Narendra Modi mesmerized Indian electorate with his convincing approach for accelerating the economic growth to benefit of all. However he was not allowed free hand to deliver on his promise. He went to the other extreme on two occasions, first through demonetization to slow down the growth rate and in March this year his choice of the lockdown on all economic, social, cultural and religious activities out the economy in the reverse gear. The real reason for his extremely harsh measure remains shrouded in mystery but it was justified by the saying that world has meaning only if one can live. In forty days he realized life has meaning only if world exists. He sought to introduce relaxation in the rigidities of the Lockdown. The signs indicated the signs of revival in May-June. But the states imposed their restrictions as locking up population in their homes facilitated governance. The economy relapsed again in negative mould. The annual report of the Reserve Bank details the road blocks to even pace of the economy. The expenditures were confined to only on non-discretionary needs. The discretionary expenditures were out on hold due to the lockdown. In other words, people were spending only on their food and on their roof. All other expenditures that give momentum to growth were put on hold. All avenues of hospitality, entertainment and related activities were on hold due to the Lockdown.

The annual report does not dwell elaborately the consequential of halt of all activities of daily earners through their services. Sixty per cent of population could not afford to spend on their roof in cities and two and half million families moved to their birth places. The Prime Minister had not calculated or anticipated their woes and their responses. His finance minister declared 44 hours later of provision of Rs. 1.80 lakh crore for free distribution of five kilo grains per month per heard for three months. Thus food needs were looked after but without earnings, through daily activities they found expenditure on retaining roof over their heads was not easy.

The major casualty was the education. It does not find even a mention in the RBI report. The private schools in urban sectors adopted new method of education through use of internet grids. Their students, mostly of middle class could afford and adopt new method but the public sector schools managed on meager budgets by state governments, municipal committees or Panchayat did not have enough funds or willing volunteers among their teaching staff to adopt new practice. According to a report 23 per cent Indians do not have mobile phones. A large lot among those that have mobile phones do not have data transfer capacity. They use their mobile phones for verbal exchanges only. Teachers in most schools have interest in their pay packets at the month end.

The RBI report recommends the increase in discretionary spending like on transport, recreation and hospitality. And all three sectors remain out of bonds. The Air and train services are not resumed. Theaters, cinema halls and hotels remain beyond access. But there are other road hindrances to revival of industrial productions, first and major factor is lack of demand, second is unavailability of working hands to make wheels move. Most migrant labour may be willing to be back on their assembly lines but unavailability of transport means stand in their path. Many industrial units also face the sh9ortage of many parts that are made in small scale units. They could not resume production as they either fall in red zones or their working hands reside in red zones. In other word, unless the states withdraw their lockdowns to restore entire country back to normal times, productions cannot be resumed though demand at home and abroad need to be revived.

The middle class families lived for four months in a completely different style. It will take them some time to resume their old life style in work passions. They were happy as their expenditures had come down drastically. The house hold chores were managed within family. The women who had moved out of their kitchen duties to lead what they believed to be modern life had to attend to their household chores. Their men folk were happy that the lower classes had vanished to their villages and even beggars were no more visible. But the RBI report holds enough indicators to suggest they ought to be prepared to meet the costs of the charities offered by the government to mitigate hardships to lower classes. The report also indicates that Rs. 21 lakh crore offered by the Prime Minister as assistance is likely to be consumed in revival and not in stabilizing productions in small units.

In other words, the central government would need other avenues and methods to be mop up the revenue as the states have already raised their demand for their share in the General Services Tax. The former finance minister had promised to make good short falls in their GST revenue. The closed markets and economic activities have left a big dent. The demand was sounded. In the meeting of the state finance ministers committee attached to the GST council the demand was raised, bugles were blown to make the finance Minister Nirmala Seetharaman to lose her sleep.