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<ul><li>Donald Trump's White House has reached a deal with the US Senate, say reports citing sources.</li><li>The Trump administration's $2 trillion stimulus plan includes $1,200 checks and a host of other measures to help middle class and poor Americans survive the economic clampdown in a bid to contain the spread of coronavirus. </li><li>Indian Prime Minister Narendra Modi has declared a complete nationwide lockdown for 21 days starting March 25 but there is still no call on the relief measures needed for millions of India's poor to survive.</li><li><a href="https://www.businessinsider.in/searchresult.cms?query=coronavirus&amp;sortorder=effectivedate" data-type="tilCustomLink" target="_blank">Track the latest news and updates on the coronavirus pandemic on Business Insider India</a>.</li></ul>Donald Trump's White House has reached a deal with the US Senate paving the way for a $2 trillion economic stimulus for the world's largest economy, say reports citing sources. The US government wants to flush cash down to the last American whose livelihood has been stalled by the clampdown on social and economic activity in a bid to contain the deadly coronavirus that has claimed over 16,000 lives around the world. What makes this deal special is the fact that the sharply polarised leadership of both the Democratic Party and the Republicans were to set to aside their differences— although after five days of intense negotiations— in the interest of the American people who live from one payday to the next. 
	
 <div type="image" title="Mitch McConnell" msid="74806037" hostid="261" caption="&amp;lt;p&amp;gt;Senate Majority Leader Mitch McConnell of Ky. walks to the Senate chamber on Capitol Hill in Washington, Tuesday, March 24, 2020. He is expected to discuss the breakthrough on the Senate floor with Minority Leader Charles E. Schumer (D-N.Y.)Photo/Patrick Semansky)&amp;lt;/p&amp;gt;"></div>



 Nearly 8,000 miles away from the Capitol Hill, in New Delhi, the Indian Prime Minister announced a complete nationwide lockdown for 21 days starting the midnight of March 25. However, 90% of India's workforce, which works in unorganised spaces without any social or financial security and savings, is still hoping and praying for sustenance money while the country unites in its fight to curb the spread of Covid-19, a deadly virus that has no vaccine or cure. 
	
 <div type="image" title="Narendra Modi" msid="74806070" hostid="261" caption="&amp;lt;p&amp;gt;FILE- Feb.3, 2020 file photo, Indian Prime Minister Narendra Modi announced a 21-day nationwide complete lockdown starting the midnight of March 25.Photo/Manish Swarup, File)&amp;lt;/p&amp;gt;"></div>



 
 Some of the key proposals in Trump's stimulus plan include that could be a template for India to follow as well: 1. $1,200 cheques to individual Americans, 2. A $367-billion loan program for small businesses, 3. A $500 billion fund for industries, cities and states, 4. A massive boost to unemployment insurance, 5. $150 billion for state and local stimulus funds, and 6. $130 billion for hospitals. So far, India's <a href="https://www.businessinsider.in/policy/economy/finance-minister-nirmala-sitharaman-speech-highlights-and-updates/articleshow/74789836.cms" data-type="tilCustomLink" target="_blank">Finance Minister Nirmala Sitharaman has announced some welcome reprieve</a> on many compliance requirements for businesses and individuals⁠— from income tax to goods and services tax, requirements under Companies Law to customs to banking, to name a few. However, according to Sitharaman, a government taskforce and its subgroups are still thrashing out the details of an impending stimulus. 
 <div type="Article" hostid="261" msid="74802999" title="Here's how a 21-day lockdown might help break the Covid-19 chain" mstype="2" mssubtype="0"></div>


 As Morgan Stanley's Ridham Desai recently said,"I do think the government, the Reserve Bank of India and others will come out with a package even to alleviate the economic crisis, because there is no point in just alleviating the health crisis, if the economic crisis goes on for a long term. Because that can result in unemployment, income loss and other pain." The breadth of India's poverty is just too huge The 2011 Census pegged India's poor population at 22%— more than one in five Indians earned less than ₹816, or ₹27 a day a month. The National Sample Survey Office showed that the average household in India spent about ₹1,500 a month in 2017. 
	
