in a park, a meal in a tended to every schoolgoing child. Preparations guaranteed at the push of a button. with social restaurant, a movie in a multiplex, for exams, currently suspended, too, are easier Everyone has, however, had to step out for or shopping at a mall. We are, for for students who can go online and connect with groceries at some point during the lockdown, distancing now, a species in retreat, hiding their counterparts even though their schools, waited in long queues, as stores restrict the num- rules intact from the predatory COVID-19 in colleges and tuitions have shut down. Testbook, bers of customers allowed in at once, stood in the our technology-enabled shells. n a website that offers online courses to students circles marked to appropriately distance custom- —with Aditi Pai, Ridhi Kale, preparing for a variety of government exams, ers from each other, and sung songs of praise for Chumki Bharadwaj, Shelly Anand has seen an exponential rise in registrations. efficient delivery services. This, then, at least until and Mrini Devnani

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CS-Mind your Manner-May25.indd 64-65 5/15/2020 2:17:22 PM MIND YOUR MANNERS COVER STORY

As people continue to avoid going out, restaurants will have to get on popular delivery apps, even if they once avoided them, in order to do business, which is a boon for the likes of Swiggy

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CS-Mind your Manner-May25.indd 64-65 5/15/2020 2:17:22 PM MAN OF MANY ARTS Q A Muzaffar Ali is many things—filmmaker, fashion designer, Sufi—but, he says, painting feels more intimate. With his Hyderabad exhibition cancelled due to the pandemic, Ali has taken his art online Q. The Other Side is lessly. It becomes a way you for the next level of your first exhibition of life—an environment, an expression. in 15 years. Why did it ambience, a way of seeing take so long? and showing, hearing and Q. Given the current Painting for me has always making something heard. migrant crisis, your been a way of life. Showing It’s a way to make meaning filmGaman (1978) art was never a compul- out of the meaningless. seems newly sion, but I have continued poignant. to create in different ways. Q. As a man of What you feel deeply is al- Sometimes you meet some- many talents, where ways relevant. I remember one who inspires you, who do you find yourself seeing Gaman in the context drives you, who believes in most at home? of a larger sociocultural ar- you. Art is about all this. I like working with my tistic reality. It first emerged hands—’hands on’, as the as a question: why did Q. Is ‘art’ yet another expression goes [laughs]. people leave their villages form of storytelling, or I admire those who create for hybrid lives in a faceless do you see it as sepa- beauty with their hands. metropolis? Gaman’s me- rate from your identity Urdu, for instance, is only dium came from Calcutta, as a filmmaker? a state of the mind, and po- its inspiration from Aligarh, I feel all art is one. One leads etry is music for the soul. the soul from the heart of into another, and you can It helps describe all that Awadh, and its palette from move in and out of one form one feels, but painting is my paintings. n and into another effort- more intimate. It prepares —Shaikh Ayaz SHIVAM PATHAK SHIVAM

66 INDIA TODAY MAY 25, 2020 66 Volume XLV Number 21; For the week May 19-25, 2020, published on every FridayTotal number of pages 68 (including cover pages)

Leisure-May25.indd 66 5/15/2020 12:28:07 PM

Last date to apply: 15th July 2020 Online Exam dates: 30th July to 4th August.