A blueprint to restart the economy| Analysis
The coronavirus disease is an unprecedented humanitarian crisis. In the six weeks so far, India’s economy has functioned at about half of its full activity level, with over 140 million non-farm workers inactive In the six weeks so far, India’s economy has functioned at about half of its full activity level, with over 140 million non-farm workers inactive. Second, India’s economic activity is concentrated — 130 districts that are classified by the ministry of health and family welfare as falling in the red zone comprise 40% of India’s GDP; the 352 green zone districts, where most activity is allowed, account for less than a quarter. Third, states may choose to keep red zone districts locked down beyond containment zones in order to minimise the risk of infection spreading, even though the ministry of home affairs has allowed them to reopen. If 27 of the most urbanised red zone districts that also have relatively high infection rates are under lockdown, only 80% of India’s economic activity occurs, and 67 million non-farm workers remain inactive.
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