India plans to resume some manufacturing

new delhi — India is planning to restart some manufacturing after April 15 to help offset the economic damage of a nationwide coronavirus lockdown, two government sources said, even as it weighs extending the lockdown.

The 21-day lockdown of India’s more than 1.3 billion people is due to end today, but the government is widely expected to extend it until the end of the month, with the number of coronavirus cases rising to 9,152 and the domestic death toll reaching 308, on Monday.

One of the sources said Prime Minister Narendra Modi had directed some ministries to come up with plans to open up some crucial industries as the livelihoods of the poor were being hit. The source said the government was considering allowing the resumption of some operations under guidelines that were being drawn up.

The trade and industries ministry did not reply to an email seeking comment. The government’s top spokesman, K.S. Dhatwalia, declined to comment.

Separately, in a letter seen by Reuters, the industries ministry has recommended restarting some manufacturing in the autos, textiles, defence, electronics and other sectors.

The ministry said in the letter, addressed to the home ministry, that this could be achieved via reduced shifts with lower staff to ensure social distancing.

‘All-out efforts’ needed

Meanwhile, Reserve Bank of India governor Shaktikanta Das is of the view that all-out effort is required to protect the domestic economy against the impact of the cornavirus crisis, according to the minutes of the last Monetary Policy Committee meeting.

Noting that the macroeconomic fundamentals of the Indian economy continue to be sound, Das said during the meeting of the MPC that it is important to ensure that finance keeps flowing seamlessly to various sectors of the economy.

“We are living through an extraordinary time and the situation currently facing the country is unprecedented. It, therefore, becomes imperative to make all-out efforts to protect the domestic economy from the adverse impact of the pandemic,” he said.

Das said that it is comforting that the macroeconomic fundamentals of the Indian economy continue to be sound, especially in comparison with the conditions that prevailed in the aftermath of the global financial crisis. —