 <div type="image" title="India Daily Life" msid="74806094" hostid="261" caption="&amp;lt;p&amp;gt;A woman selling posters of Bollywood stars and Hindu deities prepares to cross a street in Jammu, India, Sunday, March 1, 2020. Millions people in the country live in poverty and many of them migrate to the cities in search of a livelihood.Photo/Channi Anand)&amp;lt;/p&amp;gt;"></div>



 A <a href="https://www.businessinsider.in/policy/economy/article/pm-modi-address-to-the-nation-is-india-ready-for-total-lockdown/articleshow/74704162.cms" data-type="tilCustomLink" target="_blank">rough estimate of the cost of handing out</a> ₹1,500 in cash to every household that needs the money, is likely to be anywhere between ₹35,000 to ₹40,000 crore, for every month that the lockdown may last. This too, will only work if the supply chain of essential items continues to work unhindered. Or else, the cash in hand is useless. And it's not just the poor. The current uncertainty makes it difficult even for middle-class families in India, who are now starting to fear for their jobs, to plan their expenses and their future. The situation is definitely a lot more dire for the poor. Some large states like Uttar Pradesh and Tamil Nadu have announced cash handouts along with the lockdown. The fate of the poor hangs in a balance in many other states and they are looking towards any support no matter where it comes from— the state government or the centre. Without the assurance that they will be protected from starvation and necessities of daily life, as the political scientist and long-time India watcher Alastair Newton warned in a recent interview with Business Insider, the likelihood of a civil unrest cannot be ruled out. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/deal-on-a-roughly-2-trillion-coronavirus-stimulus-package-reached-between-the-senate-and-white-house-including-cutting-checks-to-americans/articleshow/74805238.cms" data-type="tilCustomLink" target="_blank">Deal on a roughly $2 trillion coronavirus stimulus package reached between the Senate and White House, including cutting checks to Americans</a> <a href="https://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cmshttps://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cms" data-type="tilCustomLink" target="_blank">Here's what India wants from Modi’s financial package</a> <a href="https://www.businessinsider.in/india/news/coronavirus-updates-in-india-and-steps-taken-by-narendra-modi-government/articleshow/74723667.cms" data-type="tilCustomLink" target="_blank">A look at Indian government response to coronavirus, so far, shows some quick reactions but not enough foresight</a>

Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it

Equity benchmark <keyword id="6484188" type="COMPANY" weightage="20" keywordseo="sensex">Sensex</keyword> rallied over 300 points in opening session on Wednesday led by gains in <keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword>, <keyword id="6653" type="COMPANY" weightage="20" keywordseo="ICICI-bank">ICICI Bank</keyword> and HDFC amid mixed cues from global markets. After surging 308 points in highly volatile trade, the 30-share index was up 72.14 points, or 0.20 per cent, at 35,707.09, and the NSE Nifty rose 22.20 points, or 0.21 per cent, to 10,473.65. Top gainers in the Sensex pack included Reliance Industries, Bharti Airtel, Hero MotoCorp, ICICI Bank and PowerGrid. On the other hand, ITC, Tata Steel, Tech Mahindra, Infosys and UltraTech Cement were among the laggards. In the previous session on Monday, the <keyword id="53232" type="COMPANY" weightage="20" keywordseo="BSE-sensex">BSE Sensex</keyword> crashed over 1,941 points and the NSE Nifty tumbled 538 points, positing their biggest ever single-day drop in absolute terms. On a net basis, foreign institutional investors (FPIs) sold equities worth Rs 6,595.56 crore, while domestic institutional investors bought shares worth Rs 4,974.80 crore on Monday, data available with stock exchanges showed. Market remained closed on Tuesday on account of Holi. According to traders, domestic market rebounded from Monday's lows, but turned increasingly volatile as no respite from the rapid spread of coronavirus seems in sight. Global stocks too gave mixed signals with bourses in Shanghai and Hong Kong trading on a positive note, while those in Seoul and Tokyo dropping over 1 per cent. Stock exchanges in the US ended sharply higher on Tuesday on hopes of US economic stimulus efforts as the coronavirus continued to spread rapidly. The rupee appreciated 23 paise to 73.93 against the US dollar in morning session. Global oil benchmark Brent crude futures jumped 3.41 per cent to USD 38.49 per barrel.

