India needs to put more monetary muscle into its people: Raghuram Rajan

Last updated on February 13th, 2023 at 03:56 pm

Veterans and former employees are proving to be of great help to the serving Indian administration in thinking out the best solutions to save the economy from sinking in the ongoing fight against corona virus outbreak.

Some examples include Narayana Murthy and ex RBI governor Raghuram Rajan. Rahul Gandhi is said to have been in numerous discussions with the likes via social media platforms to discuss the best course of action. A recent interaction with economist Mr. Rajan is being streamed on various social media platforms and asked questions over whether India’s approach should ape the west. In response Mr. Rajan was quick on his feet to say that the approach is working with a nation full of people who feel protected and taken care of under such leadership. But a lockdown cannot go on forever and the Indian administration will have to do something quickly to lift the lockdowns systematically.

In Mr. Rajan’s estimate, on Gandhi’s asking, he said that India does need close to Rs. 65000 crores to take care of its needy and poor. India is one of the nations been earmarked with the highest grain reserves and the lowest dissemination numbers.

Also, according to Mr. Rajan, and many other economists, India’s daily wage workers and laborer population are getting the worst of the lockdown. Aid needs to reach them before huger itself becomes the bigger reason for India’s population to perish that the virus outbreak itself. But he also believes that this is a time for India’s industry to make the best use of the lockdown and find impetus to innovate and grow. So, the lockdown has both its advantages and disadvantages that India will have to find a balance between.

According to Christopher Wood, Global Head of Equity Strategy at Jefferies, “Lockdown in countries like India and Indonesia are more disastrous for human welfare and economies since there is no help for small businesses nor are there unemployment benefits.”

Read: COVID-19: India Inc assists government in reviving economy

Congress Leader Rahul Gandhi has been vocal against the Narendra Modi government’s action of extended lockdown. While he did try and instigate Rajan to agree to his side, Mr. Rajan has presented a well-balanced picture of where India stands and needs to move ahead. He concluded on the thought that “we cannot win this battle with a divided house. Social harmony is important in such times of crises.”

The Infosys founder NR Narayana Murthy has estimated that the lockdown needs to open sooner because it will devastate the lives of poorer people in India. “India must accept the coronavirus as the new normal,” Murthy has concluded while speaking to the Economic Times.