Post Covid -19
Though the Govt is putting brave effort in containing the pandemic the loss in some areas would be irreplaceable if not planned now.
To start with, many companies have already communicated that there will be pay cut of 30% for April and have planned to downsize the workforce in coming months the justification would be social distancing @ work place added to the poor demand. This sounds death knell for people who would lose jobs across all the sectors and it may cost someone's life if he or she is the sole breadwinner.
Industry/Group of Minsters should start working from now on in identifying potential companies that are likely to file bankruptcy or planning for layoff's then provide them sops so they continue and also create a forum to hear from the union's/workforce to know if there is any change of guard from the management. This gets worse when it comes supply chain where it has a spiraling effect. The GOM have to start from here and work through the end till they reach unorganized sectors like SME's where people work on daily wages or on contract basis. Corporate Leaders play a critical role in identifying the needy be it contract or casual labors. The SOPS could be in the form of relaxing taxes, providing loans ( either from banks or VC's ). Crude Oil usage have hit a decade low and will continue to do so we could plan to store like how the US did in the past. This impact will cascade to Taxi/Cab drivers who are depending heavily on IT/ITES sectors. The IT sector itself is in doldrums the impact has to be seen in the coming months since most of the companies in US have decided to block funds until situation returns to normal. The entire Europe region seems to resume within 3 months. Startups will face financial crunch as their VC's have advised them to manage with the existing funds till the end of this year. As a result Reality, Automobiles, Hotel, Travels/Tourism and other sectors will reach bottomless pit.
Govt should advise bankers to refrain from asking EMI or Loan repayments for a period of at least 4 months from companies that are really qualified. Though this is in place now, some bankers are increasing the period of repayment. Also the current allocation is just less than 1% of GDP and it is not sufficient time is running out hopefully GOVT will step in and provide at least 2% of GDP so that no lives are lost.
On the positive side, There are is hope for economy revival through some Japanese and Korean companies as they have planned to move out of China. This will be followed by many other countries as well but only if we are prepared with the infrastructure.We have to plan meticulously and be very disciplined. Recently saw the mourning of Chinese citizens everybody was so dedicated they froze wherever they were and whatever they were doing and we as a citizen lack that and its difficult to cultivate.
We have to understand how China have been delivering with their Quality control in place and strictly follow the suit otherwise the pie will be shared across with other APAC countries. At the same time investment from Korean companies have to be properly scrutinized since they come along with their ancillaries/subsidiaries.
Finally, we have to do a case study of what we did during hard times like this have worked. Like transporting goods/essentials in trains worked well it took less than 10 hrs from AP to Delhi. May be because of no other trains but GOVT could seriously consider laying dedicated tracks for freight movement.Covering rest of Indians to create a bank account in order to get benefited from Jan Dan and other programmes. In the event of any strike, lock down like this movement of trucks should be continued till it reaches destination. The current situation of trucks in no man's area poses grave risk as it doesn't cover insurance for any and only the driver is responsible.
At times like this instead of relying on GOVT people can help people rich can help poor any one can turn into a social worker like it happened in Kerela.
Like AMMA canteen in TN every state can replicate this model to provide food @ cheaper price GOVT can also reach out to Ashrams to prepare and serve free food to near by Industrial areas with rations supplied. A Quote from Swami Vivekananda - Service to humanity is service to GOD!
~ This too Shall Pass ~
To start with, many companies have already communicated that there will be pay cut of 30% for April and have planned to downsize the workforce in coming months the justification would be social distancing @ work place added to the poor demand. This sounds death knell for people who would lose jobs across all the sectors and it may cost someone's life if he or she is the sole breadwinner.
Industry/Group of Minsters should start working from now on in identifying potential companies that are likely to file bankruptcy or planning for layoff's then provide them sops so they continue and also create a forum to hear from the union's/workforce to know if there is any change of guard from the management. This gets worse when it comes supply chain where it has a spiraling effect. The GOM have to start from here and work through the end till they reach unorganized sectors like SME's where people work on daily wages or on contract basis. Corporate Leaders play a critical role in identifying the needy be it contract or casual labors. The SOPS could be in the form of relaxing taxes, providing loans ( either from banks or VC's ). Crude Oil usage have hit a decade low and will continue to do so we could plan to store like how the US did in the past. This impact will cascade to Taxi/Cab drivers who are depending heavily on IT/ITES sectors. The IT sector itself is in doldrums the impact has to be seen in the coming months since most of the companies in US have decided to block funds until situation returns to normal. The entire Europe region seems to resume within 3 months. Startups will face financial crunch as their VC's have advised them to manage with the existing funds till the end of this year. As a result Reality, Automobiles, Hotel, Travels/Tourism and other sectors will reach bottomless pit.
Govt should advise bankers to refrain from asking EMI or Loan repayments for a period of at least 4 months from companies that are really qualified. Though this is in place now, some bankers are increasing the period of repayment. Also the current allocation is just less than 1% of GDP and it is not sufficient time is running out hopefully GOVT will step in and provide at least 2% of GDP so that no lives are lost.
On the positive side, There are is hope for economy revival through some Japanese and Korean companies as they have planned to move out of China. This will be followed by many other countries as well but only if we are prepared with the infrastructure.We have to plan meticulously and be very disciplined. Recently saw the mourning of Chinese citizens everybody was so dedicated they froze wherever they were and whatever they were doing and we as a citizen lack that and its difficult to cultivate.
We have to understand how China have been delivering with their Quality control in place and strictly follow the suit otherwise the pie will be shared across with other APAC countries. At the same time investment from Korean companies have to be properly scrutinized since they come along with their ancillaries/subsidiaries.
Finally, we have to do a case study of what we did during hard times like this have worked. Like transporting goods/essentials in trains worked well it took less than 10 hrs from AP to Delhi. May be because of no other trains but GOVT could seriously consider laying dedicated tracks for freight movement.Covering rest of Indians to create a bank account in order to get benefited from Jan Dan and other programmes. In the event of any strike, lock down like this movement of trucks should be continued till it reaches destination. The current situation of trucks in no man's area poses grave risk as it doesn't cover insurance for any and only the driver is responsible.
At times like this instead of relying on GOVT people can help people rich can help poor any one can turn into a social worker like it happened in Kerela.
Like AMMA canteen in TN every state can replicate this model to provide food @ cheaper price GOVT can also reach out to Ashrams to prepare and serve free food to near by Industrial areas with rations supplied. A Quote from Swami Vivekananda - Service to humanity is service to GOD!
~ This too Shall Pass ~
posted by raj_gemboy at 3:00 AM
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