Key Takeaways from the Discussion:

• Germany was expecting an economic downturn in 2020. Hence, when Corona struck, the country was partly prepared for the economic challenges.

• In 2020, GDP of Germany is expected to contract by 6%. Service and Transport sectors, especially, aviation have suffered badly.

• Germany is basically an export driven nation. Production issues in countries like China have seriously hampered the production capacities and ability to re-export, apart from shrinkage of domestic consumption. 

• There is suggestion from Germany’s federal health ministerto repatriate important pharmaceutical productionto Europe and which is a sensible approach.

• Around the world, we see a political knee –jerk reaction to increase autonomy and reduce reliance on foreign goods.

• On the other hand, we have global peace because of economic and trade inter-linkages. Countries which have open economy prosper more than those with closed economies, traditionally.

• Using National Disaster Management Act, the executive is doing its best to tackle the pandemic fallout. The major problem now is the economic situation.

• In the second half of March, money was transferred to poor people’s Jan Dhan accounts. The government’s initiative of JAM (Linking Jan Dhan, Aadhaar and Mobile numbers) has proved to be a boon today.

• The government wants no one to starve. It has provided three months of rice or wheat to the poor people. The granaries of the nation are full.

• All the State Governments have played a greatrole in managing the pandemic.

• The Covid crisis has made us think of investing more in the health sector.

• Even in remote areas, facilities are now being provided to treat people. The Gram Panchayats are doing a great job and they have been empowered.

• Lakhs of migrant workers walking to their native places is very unfortunate. Hardly 7 to 8% of our workers are in organised sector. Our labour rules are framed for the organised sector.

• A cess is now collected from building projects for the welfare of construction workers. Some benefit is provided to these workers from the funds. Similar cess is collected for the welfare of tea plantation, beedi workers, etc. 

• Bringing all the unorganized workers under labour rules is the big challenge now.

• Despite many labour acts in force, there are many violations in compliance. Thus, the interest of labour has not been protected in India, to the extent it has happened in developed countries.

• As part of labour reform initiatives, the labour ministry has decided to amalgamate 44 labour laws into four codes—on wages, industrial relations, social security and safety, health and working conditions.

• One code on wages has been approved by the Parliament and the other three are in the process of getting approved. These codes, when passed, will immensely benefit the labour force.  

• The Prime Minister’s announcement of Rs 20 lakh crores is definitely a booster dose for our economy.

• The Prime Minister has prescribed ‘AatmaNirbhar’ –Self Reliance for India and this is a positive step. We should also aim for Self-Independence or ‘Swawlambi.’ 

• There has to be equitable distribution of Central funds to the States. The Centre should not thrust some of the programs which are not useful to the States.

• Many bureaucratic tangles between the Centre and the States can be resolved smoothly if the State Chief Minister or Chief Secretary has a direct dialogue with the Union Government.

• There is a need to provide social security for all the labour force and farmers.  

• The PM took a timely decision on the lockdown. It was expected that industries would take care of the labourers. This did not happen and led to the migrant crisis which is a big tragedy and should have been avoided.

• In certain industries, flexibility relating to the number of working hours can be worked out and it has to be done with the consent of the labour, rather than the trade union. 

• The Finance Minister’s announcement of ‘One Nation; One Ration Card’ is a big reform and will benefit the migrant workers.

• We should make use of Aadhaar and Technology and endeavour to keep an updated and live database of all workers. 

• A balanced and comprehensive approach is the best option: Nationalizing production of strategic goods but keeping the supply chain fit for the future. 

• Thanks to pushing for fiscal responsibility on the part of federal and state governments and reducing new borrowings, Germany has ample resources to draw from, to tackle the Corona crisis.

• Germany operates a social security system whereby the state covers a part of the pay reduction for workers who have to go into short-time working. This model may be followed in India too, in the future, to avoid migrant labour crisis that we witness now.