Most sectors will be open by May 3, says Sanjeev Sanyal

Downturn could last years, says Principal Economic Adviser

23/04/2020, PRISCILLA JEBARAJ,NEW DELHI

Sanjeev Sanyal

The process of “unwinding” the lockdown imposed to contain COVID-19 has already begun, and most sectors of the economy will be open by May 3, Principal Economic Adviser Sanjeev Sanyal told members of the PHD Chamber of Commerce and Industry via a video-conference call.

“Well before the rest of the world is out and about, the Indian economy will be open,” he said. International passenger travel, however, would be locked down for a long time. “I think it will be months, not weeks, as much of the world remains unsafe,” he said.

With regard to an economic stimulus, Mr. Sanyal exhorted industry leaders to view the process as “a marathon, not a sprint.” He warned that the economic downturn was expected to last a long time. “Not weeks, but possibly years, and certainly months,” he said. So the government also expected to dole out support in incremental doses, rather than spend all its resources in one go.

Mr. Sanyal acknowledged that many other countries announced huge stimulus packages, running into trillions of dollars, even before announcing shutdown measures to prevent the spread of the infection. However, most of these countries “wasted” their money on a “big bang” and felt the Indian approach of first announcing the lockdown, and then taking “calibrated” measures to protect and revive the economy was more effective in the long run.