Editorial: Selective easing may cripple small businesses

The order has set off a chain reaction of sorts across India owing to the ambiguous nature of inclusions and exclusions contained within it.

For example, the order permits shops selling essential commodities to operate under strict codes of social distancing. However, it excludes roadside shops and small retail outlets that sell ‘non-essentials’ such as tea, biscuits, soft drinks, mineral water, paan, etc., in the neighbourhood. Even small kirana shops have been kept out of the ambit of operations for now. On the other hand, the government has already given a go-ahead for the resumption of construction of roads, buildings, and projects within industrial estates and municipalities. The exclusion of these small retailers, who are a very important ancillary support system for sanitation workers, delivery agents, daily wage labourers and their families is a myopic move in the purported easing of the lockdown.

Just days before the announcement of the lockdown extension and the subsequent government order, the Federation of Retailers Association of India, which represents the interests of about four crore micro, small and medium retailers from across the country, had appealed for an economic package to compensate for their losses under the Pradhan Mantri Garib Kalyan Yojana. The capital of the retailers is tied up in the stocks of products that remain unsold in their shops. They are now forced to dip into small savings to survive - to purchase food and support family members.

The ambiguities do not end here. The order also permits the resumption of servicing industries, like IT, automobiles, and air conditioning, among others. However, it was only a few days ago that we had reported that technicians and service personnel were relying on old spare parts to repair equipment owing to the non-availability of new spares. Even simple repairs require nuts, bolts, washers, spares, typically procured from small utility stores - all of which remain closed.

While easing the lockdown is certainly a welcome move on the part of the government, it could do well to come up with a comprehensive framework to enable economic activity. Else, the government would end up creating a dependence on handouts in an otherwise self-reliant, hard-working segment of society.