Financial Express Building liquidity infrastructure and solution and protecting incomes required in the short-term; rebuilding trust in the long-term We looked at some of the possible impacts of social distancing in the previous article . As various supply chains get disrupted due to sudden convulsions of demand and supply, the impact will be as much social as economic. The public health systems across the world are gearing up to cope with the challenges of the virus. We detail some of the steps that policy makers, industries and companies can take to tackle the uncertainties arising from this unprecedented way of living. The fundamental premise of social distancing is that individuals keep distance from one another. The premise of human economic activity in the modern world is based on the division of labour which intricately links up the economy to social interactions. Any lack of social interaction can create significant break-ups in the economic links. This flows through not...
Financial Express Aviation is amongst the worst-hit industries in Covid-19: what might change? Akhilesh Tilotia and Sunil Bhaskaran Before Covid-19 pandemic hit India and its aviation industry, airline traffic had been growing smartly for last many years: indeed, the industry had celebrated fifty consecutive months of double-digit growth in December 2018. Airlines in India had started transporting more people annually (~140 million) than the AC coaches of Indian Railways (~130 million) over longer distances and at comparable or lower prices. The UDAN scheme helped move the number of India’s operational airports to more than 100. When India hosted its first Global Aviation Summit in January 2019, the local industry was expected to continue growing smartly to a target of a billion trips a year in the forecast-able future. Given these expectations, tens of billions of dollars of aircraft were expected to come to India – plans for setting up a lease finance industry in ...
Financial Express Covid-19 highlights the importance of and urgent need to build ‘digital cocoons’ for the whole population The Covid-19 series of lock-downs have brought very different experiences for varied segments of society: the contrast cannot be starker than the social media posts of fancy meals at home compared to the long walks back to hometowns. What explains the difference? Those who have been able to weave a ‘digital cocoon’ have done comparatively better than the real-world migrants. A migrant moves location for economic activity, whether a job, business or studies. In case of a real-world migrant, her presence at the site of the economic activity is sine qua non – there is simply no way that the activity can be performed without the person being there. In the case of a ‘digital migrant’, however, a virtual presence suffices. Juxtapose the move of migrants to their hometowns with the initiatives that many companies are now running to empower their employees to ‘wor...
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