STIMULUS PACKAGE MUST BE BROAD-BASED: AMITABH KANT
Technology-driven process for Covid-19 relief distribution is ensuring last-mile delivery of foreign aid, says NITI Aayog Chief Executive Officer in conversation with Kant, who chairs the empowered group on coordination of Covid-related relief and response activities, also says any stimulus package must always be broad-based. Edited excerpts:
How is aid (vaccine and medicines) from foreign countries being distributed to states in need? How is the government ensuring states receive such medical supplies on time and in a fair manner?
Aid sent via three channels — government, private sector and states, non-governmental organisations (NGOS) and civil society organisations (CSOS) — reaches those affected.
The NITI Aayog coordinates with private donors through the COVAID platform, which allows them to track the status of their shipments.
The Ministry of External Affairs is coordinating with donor countries through the Integrated Covid aid tracker. The two portals have been devel- oped to ensure the process is completely digital.
Allocations done by the Ministry of Health and Family Welfare are in accordance with a standard operating procedure.
In case of direct sourcing of aid by states/ngos/csos, a nodal officer has been appointed for each state/union Territory (UT), and speedy Customs clearance is facilitated.
While allocating, priority is accorded to medical hubs and states/uts with high caseloads. Importance is also given to states/uts with scarce resources, as well as those with physical connectivity issues.
A real-time portal has been created to monitor distribution of foreign aid, including vaccines. How is distribution tracked?
Tech has streamlined the entire process of aid distribution, making it transparent and digital.
Two portals have been developed in partnership with private tech companies like Flipkart, Nagarro, Cloudstack, Mapmyindia, Freshworks, Amazon, and Microsoft.
We have onboarded logistics service providers, the Indian Air Force, airlines and other stakeholders, so that end-mile delivery is glitch-free.
A robust robust monitoring system not just tracks the location and status of the consignment, but also checks for utilisation. This is done by means of geotagged photos and videos, which have to be uploaded by final destination institutions.
What has been the impact of the second wave on the economy?
The impact on the economy in the second wave has not been as hard as it was in the first one. Throughout April, manufacturing activity and exports have been robust. Economic activity is likely to be impacted in May, owing to state-level lockdowns. But a rebound in activity is expected once states start the unlock process.
Vaccine manufacturing capacity is being scaled up. As more people get vaccinated, they are protecting themselves from a potential third wave.
On the back of rising global demand and increasing vaccinations, economic activity is likely to pick up again in the coming months.
Global demand is also expected to remain elevated as developed countries fully vaccinate their citizens.
Is the government working on yet another stimulus package to boost economic growth? In your assessment, which segments need the most assistance? In calling for a stimulus package, economists often advocate for the government to increase investments in public infrastructure, given their large multiplier effect.
In Budget 2021, capital expenditure (capex) was increased 34.5 per cent over the Budget Estimates of 2020. It is also important to understand that these policies impact the economy with a lag. The impact of the expansion of capex is likely to be spread across years.
It is important to boost growth in a holistic manner across all sectors. An important highlight of Budget 2021 was that it promoted broad-based growth, rather than picking specific sectors for assistance. Any stimulus package must be broadbased and focus on raising growth. The government is ready to act, but it must get the timing right.
Micro, small and medium enterprises (MSMES) have sought more relief, besides the restructuring announced by the central bank. Is the government working on new relief measures?
The government is prepared to act, like it has in the past. However, it is important to get the timing right. Since MSMES exist across the entire gamut of the economy, a broadbased view of growth, unlocking supply bottlenecks, and raising employment and demand will enable all MSMES to grow. Relief measures must focus on growth and employment.
What impact will the second wave have on the government’s push to privatisation? Will the new privatisation proposals be delayed?
“THE GOVERNMENT IS READY TO ACT (ANNOUNCE STIMULUS/RELIEF MEASURES), BUT IT MUST GET THE TIMING RIGHT” “WITH GLOBAL LIQUIDITY IN THE MARKETS, AND CONFIDENCE IN INDIA, THIS PERHAPS IS THE BEST OPPORTUNITY TO PUSH THROUGH PRIVATISATION”
I do not think the privatisation proposals will be delayed by a year. Globally, there is a lot of liquidity in the markets, fuelled by easing fiscal and monetary policies.
India has seen a record $37-billion foreign portfolio investments in equity markets. Increasing participation by domestic and foreign investors indicates underlying confidence in the Indian economy.
With global liquidity in the markets, and confidence in India, this perhaps is the best opportunity to push through privatisation and disinvestment.
Will the government stick to its target of privatising two public sector banks and one insurance company announced in the Budget?
No delays are expected in the privatisation proposals. The Aayog has already made its recommendations.
How is the government preparing for a potential third wave of the pandemic?
We have to let our current experience guide us. Streamlined distribution system for oxygen and a green corridor for quick transport through road, rail, and air are needed. Our focus should be on how we prevent hospitals from getting overwhelmed — this will happen when hospitalisations reduce.
Do-it-yourself rapid test kits are now available for testing at home. The vaccination programme needs to be accelerated. The government has extended grants to Indian vaccine makers to increase production. Sputnik has been approved and two consignments have arrived.