India's 'New Deal' moment

Context: The Covid crisis provides an opportunity to craft a historic renewal programme

Out of the box solution 

• Revenue Mobilization: 

1. Increasing fiscal deficit of Union Budget.
2. Through National Renewable Fund (NRF) (akin to Roosevelt’s “New Deal” of 1930s or the Marshall Plan) 

• Funded by 60% of domestic borrowing and remaining 40% from external sources.
• NRF could be a 50-year fund with moratorium on repayments for first 10 years 

• Public Expenditure: Through various public works categorized under the following heads:

• Projects with huge employment potential, permanent asset creation and multiplier effects: like  developing integrated logistics cum manufacturing hubs under Sagarmala Project, Provision of piped water supply under Jal Jeevan Mission, River linking, creating new state capitals, etc.
• Revamping health infrastructure through expanding AIIMS network in India.
• Grabbing opportunity in shift of global supply chains due to COVID impact.

Conclusion

• Winston Churchill’s oft-repeated quote: “Never let a good crisis go waste” provides a message that would justify India’s “New Deal” moment .