Policy balance
The recent appointment of Sanjay Malhotra as Governor of the Reserve Bank of India (RBI), replacing Shaktikanta Das, signals a pivotal shift in India’s monetary policy dynamics.
Meanwhile, the Government has reportedly decided to get the country going once again by allowing 15 various industries to commence operations.
The Ministry of Commerce and Industry has suggested allowing more activities with “reasonable safeguards” if the lockdown is extended for another two weeks, as is speculated by many.
In a letter written to Home Secretary Ajay Bhalla, Industry Secretary Guruprasad Mohapatra said, “However, it is felt that certain more activities with reasonable safeguards should be allowed once a final decision on extension and nature of lockdown is taken by the Central government. These new activities are essential to improve economic activity and provide liquidity in the hands of the people”.
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The ministry also recommended a list of 15 industries that should be allowed to function with “reasonable safeguards”.
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“I am sure other ministries like agriculture are approaching the home ministry separately for allowing activities like harvesting etc that they consider crucial,” the letter added.
The letter came two days before the lockdown ends on April 14.
Meanwhile, the Government has reportedly decided to get the country going once again by allowing 15 various industries to commence operations but with minimum manpower and distancing norms on a single shift basis.
These include those involved in manufacturing of heavy electrical items like transformers and circuit vehicles, telecom equipment and components including optic fiber cable, compressor and condenser units, steel and ferrous alloy mills, spinning and ginning mills, power looms, and defence and defence ancillary units.
Cement plants, however, can run in three shifts as cement production is a continuous process.
Pulp and paper units can resume their production in clusters where COVID-19 cases are low based on the data by the state authorities, said a Home Ministry direction issued to all state and Union Territory Chief Secretaries.
Fertiliser plants, paints and dyes manufacturing, all types of food and beverages, seeds processing units, plastic manufacturing units, automotive units, gems and jewellery sector units, all units in Special Economic Zones and Export Oriented Units have also been exempted from nationwide lockdown measures.
Also, the government has decided to allow trucks, repair services, and street vendors to start work.
The above decision is being perceived as a step towards the exit strategy.
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