Furlough plan, stimulus package will help revive economy

It's been over 1.5 months since lockdown began (as far as I remember…). Forgive me given the perceived lack of requirement to really keep a count. Anyway, according to the data, India has done relatively well in containment.

Lower than the likes of US and England, two countries that put off this crisis until one of their leaders started losing political influence while the other nearly lost his own life.

"So pre and post lockdown, what do we do?"

There are two ways we can tackle this pandemic on an economic front.

THE FURLOUGH PROGRAMME

This temporary policy paves a path for employers to register their employees for temporary assistance in payment of wages. Capped at 2,500 British Pounds, the U.K. Govt pays 80 per cent of the wages of furloughed employees.

This ensures that no one loses their job and at the same time earning some decent pay while staying safe at home. India needs to take up this idea!

We may not be able to pay 80 per cent of wages given our population, but certainly we can pay something given the extravagant amounts of forex and hard cash that the government has. This will ensure that no Indian loses their job, especially in the lower income class.

FINANCIAL STIMULUS PACKAGE

To kick start the economy back to life, countries like the US have pledged 10 per cent of their National Income towards stimulating their economy.

Indian companies need a stimulus to bring back productivity, hence India must follow suit. It will be tough, but we Indians must stick together (not literally, maintain social distancing…) and ensure that we follow each and every precaution so that sooner than later, we'll be back on the roads, painting the town RED!

Kavin Ramesh,

Pursuing BA (Hons) in History and International Relations at IILM University, Gurgaon.