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How will new lockdown guidelines impact different sectors of the economy?

The services such as aviation, hotels, malls, etc. would have to wait for a much longer time

Topics
Coronavirus | Home Ministry | Lockdown

Kanishka Gupta  |  New Delhi 

On Wednesday, the Union came out with guidelines detailing some relaxation during the second phase of the to revive economic activity.

Basis these guidelines the government will allow agricultural activities, construction of roads and buildings from April 20, in the hinterland, which has so far been less affected by the pandemic.

Here's how the recently introduced guidelines will have its impact on different sectors of the economy.

Madan Sabnavis, the chief economist at CARE Ratings is of the view that it is good that the government has opened the doors towards working on an exit route and has included the most essential activity, agriculture to operate freely.

With the Rabi harvest reaching its peak this month, allowing the free flow of labour and transport to enable sale of produce is a big step that has been taken.

However, allowing other activities like construction in rural areas or IT related activities along with certain conditions being imposed, can be interpreted as an experiment to see how it plays out.

However, companies need to be prepared for the to end and should have their internal strategies in place. The services such as aviation, hotels, malls, etc. would have to wait for a much longer time as they involve direct interaction of people which will be the last set of activities to be relaxed.

Bhupendra Tiwary, research analyst at expects labour unavailability to persist even after the is lifted, as it could take time for their re-mobilisation. Also, even if the work at project sites resumes within one or two weeks post the lockdown, the onset of the monsoon season from Q2FY20E could slow down execution, going ahead, he says.

Besides, Ambareesh Baliga, an independent market analyst writes, “The relaxation will not help many of the listed players and it will be a while before activity begins for them. There could be labour-related issues.”

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First Published: Thu, April 16 2020. 13:09 IST
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