Reliance Industries and ICICI Bank lead Sensex recovery which surged by 300 points

<ul><li>The Reserve Bank of India (RBI) announced steps that can release ₹3.7 lakh crore.</li><li>The steps include a sharp 75 basis points cut in repo rate and a 90 basis points cut in reverse repo rate. </li><li>Banks have been discouraged from depositing money with the RBI, and instead have been pushed to 'do whatever they can' to provide credit to those people and businesses affected by the novel coronavirus and the lockdown that followed.</li><li>The RBI has also reduced the cash reserve ratio, pushed to boost working capital loans, eased compliance requirements, and the classification of bad loans.</li><li>Banks have been permitted to trade in offshore rupee derivative market (the non-deliverable forwards market) from June 1, 2020.</li><li>Governor Das appealed to the people not to resort to panic withdrawals of money from banks and assured that the depositors' money will remain safe.</li></ul>The Reserve Bank of India unveiled a slew of measures that can together release nearly ₹3.7 lakh crore (nearly $50 billion) into the Indian economy while it fights the impact of the novel coronavirus and the lockdown imposed to contain the spread of the pandemic. The monetary policy panel decided to cut repo rate by 75 basis points and the reverse repo rate by 90 basis points. The reverse repo rate has seen a sharper cut to disincentivise the banks from depositing money with the RBI. "Banks have been depositing ₹3 lakh crore daily with the RBI in the last few days," the <keyword id="64190" type="POSITION" weightage="20" keywordseo="RBI-Governor">RBI Governor</keyword> said while citing that credit flow has stopped. “Tough times don’t last but tough people and tough institutions do,” he added. 
 
 
 
 
 
 
 
 <div type="Youtube" id="99i3lVow5gQ" title="Watch out for RBI Governor’s address to the media live at 10:00 am today" thumbUrl="https://i.ytimg.com/vi/99i3lVow5gQ/mqdefault_live.jpg"></div>

















 These are some of the highlights from the speech of RBI Governor Shaktikanta Das: 1. The new repo rate (the rate at which the RBI lends to banks) will be at 4.4% as compared to 5.15% earlier. The decision was taken after a 4:2 majority vote at the Monetary Policy Committee. 2. All commercial banks including regional, rural and others are being permitted to allow a 3-month moratorium of payment of installments on all terms loans outstanding as on March 1. 3-month deferment of interest on working capital facilities. Accumulated interest for the period will be paid after the exipiry of the deferment period.The moratorium on terms terms and deferment of internet on working capital will not result in asset classification downgrade. Banks and financial institutions must do all that they can to ensure credit flow, on easier terms, to all those affected by the novel coronavirus. 3. LTRO: Long-term redemption operations These are instruments used to avail loans for working capital. RBI will conduct long-term repo of upt0 3 year tenor to the tune of ₹1 lakh crore. Investments made by banks will classified as 'hold-t0-maturity', and not under 'large exposures'. The first tranche of ₹25,000 crore will be issued today (March 27). 4. Cash reserve ratio of all banks will reduced by 100 basis points from March 28 for a period of 1 year. This will release about ₹1.37 lakh crore uniformly across the banking system. The reporting of minimum daily CRR balance will be reduced up to June 26 to 40% from the current 80% to ease the burden of compliance on bank staff. The marginal standing facility will be increased to 3% from 2%, opening up room for banks to borrow another ₹1.37 lakh crore, at reduced interest, from the RBI under the LAF window. 5. The steps announced above can release ₹3.7 lakh crore into the Indian economy. The RBI has injected ₹2.8 lakh crore (1.4% of India's GDP) since the last monetary policy review, and after today's announcements the total liquidity injection will be to the tune of 3.2% of GDP. 6. Banks have been permitted to trade in offshore rupee derivative market (the non-deliverable forwards market) from June 1, 2020 to improve efficiency of price discovery. 7. Retail inflation has been 30 basis points above the RBI estimate in January and February 2020 largely due to spike in onion prices. However, going forward, the aggregate demand may weaken further and oil prices may fall easing consumer price inflation. "The situation is fast changing, outlook is uncertain like never before, and therefore, the Monetary Policy Committee refrained from forecasting the impact of Covid-19 on GDP and inflation," Das said. 8. The last quarter of 2019-20 India's GDP was expected to grow at 4.7%. It is now at risk, the governor said. “If everyone follows the rules, some of the growth worries can be reduced," he added. The government stimulus Finance Minister Nirmala Sitharaman announced a series of steps to give cash, food, and other necessities to the poorest of the country while economic activity remained on halt. However, the ₹1.75 lakh crore ($22 billion) sustenance package announced on March 26 <a href="https://www.businessinsider.in/finance/news/indian-stock-market-was-unhappy-with-fm-sitharamans-lockdown-package/articleshow/74828350.cms">wasn't enough to lift the market's spirits.</a> The lock down has forced many businesses to shut down and factories have had to close their doors. As a result, a few people have been forced to take unpaid leave— like in the case of <a href="https://www.businessinsider.in/business/news/coronavirus-goair-says-all-employees-will-have-pay-cut-in-march/articleshow/74806501.cms">GoAir</a>, Indigo, and <a href="https://www.businessinsider.in/business/news/coronavirus-goair-says-all-employees-will-have-pay-cut-in-march/articleshow/74806501.cms">AIESL</a> with hyperlink to the story — with the uncertainty around when the Coronavirus crisis will finally end. Not just on YouTube, but also on Twitter, many individuals are pleading with the government to provide some relaxation. Infosys co-founder TV Mohandas Pai joined in asking the government to provide at least 6 months of deferment on EMI and loan interests. <a href="https://twitter.com/TVMohandasPai/status/1243093178183385089">https://twitter.com/TVMohandasPai/status/1243093178183385089</a> It’s not just salaried employees but individuals who drive auto-rickshaws or those who drive Uber and Ola cabs who need more time to pay their loans since they won’t be able to ferry passengers during the lock down. See also: <a href="https://www.businessinsider.in/india/news/a-sobbing-child-migrant-worker-stranded-in-delhi-without-shelter-job-and-a-way-back-home-is-only-one-among-lakhs-of-his-peers/articleshow/74823346.cms">A sobbing child migrant worker stranded in Delhi without shelter, job and a way back home — is only one among lakhs of his peers</a> <a href="https://www.businessinsider.in/policy/economy/news/what-narendra-modi-can-learn-from-donald-trump-2-trillion-stimulus-in-us/articleshow/74805256.cms" data-type="tilCustomLink" target="_blank">Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it</a> <a href="https://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cmshttps://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cms" data-type="tilCustomLink" target="_blank">Here's what India wants from Modi’s financial package</a> <a href="https://www.businessinsider.in/india/news/coronavirus-updates-in-india-and-steps-taken-by-narendra-modi-government/articleshow/74723667.cms" data-type="tilCustomLink" target="_blank">A look at Indian government response to coronavirus, so far, shows some quick reactions but not enough foresight</a>

