The Tamil Nadu government has set up a high-level committee headed by former RBI Governor and former Chairman of the Prime Minister's Economic Advisory Council, C Rangarajan. The committee, which is comprised of economists and industry experts, will assess the overall immediate and medium-term impact of the Covid-19 pandemic on different sectors of the State's economy and identify possible sources of financing and funding.
The lockdown and the post-lockdown social-distancing measures needed to limit the spread of the Covid-19 virus are bound to have a medium-term impact on various sectors of the state's economy. These include Agriculture, Industries, Services, including tourism, construction, real estate and retail trade, among others.
The committee will submit its final report to the state government within three months, apart from submitting an interim report. Its members include A Vellayan, former Murugappa Group chairman, N Srinivasan, vice chairman and MD of India Cements, Venu Srinivasan, TVS Motors chairman, Padmaja Chunduru, managing director of Indian Bank, P N Vasudevan, managing director and CEO of Equitas Bank, apart from bureaucrats and academicians.
In an order issued today, the State government said it is essential to deliberate on and to make recommendations on the policy measures to be undertaken by the State to bring the economy back to the expected growth trajectory, address the needs and requirements of the poor, maintain the supply of essential commodities undisturbed, while limiting longer-term fiscal deterioration.
The committee will assess opportunities and threats in the short- and medium-term, along with measures required to help key sectors overcome the impact of the pandemic. It will also identify specific reform measures to be taken by the State to support and promote the growth of these sectors, and identify possible sources of financing and funding for infrastructure projects, small businesses and other enterprises.
The State government had recently constituted an expert committee headed by the Finance Department Secretary and 21 officials and non-officials. Its job was to consult stakeholders and generate suggestions, and to submit a report to the Government on the way forward, with specific reference to strategic measures post-lockdown.