Govt May Ride Out Of Crisis By Betting On Agri, Infra Sectors

A week ahead of the scheduled end of lockdown, India is faced with the crucial question of restarting the economy in the face of unprecedented destruction of the global value-chain by COVID-19. The scale of destruction can further rise, depending on the impact on the US.

- Pratim Ranjan Bose

Tasked with conducting policymaking in this evolving situation, the government is expected to keep faith in old warhorses agriculture and infrastructure for immediate revival of demand. As a longer-term strategy, it is likely to focus on manufacturing to strengthen the domestic value-chain in select sectors.

The efficacy of the strategy will depend on scores of secondary sector reforms. The most important of these are finding a mechanism for fast-track implementation of infra projects and resolving issues with infrastructure finance, by reviving development finance institutions (DFI).

To keep the export economy going in the face of global recessionary trend, India should explore the opportunity of local currency-based trade with neighbours.

Local currency trade