This report, prepared in April 2020 by the Task Force constituted by the Government of Rajasthan, presents a comprehensive strategy to revive the state's economy amid the COVID-19 lockdown. Recognising that an extended shutdown could trigger collapse in livelihoods, hunger, and a permanent contraction of the productive base, the Task Force argues that economic activity must be calibrated rather than suspended outright. It draws on inputs from senior economists including Dr. Raghuram Rajan, Dr. Kaushik Basu, and Dr. Urjit Patel, alongside industry bodies such as FICCI, CII, and Assocham, with research and drafting support from Indicc associates.
Structured across four sections, the report assesses the macroeconomic impact of the pandemic, sets out a framework for cooperative federalism between the Centre and the State, lays out detailed sectoral protocols for primary, secondary, and tertiary activities, and recommends institutional measures to rebuild economic confidence. Central to its design is a district-level traffic light system, dividing Rajasthan's 33 districts into Red, Orange, and Green categories, that links the easing of restrictions to the local spread of contagion and allows supply chains, agriculture, and industry to resume in safer zones while hotspots remain contained.
• Calibrated lockdown framework: classifies districts into Red (more than 5 cases), Orange (1 to 5 cases), and Green (zero cases) categories, with graduated permissions for retail, transport, mining, and industry, and proposes empowering District Collectors as Enforcement Officers with extraordinary authority in hotspot zones.
• Centre-State fiscal coordination: urges the Government of India to open an interest-free Ways and Means Advance window of about Rs 1 lakh crore for states, provide an equivalent general purpose grant, mobilise about 4 per cent of GDP through sovereign debt for on-lending to states, and defer State Development Loan repayments by three months.
• Sectoral revival roadmap: prescribes zone-specific reopening protocols for agriculture, dairy and animal husbandry, mining, food processing, textiles, cement, pharma, auto components, and tourism, supported by Standard Operating Procedures, social distancing benchmarks, and worker testing requirements tailored to each district category.
• MSME and informal sector support: recommends seed capital grants alongside Mudra loans, relaxation of NPA classification, salary reimbursement or GST credit equivalent to half of six months' wage bills, interest waivers, and easier long-term credit through regional rural banks, cooperatives, and self-help groups to prevent mass bankruptcies.
• Protection of vulnerable groups: proposes monthly stipends at minimum wage for BPL and MGNREGA-registered families in lockdown areas for up to three months, ration and shelter support for returning migrant workers, low-interest credit for Farmer Producer Organisations on the lines of Tamil Nadu's 4 per cent model, and revolving fund infusion into Self Help Groups.
• Institutional and confidence-building measures: recommends appointing a Chief Public Health Officer to anchor pandemic response, empanelling transport agencies at fixed rates to keep supply chains moving, clearing pending government and PSU dues to inject liquidity, and suspending most prior approvals for new industry on the lines of the Rajasthan MSME (Facilitation) Act, 2019.