WATCH RBI Governor Shaktikanta Das unveil $50 billion ammunition to keep the Indian economy breathing amidst coronavirus lockdown

<ul><li>The focus of the first set of announcements is to provide food and cash to the poorest of poor including farmers, unorganised labour, women, self-help groups., Finance Minister Nirmala Sitharaman said</li><li>The scheme has been called <keyword id="4290903" type="PERSON" weightage="20" keywordseo="Pradhan-Mantri-Gareeb-Kalyan-Yojana">Pradhan Mantri Gareeb Kalyan Yojana</keyword> will be with immediate effect. </li><li>The size of the entire package is ₹<a href="https://m.economictimes.com/markets/stocks/news/india-likely-to-unveil-20b-plus-economic-stimulus-package/articleshow/74820627.cms" data-type="tilCustomLink"></a>1.7 lakh crore, or over $22 billion, she added. </li><li><a href="https://www.businessinsider.in/searchresult.cms?query=coronavirus&amp;sortorder=effectivedate" data-type="tilCustomLink" target="_blank">Track the latest news and updates on the coronavirus pandemic on Business Insider India</a>.</li></ul>The Indian government led by Narendra Modi has announced a financial stimulus package of <a href="https://m.economictimes.com/markets/stocks/news/india-likely-to-unveil-20b-plus-economic-stimulus-package/articleshow/74820627.cms">₹1.7</a> lakh crore (over $22 billion), under the name of a scheme called the Pradhan Mantri Gareeb Kalyan Yojana, to cushion the Indian economy from the damning impact of the Coronavirus pandemic on the country's underprivileged and the poor, according to Reuters. “The lockdown was announced by the Prime Minister on the intervening night of March 24 and March 25 and it has been in force since then. The government has been working for the poor, the migrants, the women etc. of the society since then. It’s only been 36 hours since the lockdown was announced. The package will take care of their food requirement, and several measures through direct benefit transfer are being taken to put money in their hands,” the Finance Minister Nirmala Sitharaman said. However, she did not elaborate on the fiscal impact of the steps announced today or whether the government will fund these measures via additional government borrowing. Watch the full video here: 
 
 
 
 
 
 
 
 
 
