REGIONAL REPORT
The Taj Mahal in Agra ( Shutterstock . com ). adequate portability of benefits across state boundaries . Importantly , in an urbanising India , cities and towns will need targeted support as India ’ s largest social protection programmes are focused on rural populations .
“ The response to the COVID-19 pandemic around the world has required governments to introduce social distancing and lockdowns in unprecedented ways . These measures , intended to slow down the spread of the virus have , however , impacted economies and jobs – especially in the informal sector . India , with the world ’ s largest lockdown , has not been an exception to this trend ,” said Junaid Ahmad , World Bank Country Director in India . “ In this context , cash transfers and food benefits will help the poor and vulnerable access a ‘ safety bridge ’ towards a time when the economy will start to revive .”
“ The COVID-19 pandemic has also put the spotlight on some of the gaps in existing social protection systems ,” added Ahmad . “ This programme will support the Government of India ’ s efforts towards a more consolidated delivery platform – accessible to both rural and urban populations across state boundaries . The platform draws on the country ’ s existing architecture of safety nets – the PDS , the digital and banking infrastructure , and Aadhaar – while positioning the overall social protection system for the needs of a 21st century India .”
Manufacturing value chains
COVID-19 response
According to the WHO , as of 15 March 2021 , India reported 26,291 confirmed cases over the past 24 hours and 11,385,339 confirmed cases cumulatively . There had been a surge of cases . Cases per million were 8,126 and a total of 158,725 deaths had been reported . Among Indian states at that time , Maharashtra reported the highest number of cases ( more than 2.3 million ), followed by Kerala ( more than one million ) and Karnataka ( 960,272 ). Five states , namely Maharashtra , Kerala , Karnataka , Andhra Pradesh and Tamil Nadu , have contributed more than 53 % of total cases .
In May 2020 , the World Bank Board of Executive Directors approved one billion dollars for the Accelerating India ’ s COVID-19 Social Protection Response Programme to support India ’ s efforts at providing social assistance to poor and vulnerable households severely impacted by the COVID-19 pandemic .
The COVID-19 pandemic has also put the spotlight on some of the gaps in existing social protection systems
The Government of India and the World Bank signed an agreement for an immediate release of US $ 750 million under the programme . The remaining US $ 250 million will be made available for fiscal year 2021 . This takes the total commitment from the Bank towards emergency COVID-19 response in India to two billion dollars . A one billion dollar support package was announced in April 2020 as immediate support for India ’ s health sector .
Social protection is a critical investment since half of India ’ s population earns less than three dollars per day and is precariously close to the poverty line . Over 90 per cent of India ’ s workforce is employed in the informal sector , without access to significant savings or workplacebased social protection benefits such as paid sick leave or social insurance . Over nine million migrants , who cross state borders to work each year , are also at greater risk as social assistance programmes in India largely provide benefits to residents within states , without
As argued in the McKinsey Global Institute report ‘ India ’ s turning point : An economic agenda to spur growth and jobs ’, developing globally competitive manufacturing hubs represents one of the greatest opportunities for India to spur economic growth and job creation this decade . It identifies eleven manufacturing value chains with strong potential to operate in international markets , power growth and provide long-term employment and skills pathways for millions .
“ Their potential arises from several factors . Firstly , these value chains are well positioned to capitalise on India ’ s advantages in raw materials , manufacturing skills and entrepreneurship . Secondly , they can tap into four market opportunities : export growth , import localisation , domestic demand and contract manufacturing ,” said the report .
The eleven value chains stand to benefit from a fresh , focused approach to industrial policy . This approach would not entail the sort of far-reaching bureaucratic reforms that can lower input costs and improve the ease of doing business across many sectors . Rather , the new reforms would specifically catalyse the growth of India ’ s manufacturing value chains by helping them lift their productivity , secure expertise and technology , and gain access to capital , explained the report .
“ With these reforms , and complementary actions by manufacturing companies , we estimate that the eleven value chains could more than double their GDP contribution to US $ 500 billion in seven years , while powering extensive job creation at a time when the COVID-19 crisis has pushed millions below the poverty line ,” it added .
Mumbai ’ s modern airport roof design ( Shutterstock . com ).
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