Further extension of lockdown may create need for ‘helicopter’ money

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Hitherto top ten metro cities are considered as strength of India in industrial revolution, financial strength, top tax collection centres and employment generation centers. Now the same Metros have become a big burden due to rampant spread of COVID 19, virus, which destroyed the economic fabric of the country.

The top 10 cities as per 2011 census were Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, Pune and Jaipur. All these cities have international airports and industrial estates, economic clusters, huge employment potentiality due to which it attracts influx.

Some of the outskirts of the above cities are in top 30 cities list such as tri-cities like Thane, Kalyan and Vasai-Virar near Mumbai, Pimpri Chinchwad outside Pune , Ghaziabad outside Delhi are also highly developed centres industrially. In this list three major ports Mumbai, Chennai and Kolkata handle 60% of the exports and imports of the country. So shipping activities also came to standstill position in the country.

After the breakdown of COVID 19 virus all the above 15 cities were also in the news everyday posting positive cases and delaying the withdrawal of Lockdown. It also delayed the declaration of stimulus package-2 for MSME sector and large industries.

With this, a grave situation and a fear among the industrial sector is created. Hence, further extension of Lockdown after May 3 is expected to result in a huge loss of over Rs 7.50 lakh crore. This may also hamper the governments from declaring a financial package. Then Helicopter Money scheme is the only solution in these 15 cities as suggested by the Telangana Chief Minister Chandrasekhar Rao. That means printing excess money say Rs.20,000 per worker and distribute to industries and Rs.10,000 per person in these 15 cities. That means around Rs.5.50 lakh crore to be distributed as it was done in Japan in 2006.

Let us hope that such situations does not arise. Let us pray God and stay at home.