 
 <div type="Youtube" id="hIRebLyGb10" title="Union Finance Minister Nirmala Sitharaman address a Press Conference" thumbUrl="https://i.ytimg.com/vi/hIRebLyGb10/mqdefault_live.jpg"></div>























Courtesy: Press Information Bureau These are the highlights of the Finance Minister’s address on March 26: 1. The FM also announced a ₹50 lakh per person medical insurance cover for medical workers. “They are being called Gods in white costume,” she said lauding the efforts for everyone on the frontline including sanitation workers and paramedical staff, and Asha workers. This is targeted at 2 million individuals across the country. All the money to be transfered via Direct Benefit Transfer: 2. Pradhan Mantri Gareeb Kalyan Anna Yojana: Supply of foodgrain, either rice or wheat, to be doubled, and to be offered free of cost, for the next three months. Currently, they get either 5 kilograms of rice/wheat and they can get another 5 kgs after today's announcement. Aside from that, the government will also offer 1 kg of the preferred pulse, or dal, will also be given to every household free. This can be taken in 2 instalments by every household from the ration shops. 3. Farmers: Kisan Samman Nidhi, currently at ₹6,000 a year, will be frontloaded. Farmers will get the first instalment of ₹2,000 ahead of schedule on April 1. 4. Mahatma Gandhi National Rural Employment Guarantee Scheme: The wage rate will be increased to ₹202 a day from ₹182 a day currently and this will continue after the lockdown ends. This will benefit about 5 crore people across the country, increasing their income by ₹2,000 a year. 5. An ex-gratia of ₹1000 in the next three months will be given to to 300 million poor senior citizens, poor widows and poor disabled. This will be given in two installments. 6. 200 million women with Jan Dhan account holders will get ₹500 a month for the next three months. 7. Ujjwala Scheme (The government scheme gave subsidised cooking cylinders to poor households): Nearly 83 million people availing this scheme will get free cooking gas cylinders for the next three months. 8. Women self-help groups: The next announcement will help 6.3 million such groups, benefitting 70 million households. The collateral-free loans, under Deen Dayal Yojana, will be doubled to ₹20 lakh from ₹10 lakh currently. 9. For all firms with up to 100 employees (if 90% of the staff who earn less than ₹15,000 a month): The government will bear the employees' provident fund contribution, on behalf both the employers and the employees, together amounting 24% of the salary, for the next three months. 10. The Employee Provident Fund scheme will be amended to allow non-refundable advance up to 75% of the existing corpus in the individual's account, or three months' wages, whichever is lower. This is expected to benefit 8 million employees across 4 lakh companies. 11. The welfare fund for construction workers has about 3.5 crore registered people and a corpus of ₹31,000 crore. Many construction projects have come to a halt because of the lockdown. The central government will direct state governments to use the existing corpus to help this segment of workers. 12. The state governments will be requested to use the District Mineral Fund for medical screening, medical testing at the district level. This is a developing story and will be updated constantly. Keep refreshing the page. Earlier in the day, Reuters reported that Sitharaman may announce a financial stimulus package of <a href="https://m.economictimes.com/markets/stocks/news/india-likely-to-unveil-20b-plus-economic-stimulus-package/articleshow/74820627.cms">₹1.5 trillion</a> ($19.6 billion) today (Thursday). The CEO of government think tank NITI Aayog Amitabh Kant also batted for direct benefit transfer to those who lost their livelihoods due to the lockdown aimed at containing the virus. The last time she spoke on March 24, Sitharaman announced <a href="https://www.businessinsider.in/policy/economy/finance-minister-nirmala-sitharaman-speech-highlights-and-updates/articleshow/74789836.cms">some immediate steps</a> to reduce the burden of compliance and taxation on individuals and businesses of all sizes. Since then, the nationwide 21-day lock has resulted in industries coming to a halt as they figure out the logistics and <a href="https://www.businessinsider.in/india/news/a-sobbing-child-migrant-worker-stranded-in-delhi-without-shelter-job-and-a-way-back-home-is-only-one-among-lakhs-of-his-peers/articleshow/74823346.cms">millions of migrant workers</a> on the streets without a home or food. This is what some of the excerpts had recommended: The state’s first responsibility should be towards people who are at the margin and are going to lose their jobs, and should be able to provide them with a source of livelihood. And that should be in the form of a direct benefit transfer,” he said in a virtual interview with the Observer Research Foundation (<a href="https://www.youtube.com/watch?v=dGWsdvJBcgo&amp;feature=youtu.be">ORF</a>). The former governor of RBI Raghuram Rajan said that it is hard to assess the economic impact of the pandemic. However, he said that the government needs to put medical supplies etc on priority as it heads to contain the virus. "We need to spend money on medical supplies, ventilators, masks — on getting protective equipment for medical workers. That means getting every resource in. pvt, public, defence, retired — every resource. And quickly. All this will require fiscal resources and this is the higher priority," Rajan said in a TV interview. See also: <a href="https://www.businessinsider.in/india/news/a-sobbing-child-migrant-worker-stranded-in-delhi-without-shelter-job-and-a-way-back-home-is-only-one-among-lakhs-of-his-peers/articleshow/74823346.cms">A sobbing child migrant worker stranded in Delhi without shelter, job and a way back home — is only one among lakhs of his peers</a> <a href="https://www.businessinsider.in/policy/economy/news/what-narendra-modi-can-learn-from-donald-trump-2-trillion-stimulus-in-us/articleshow/74805256.cms" data-type="tilCustomLink" target="_blank">Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it</a> <a href="https://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cmshttps://www.businessinsider.in/india/news/heres-what-india-want-from-modis-financial-package/articleshow/74795064.cms" data-type="tilCustomLink" target="_blank">Here's what India wants from Modi’s financial package</a> <a href="https://www.businessinsider.in/india/news/coronavirus-updates-in-india-and-steps-taken-by-narendra-modi-government/articleshow/74723667.cms" data-type="tilCustomLink" target="_blank">A look at Indian government response to coronavirus, so far, shows some quick reactions but not enough foresight</a>

