How India’s Economy can Gain from Opportunities thrown up After Covid19

Context: Pandemic induced opportunities to test the resilience and agility of the Indian economy need to be capitalized for strengthening call of self reliant post covid economy.

Opportunities for Strengthening Post Covid Economy

• Robust domestic manufacturing ecosystem

• Challenge Chinese hegemony and attract FDI: by providing conducive business climate, better infrastructure and logistics, simplified land and labour laws and single window clearances.
• Focus on skill and scale: to be both quality and cost competitive and serve a global customer base (unlock the scope in pharma, electronics, automobiles, and defence machinery sectors).

• Shift to a regime of citizenship empowerment 

• Through DBT model rather than the politically motivated instrument of entitlement (farm loan waivers) by phasing out market distorting subsidies (fertilizer and power).

• Digitized lending models using Artificial Intelligence (AI)
• For disbursing credit basis business flows (invoices of Goods and Services Tax (GST) and not assets) to help startups and small enterprises 
• Ensure accurate determination of credit risk leading to more realistic pricing of loans, for banks.

• Increase utility and efficiency of social security programmes 
• Jan Dhan accounts: shift focus from an account for every household to an account for every adult 
• Derive maximum benefits: by increase financial literacy drives, mobile and digital banking, account linked insurance, custom financial products and seamless integration with Aadhar. 

• Public private partnership for expanding healthcare infrastructure

• By improving centre-states coordination, disease surveillance systems.
• Preparedness: a ready stock of lifesaving drugs and medical equipment, diagnostic labs and modern hospitals in every district and fast tracking of telemedicine/e-consultations.

•  Expansion and diversification of various digital business channels 

• to ensuring social distancing, contactless delivery, online education (rise of software companies), remote working (increase demand for home broadband and virtual private network), virtual concerts and movies (opportunities for over-the-top players) and digital payments.

• Work from home gains

• Reduce economic gender gap: with remote working and flexible schedules, welcome more women and mothers planning to resume their careers.
• Less burning of fuel and reduced carbon footprint: Video conferences and virtual meetings will cut down on travel