Coronavirus: Major parts of productive states locked down

Economic activities are yet to resume fully in 78% in area of India’s 10 states, including Karnataka, which contribute more than three-fourth of the country’s gross domestic product of about Rs 211 lakh crore. But they have only a fifth of their geographical areas falling under the green zone.

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Services, which make up 53% of the economy, are likely to be the most affected with trade, hotels, transport, communication & broadcasting only partially operational during the lockdown.

These 10 states –- Maharasthra, Gujarat, Karnataka, Tamil Nadu, Andhra Pradesh, Uttar Pradesh, West Bengal, Delhi, Telangana and Kerala -- together account for Rs 163 lakh crore, which is 77% India’s overall GDP of Rs 211 lakh crore. The rest of the 23 states and Union Territories contribute Rs 48 lakh crore.

But only 72 of 327 districts in these states are in the green zone. The country’s most industrialised state -- Maharashtra -- has 14 of its 36 districts in the red zone, 16 in orange and only six in the green zone. This is followed by Tamil Nadu, which has 36 of its districts in red and orange zones and only one in the green. Gujarat, Andhra Pradesh and UP have the maximum number of their districts in the red zones. Most of the districts in red zones are industrial districts.

Industrial activities in green zones are permitted, mostly in orange zones. Some of them are allowed to resume in the red zones of urban areas, mainly in SEZs, export oriented units and industrial estates. Activities are subject to social distancing norms.

Industry, which accounts for 27% of the GDP, has been impacted mostly because of disruption in the assembly lines of production. Those industries in the green or orange zones, have their supply chain falling under the red zone districts. Hence, production cannot resume even in green zones until activities fully resume in red zone districts.

This is one of the reasons why Maruti, India’s largest car manufacturer, despite having obtained permission to resume business activities in one of its plants near Delhi, has not yet begun production.

Such is the state of affairs that industry body CII on Sunday requested the government that the top districts should be identified based on their contribution to the country’s GDP, or presence of industrial estates and clusters or registration of enterprises in that region.

Instead of the current practice of classifying the entire district as a red zone, there is need for classifying zones as containment, orange and green within an industrial district, it said, adding that economic activities with varying degrees of relaxation, should be permitted in all those areas.