India announces a $22 billion package including cash transfers to feed and serve the poor during the coronavirus lockdown

<ul><li>Every billionaire from Mukesh Ambani to Sunil Mittal to Ratan Tata to Azim Premji has donated to the Prime Minister's fund, some CEOs have taken pay cuts but that's not enough.</li><li>The unemployment rate in India has gone from about 8% to 23% in March and there are looming fears of more job losses and salary cuts when the middle class and poorer sections of the people need money to survive and, may be, for treatments. </li><li>The Narendra Modi government can replicate the US model of offering 'payroll protection' via incentive for those firms who do not fire people during the lockdown meant to curb the spread of the Covid-19 coronavirus.</li></ul>Every billionaire worth his salt from Mukesh Ambani to Sunil Mittal to Ratan Tata to Azim Premji has donated to the fund set up by Prime Minister Narendra Modi to fight coronavirus. Founders of many unicorn startups from Ola’s Bhavesh Aggarwal to Paytm’s Vijay Shekhar Sharma and many more have taken steps to contribute in their own way. Many top bosses have also <a href="https://www.businessinsider.in/business/startups/news/ritesh-agarwal-to-take-a-100-pay-cut-oyo-sets-up-a-welfare-fund-for-coronavirus-hit-hotel-partners/articleshow/74950054.cms">taken pay cuts</a> but that’s not enough given how unprecedented the coronavirus crisis is. Just like the <a href="https://www.businessinsider.in/india/news/how-the-governments-new-lockdown-rules-will-affect-your-day-if-you-live-in-a-city/articleshow/75155813.cms" data-type="tilCustomLink" target="_blank">new lockdown guidelines</a> for the commoners, may be it is time for Modi government to outline the steps the companies and business owners ⁠— the chest-thumping patriots on other days ⁠— must abide by. There seems to be a looming fear of layoffs, job losses, and salary cuts consuming public sentiment every day. If there is anything the <a href="https://www.businessinsider.in/india/news/migrant-workers-protest-at-bandra-railway-station-in-mumbai-demanding-to-go-home/articleshow/75143150.cms" data-type="tilCustomLink" target="_blank">Bandra incident has taught us</a>, it will take less than a spark to cause another round of coronavirus contagion aside from the fact that civil unrest is the last thing India needs. <div type="Article" hostid="261" msid="75156256" title="Lockdown 2.0: Money and jobs gone, stranded migrants desperate to return home" mstype="2" mssubtype="0"></div> The level of unemployment in India went up from nearly 8% to 23% in March 2020, according to the <a data-type="tilCustomLink" target="_blank">Centre for Monitoring Indian Economy</a>. <div type="image" title="CMIE" msid="75156251" hostid="261" caption="&amp;lt;p&amp;gt;The level of unemployment in India went up from nearly 8% to 23% in March 2020, according to the Centre for Monitoring Indian Economy. &amp;lt;/p&amp;gt;"></div> We can’t save every job but we can save enough to stop the country and the society from imploding. And the Narendra Modi government can offer a helping hand like the Donald Trump administration in the US did with the <a href="https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp">Paycheck Protection Program</a>. It is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. <div type="Article" hostid="261" msid="75130701" title="India’s looming jobs crisis is starting to unravel within the first 21 days of coronavirus lockdown" mstype="2" mssubtype="0"></div> The US government agency for small businesses will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. India, as a developing country, may not afford to forego loans and therefore, the programme can be tailored to the Indian context. What are the specific steps that can be taken in India? <ol><li>The government should incentivise companies with the promise of cheap bank loans post lockdown, or tax-related incentives, as long as they have the same number of employees on their rolls as on July 1 compared to say March 31. For those who have already fired employees or staff, can be incentivised with zero-interest loans if they are able to rehire quickly and maintain salary levels.