How to revive Economy?

GDP has tanked nearly 24%. Many industries are closing and the economy has suffered a major setback hence the prime question is how to revive the economy? Here I present a 4 point plan for the revival of the economy. 

1. There are four engines of the economy namely private consumption, government expenditure, export, and business investment. Out of this, private consumption will remain subdued due to job losses. Hence we need to fuel the other three engines. For government expenditure, we need to launch the mega-scale infrastructure and technology projects. However, the government is reluctant to invest heavily because of the constant threat to Indian sovereignty by China and Pakistan. For exports, we need to incentivize the industries in basic goods, in terms of tax benefits. Food, Drugs, Online education, and Technology are the areas that could be targeted at this hour.  For business investment, we need to provide interest-free/low-interest loans to companies/industries.  In the Indian context, this loan is most needed by small and medium businesses. However, there is a big risk in giving a collateral-free loan. Hence, it is advisable to use a family-level loan facility where the CIBIL score of all the family members will be interlinked and downgraded in case of failure in repayment. This will ensure some sincerely on part of borrowers. 

2. Create a one-stop portal where all the items which are being imported from China are listed and full life cycle development activity support is provided to businesses in setting up those industries in India. The major challenge today is the lack of ancillary product industry and information asymmetry for medium businesses. Hence the government needs to handhold the businesses. Let us understand this through an analogy. If the employees are not able to do a certain job then the best way to make them realize about the job is to give them a demo. What India needs today is a demo from the government. Let the government crack some problems in certain areas in limited geography and then let the private sector take over the challenge at all India level so that it can focus on other challenges. 

3.  Reform the land acquisition act so that a large chunk of land is available for mega projects. This is necessary for urban infrastructure, backward-forward linkages, and productive utilization of national assets.

4. Invest in technology. Release open problem statements. Ask people to develop a prototype and take series A fund or seed fund from the government without any cost. Motivate college going students to solve the common problems which hamper Indian's day to day life. For instance, application for waste management, application for bus tracking, application for queues in a public hospital, or vehicle pooling. Rather than giving individual subsidy, provide an institutional subsidy and track and monitor it through proper ranking, indexes, progress reports etc.

Covid and China are the biggest threat to India's economy and Sovereignty. Hence, a concrete detailed plan is the only way out for India.