Need to revive all sectors together, experts tell CM Uddhav Thackeray

To help tackle the economic impact of the lockdown imposed to contain the spread of Covid-19, a team of 14 from University of Mumbai’s Mumbai School of Economics

To help tackle the economic impact of the lockdown imposed to contain the spread of Covid-19, a team of 14 from University of Mumbai’s Mumbai School of Economics and Public Policy has drawn up a report with recommendations for the state, highlighting the need for multi-faceted change in multiple sectors.

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The report, submitted on April 30 to chief minister Uddhav Thackeray and the state finance department, was drawn up by 14 members of the school’s economics department, including professors, junior fellows and research staff. “The situation at hand is such that the government cannot focus on only one or two sectors. Revival of all sectors together is needed,” said one of the 14 members.

Need for multi-faceted change in fiscal and financial policies, consumption and investment policies as well as micro-level service and agricultural sectors along with transport, education and health industries is highlighted in the report.

“Decentralisation would be the key to how well policies get implemented and that would determine how soon we can get our economy to re-bound,”said Mala Lalwani, head of Mumbai School of Economics.

The lockdown, which has been extended till May 17, has hit several service sectors including hospitality, tourism and real estate.

The recommendations include constant help from the government for a few months to a year and better support for farmers. For rural areas, the report suggests more supplementary nutrition programs as well as a push for digitisation of the education system.

“This lockdown has provided a political opportunity to push through important reforms as Covid-19 has laid bare several lacunae in different sectors. Areas like urban governance and public health management need to witness maximum changes,” said a professor from the department.

The report also shows how raising significant funds is important but equally important would be effective utilisation of resources for maximum impact. From earmarking windfall gains in revenues — like those from the fall in international oil prices — and diverting these to public health; to the need for banks to ensure sufficient credit availability to different sectors and reduce risk aversion, the recommendations cover reviving of investment policies as well.

The team of 14 worked on the report for three weeks during the lockdown.

“The University of Mumbai’s vice chancellor suggested we work together on this front and this has to be the first time that we worked together but from our own homes to put together the suggestions,” said a team member.