</li><li>The companies, individually or via industry lobbies, can create a separate fund, or a pool of funds that can be used to keep channel partners, distributors, dealers, and other nodes in the value chain afloat, and ensure that their staff and the salespeople are paid. The companies can either decide to forego the loan to the channel partners or get zero interest on it. </li><li>The government can either contribute a portion of the money (ike it has for the employee provident fund) to such funds right now, or ask banks to lend to these companies at zero/subsidised rates only for the purpose of keeping jobs intact.</li><li>Publicise these measures well enough that people are able to hold their employers (past or present) accountable. </li></ol>The big picture! The channel partners ⁠— from FMCG to automobiles to technology and other similar sectors ⁠— and the layers below them need to be supported so that once the lockdown lifts the chain can be revived at the earliest. The top four sectors together employ nearly 250 million in India. <div type="image" title="jobs" msid="75156326" hostid="261" caption="&amp;lt;p&amp;gt;India needs a jobs protection programme just like the one in the US announced by President Donald Trump.&amp;lt;/p&amp;gt;"></div> There are at least two intangible benefits that will arise out of this. The image of the company/promoter will get a huge fillip. Everyone in India knows how the <a href="https://www.livemint.com/Opinion/pkxDzBTGCNGCUdt7XdpRMN/What-now-Mr-Tata.html" data-type="tilCustomLink" target="_blank">Tata Group’s 'clean' image</a> has survived generations despite many allegations and controversies. This will also help the employees appreciate the generosity of the employer and reduce attrition to a great extent. The level of mutual trust and respect between the company and employee may boost commitment and efficiency over the long term. Even during the ongoing coronavirus crisis, there have been some exceptions. Reliance Industries, for example, has declared that <a href="https://www.businessinsider.in/business/news/reliance-employees-who-earn-less-than-30000-will-be-paid-twice-a-month-in-the-wake-of-coronavirus/articleshow/74775193.cms">salaries will be paid </a>twice a month for those earning less than ₹30,000 a month. Capgemini India, Cognizant and others <a href="https://www.businessinsider.in/careers/news/capgemini-india-cognizant-and-others-who-are-giving-salary-hikes-in-times-of-coronavirus/articleshow/75151960.cms" data-type="tilCustomLink" target="_blank">are giving salary hikes</a> despite business coming to a standstill due to the pandemic. <div type="Article" hostid="261" msid="75117512" title="These are the job listings in top e-commerce companies posted after April 1" mstype="2" mssubtype="0"></div> What is missing in the current support system and the stimulus? There have been many thousand jobs cut especially for those working on contract. Anecdotal evidence suggests that people employed with dealers, distributors, channel partners' sales staff of even big companies like Hindustan Unilever (HUL), Raymond, nearly all car makers, and in many more sectors, have already been ‘let go’. "Hindustan Unilever Limited (HUL) is taking all necessary measures to protect the interests of its employees, support staff, distributors and partners during these difficult times. We are committed to working on their safety, employment, salary protection, and are taking several steps on these matters. For e.g., we recently offered COVID-19 medical insurance cover to all frontline sales force and distributor employees (loaders and delivery staff) where premium for the cover is paid by HUL," the company said in a statement in response to this report. <div type="Article" hostid="261" msid="74959653" title="OYO reportedly invokes ‘Act of God’ clause to suspend payments to hotel owners says report" mstype="2" mssubtype="0"></div> The government's $22 billion stimulus is trying <a href="https://www.businessinsider.in/india/news/fm-nirmala-sitharaman-26th-march-speech-highlights-and-updates/articleshow/74825011.cms" data-type="tilCustomLink" target="_blank">to support the poorest of the poor</a> with direct cash transfers, subsidised grain and cooking gas etc. the rich have the wherewithal to sustain a longer lockdown, but the same safety net is not available to those who are considered middle class in India, especially those who work in the unorganised sector. Even those earning, say, ₹50,000 a month may not have savings to sustain a family during a lockdown without a job and cash flow. However, Prime Minister <a