Balancing Act: Covid-19 and the Economy

The fight against Covid-19 has entered into a crucial phase, sooner rather than later we have to take a decision on the continuance of nation-wide lockdown. It is not going to be an easy decision to take as the virus has put us virtually in a catch-22 situation. On one hand, if the lockdown is not removed, India’s economy will suffer a huge loss which will definitely increase the hardships of the people. On the other, our eagerness to boost the economy may end up infecting more Indians and the pandemic situation may slip further out of hand. So, whatever decision we take, it should be after weighing all pros and cons so that the suffering caused to the country and its people is minimised. It is hoped that, the Prime Minister along with the Chief Ministers of the various states will be able to find the right path.

Few countries, especially developed ones, initially focused on the economy and thus delayed announcing lockdown till the last possible moment. As a result, casualty rate in those countries are higher than the countries which showed concern for human lives above anything else. But as US President Donald Trump put it, he could not indulge in a situation where the cure is worse than the disease itself. By making such a comment Mr. Trump made it amply clear that to him the economy came before human lives.

On the other hand, countries like India took a more cautious approach in containing the situation. As virtually everything is unknown about the novel corona virus, Indian Government adopted the safest method. To prevent the infection spreading, it declared lockdown to break the chain of Covid-19 transmission. The result is open for everyone to see. While, more than fifty one thousand people have died in US after being infected with Covid-19, the death toll in India is yet to touch 1000. The success can’t be overlooked.

But, this is not enough. There is no place for complacency at this stage because it is just the beginning of our fight against the novel virus. The battle will be won only when we will find a vaccine to eradicate Covid-19 completely. Till then, we cannot rest. Along with the search for a vaccine, we will have to make every effort to keep the economy rolling. Already, Covid-19 has made a substantial dent in our economy, indications show that India’s economic growth may touch its nadir in this fiscal year. Nearly forty crore people may become jobless. Poverty and hunger may spread at an alarming rate, to tackle the situation the government is doing its best to provide economic relief. To maintain liquidity, the government has announced various Standard Operating Procedures (SOPs). To have sufficient funds, the President, Governors of all states and all MPs have agreed to 30 per cent pay cut. Utilisation of Local Area Development Fund (MPLAD) has also been stalled. But all these steps will come to naught if we can’t return to our normal lives at the earliest. When will Industries restart, farm lands rumble with activity, service sector resume full function and citizens go back to their daily lives? Simultaneously keeping the infection at a distance till the time a vaccine is found and keep the economy booming is now the biggest challenge ahead of us.