Almost every billionaire in the country has donated towards the PM Cares fund to help fight the coronavirus. Even the CEOs of the startups like Ola, Paytm have donated and several other industry top people have taken pay cuts during this lockdown.
The government should also announce some guidelines for the companies and their owners just like it announced for lockdown guidelines to the common people. The fear of losing jobs is increasing day by day. Unemployment in the country has increased from 8% to 23% in March 2020, according to the Center for Monitoring Indian economy.
The mission here is not to save every job of the individual in the country. But we can try to save enough jobs to stop society from imploding. The Indian government should offer special incentives/programs just like the US government’s Paycheck Protection Program. This is a loan offering program to help small businesses to pay their payrolls to their employees.
Additionally, the US government will forgo all the loans issued to the small businesses if all their employees are on the payroll for 8 weeks and the loan amount is used for payrolls, mortgages, rent, interest, bills, etc. India, as a developing country, might not cancel the loans but can implement different incentives to protect small businesses.
Here are some of the steps which can be taken by the Indian government
1. The government can offer bank loans with minimal interest only if all the employees are maintained on the payroll, post lockdown.
2. For the firms which already fired some of their employees, zero-interest loans can be offered if they are planning to rehire their fired employees.
3. The companies can create a fund in order to support the supply chain.