href="https://www.businessinsider.in/india/news/what-are-the-7-rules-during-lockdown-as-per-pm-narendra-modi/articleshow/75134637.cms" data-type="tilCustomLink" target="_blank">Modi expects him or her to continue paying</a> their domestic help, the guy who washes their cars or motorcycles etc. What is the private sector doing? Cribbing! One executive after another is arguing about how the government has not done enough to make this lockdown easier than what it is. Calculating! Companies across the board are making lists of people who can be fired. It is not like FMCG sales have come to zero but people lower in the value chain have . It is justified to a certain extent. <a href="https://economictimes.indiatimes.com/news/economy/finance/view-one-contagion-is-more-than-enough-for-india/articleshow/75153054.cms" data-type="tilCustomLink" target="_blank">For example</a>, borrowers have been exempt from repaying loans for three months but the non-banking finance company who they borrowed from is not. As is the case with most bureaucratic decisions, this could be an oversight and this can, and should be corrected, soon. Clamouring! Aside from this, there is a clamour for everything from corporate tax cut to GST relief. Many of them have donated money to the PM-CARES fund but it is unlikely to trickle down to the exact value chains that companies have a stake in. <div type="Article" hostid="261" msid="75143211" title="Hero MotoCorp supports lockdown extension, seeks stimulus package for India Inc" mstype="2" mssubtype="0"></div> What should the companies do? Be realistic! The government or the companies or the billionaires, or any institution for that matter, cannot protect or save everyone but efforts have to be made to go as deep as we can reach with the support. Be generous! When a bank seems to be going down, one of the first steps that the Reserve Bank of India (RBI) takes is to ask the promoter to bring in more capital. Other businesses can look at the current crisis the same way. Billionaire promoters may lead the way and bring some additional capital to the table, let it trickle down the value chains that will help them thrive during better times. It may be time for Prime Minister Modi to call for the support of his fans in India Inc to ensure that his poorer fans don’t get disillusioned or angry. SEE ALSO: <a href="https://www.businessinsider.in/india/news/no-lifts-no-group-lunches-and-other-guidelines-that-offices-factories-should-follow/articleshow/75154853.cms" data-type="tilCustomLink" target="_blank">No lifts, no group lunches and other guidelines that offices, factories should follow</a> <a href="https://www.businessinsider.in/india/news/cabinet-to-approve-pension-contributions-advances-announced-by-the-fm/articleshow/75153467.cmshttps://www.businessinsider.in/india/news/cabinet-to-approve-pension-contributions-advances-announced-by-the-fm/articleshow/75153467.cms" data-type="tilCustomLink" target="_blank">Cabinet to approve pension contributions advances announced by the FM</a> <a href="https://www.businessinsider.in/india/news/all-agricultural-and-horticultural-activities-will-resume-from-april-20-and-create-jobs-for-daily-wagers/articleshow/75154111.cms" data-type="tilCustomLink" target="_blank">New guidelines for all agriculture and related activities that can restart from April 20</a> <a href="https://www.businessinsider.in/policy/economy/news/what-narendra-modi-can-learn-from-donald-trump-2-trillion-stimulus-in-us/articleshow/74805256.cms" data-type="tilCustomLink" target="_blank">Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it</a>

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Inside the $2 trillion US economic stimulus⁠— and what locked-down India can learn from it

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Reliance Industries and ICICI Bank lead Sensex recovery which surged by 300 points

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WATCH RBI Governor Shaktikanta Das unveil $50 billion ammunition to keep the Indian economy breathing amidst coronavirus lockdown

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India announces a $22 billion package including cash transfers to feed and serve the poor during the coronavirus lockdown

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India needs a ‘jobs protection programme’ like US and the billionaires must lead while the government helps

Sriram Iyer

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