Bring Back Businesses

Nations, including India, are struggling hard not only to save the lives of their citizens from this deadly disease but also their economies that have been severely impacted by lockdowns imposed for containing the spread of the coronavirus. Economists and social scientists have argued that unless governments evolve an effective survival strategy for farmers, daily wage labourers, workers and businesses, the death toll from starvation and suicides due to job losses and unemployment may be higher than that from the Covid-19 epidemic itself. We have already witnessed shocking and heart-rending stories of migrant labourers, thrown out of their jobs, walking hundreds of miles back to their homes and many succumbing to hunger and starvation on the way. The big question facing India as well as other countries is how to strike a balance between imposition of a lockdown for containing this pandemic on the one hand and saving businesses and jobs on the other. The relaxations for farming activities, particularly harvesting of crops, sale of produce in mandis and procurement of foodgrains under the Public Distribution System would definitely provide a lot of relief to farmers and also some employment to agriculture labourers residing in rural areas. Industries and services that are not regarded as “essential” or “critical” for combating the Covid-19 epidemic are also quite important for economic growth and provide employment to millions of workers. Many sectors such as civil aviation, tourism, hotel industry, fashion, malls, retail businesses, etc., that provide employment and livelihood to millions and are regarded as the engines of growth, have come to a near standstill during the lockdown. If the government presses too hard on payment of regular wages when there is no work, then many MSMEs and other units may be forced to close down and file for bankruptcy or insolvency. Some legal experts argue that the present lockdown should also be treated as an employment injury and employees should be entitled to claim compensation under the ESI Act, 1948. As per an affidavit filed by the central government before the Nagpur bench of the Bombay High Court in a PIL in 2017, more than Rs 40,000 crore was lying unclaimed in inoperative accounts with the EPFO.