In a statement, he said the uncertainties associated with the imposition of “mini lockdowns” should be done away with.
Banerjee said with the easing of restrictions and the economy entering an “Unlock” phase from June, the high frequency indicators which are coming in have been showing a material improvement as compared to the multi-year lows seen in April.
“Although it is not possible to predict the course of the pandemic, a dashboard approach, triggering predictable responses based on the progression of infections, can reduce uncertainty and boost both consumer and industry confidence, which in turn will support demand and investment recovery”, he said. Further, in order to ensure that the supply chains function seamlessly across state and district boundaries, including the containment zones, the latter should be limited to micro areas instead of a wider area, the Director General of the key industry body said.
He said the government has played a big role in driving the nascent recovery process by providing direct cash and food transfers to the rural and urban poor.
“In a significant confidence building measure, it is encouraging to note that the government dues to the industry have started coming in, which are likely to serve as a big and direct liquidity booster to industry.”