Lockdown extended till May 3: Here is how corporate India has reacted

Prime Minister Narendra Modi, on April 14, extended the country-wide lockdown unil till May 3 with more stringent measures.

The previously-announced 21-day lockdown was supposed to end on April 14 but was extended by the PM after consultations with state chief ministers who had expressed the need for another 10-15 days to combat spread of the coronavirus pandemic.

After PM Modi’s announcement, the reactions from corporate India came fast and quick. We have collated most of them for you here.

Kiran Mazumdar Shaw, the CMD of Biocon, told CNBC-TV18 that, as the cases were rising, this was an “important and right decision taken by the prime minister.” She added that people did not realise the importance of stopping the spread (of COVID-19).

Pawan K Goenka, Managing Director - Mahindra & Mahindra, took to twitter to laud the move. "I am sure a difficult decision to extend lockdown to May 3rd but I believe the right decision. It is up to all of us to ensure that the PM does not have to extend it further. Please follow all the rules and discipline of lockdown. Stay Safe." (sic)

I am sure a difficult decision to extend lockdown to May 3rd but I believe the right decision. It is up to all of us to ensure that the PM does not have to extend it further. Please follow all the rules and discipline of lockdown. Stay Safe. @PMOIndia @MahindraRise

— Pawan K Goenka (@GoenkaPk) April 14, 2020

Others, however, pointed to the economy and people’s livelihood, with Harsh Mariwala - the founder-chairman of Marico - noting the government had “given preference to live over livelihood.”

He told CNBC-TV18: “We are not operating anywhere near full capacity and need to have a strong economic relief package. There are shortages as far as consumers are concerned and unless supply issues improve, shortages will continue. Sectors such as aviation, hospitality, and MSMEs are in bad shape.”

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Underlining the IT sector perspective, Debjani Ghosh - the president of NASSCOM - said that 90 percent of the employees were working from home. She added that global clients gave feedback appreciating how the sector had responded to the challenges.

“The key worry is that there is enough infra support like broadband speeds and power supply. It has not been easy for the IT sector and we need to see how quickly the global economy can recover,” she said.

Ghosh added that, within the IT sector, small IT companies and technology companies are the most vulnerable. “We have asked for Rs 3,600 crore tech SMEs where the pain is the most,” she said.

Deepak Shenoy, the founder of CapitalMind, also pointed out the need for stimulus. He tweeted: "I hope we get some details of a stimulus package tomorrow. Telling industry not to lay off is fine in speeches, but the government has to pay for it." (sic)

I hope we get some details of a stimulus package tomorrow.

Telling industry not to lay off is fine in speeches, but the government has to pay for it.

— Deepak Shenoy (@deepakshenoy) April 14, 2020

The Federation of Indian Export Organisation (FIEO) was scathing in its response, stating: “We expected the PM to come out with some economic measures. We are disappointed that a calibrated approach on opening of economy not announced. (sic)”

Pointing to Spain, which has suffered huge loss to life due to COVID-19, the FIEO added: “Even Spain has opened its economy in a calibrated manner. MSMEs will not be start even if there is some relaxation. How can workers be paid when there is no money? (sic)”

Also Read: PM Modi says would consider relaxations from April 20 in areas with no cases

TV Mohandas Pai was also unimpressed. He told CNBC-TV18: “The poor are the first priority for India; lack of liquidity for MSMEs is the other big issue. Liquidity needs to last till business comes back or 25 percent of the MSMEs will have to wind up operations if no financial assistance.”

He added that one lakh crore of refunds were due to the people and the government needed “to give the money back to people”. “Layoffs will create a human catastrophe. The government must open up infrastructure; strengthen roads, ports at this time. The government is exploiting the situation; holding on to people money and paying 6 percent interest while industry has to pay 10-12 percent,” Pai said.

Speaking about the PM’s request to not lay off people, Pai said that eight crore people are on the payroll of the Employees’ Provident Fund Organisation (EPFO) and PFI.

“The PM may have appealed to not lay off people, but where is the cash? Companies need money if they are to heed the PM and not lay-off people. The United States is providing companies with money to keep people on the payroll. We cannot expect a person to live on Rs 500-2,000 a month and some rations and a gas stove,” he noted.

The 19-day extension till May 3 brings the total period of lockdown to 40 days. Interestingly, the term quarantine literally means “for 40 days/40 days period” in Italian – as was the isolation period employed in Italy during the outbreak of the bubonic plague.

Noting this Sachin Bansal tweeted: "Quarantine literally means 40 days isolation." (sic)

Quarantine literally means 40 days isolation.

— Sachin Bansal (@_sachinbansal) April 14, 2020

Notably, the May 3 date has been given keeping in mind the public holidays of May 1 (workers’ day), May 2 (Saturday) and May 3 (Sunday).

Also Read: Coronavirus state-wise tally April 14

Besides corporate India, former Finance Minister and Congress leader P Chidambaram also reacted to the lockdown extension with: “We understand the compulsions for a lockdown, but beyond that what?”

He further said that he understood and supported the decision of the lockdown, adding: “Number one priority should be to put cash in the hands of the poor. Number two priority must be to revive the economy. Disappointed with the PM’s address is that there was not a word about how the poor are supposed to survive or about the economy.”

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