Coronavirus pandemic| India Inc may not be prepared for partial resumption of business activities

Prime Minister Narendra Modi on extended the lockdown till May 3 but allowed select additional activities which will come into effect from April 20, 2020, only in non-containment zones.

The document said that "additional activities as permitted in these guidelines shall be implemented in a phased manner, after making all arrangements necessary for strict implementation of the guidelines."

Production and industrial activities have been allowed to resume but with certain caveats like, arrangements need to be made for the stay of workers within the premises of the industrial units and/ or adjacent buildings. The transportation of workers to work place would be arranged by the employers in dedicated transport by ensuring social distancing.

While these are essential in controlling the spread of the pandemic, partial commencement of business is not something that India's industries know how to brace for.

"The kind of infrastructural wherewithal  needed to provide accomodation and transportation isn't something that all industries have the budget for. It increases fixed costs," an official in the human resources department of a FMCG company said on condition of anonymity.

Ensuring social distancing in production units is also a tall task, the official said.

In Charts | Economic impact of lockdown on Centre and states

These are concerns that have also been voiced by leading figures of India Inc. RC Bhargava, Chairman Maruti Suzuki, has said that making lodging arrangements for more than 20,000 workers of the company isn't possible in the current set up but a final decision on this would be taken only when the guidelines come into effect.

The sentiments have been echoed by TVS Motor chairman Venu Srinivasan, who has also said providing lodging for 5,000 employees would be difficult.

Track this blog for latest updates on the coronavirus outbreak

Barclays research has estimated that India's loss of economic activity could be $234 billion in the lockdown period, resulting in zero percent GDP growth this fiscal. ICRA, however, expects GDP to shrink by 1 percent in FY21.

It is being estimated that the extended lockdown may cost about Rs 17.78 lakh crore, even as every sector, from travel and tourism, manufacturing, to auto, is reeling under Covid-19's impact.

"It is much better to have economic activity with restrictions than no activity at all," said Deepto Roy, partner, Shardul Amarchand Mangaldas and Co.

Experts feel that the home ministry guidelines for Lockdown 2.0 has provided significant relaxation for many parts of the manufacturing industry.

"This is timely and necessary, since not only are manufacturing activities vital for the economic revival, they are required to kickstart supply of necessary goods to a market struggling with supply chains," Roy said.

Follow our full coverage of the coronavirus outbreak here