Raghuram Rajan: India Needs To Open Economy In Measured Way

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Raghuram Rajan: India Needs To Open Economy In Measured Way

Raghuram Rajan, former RBI governor has said that India should re-open its economy in a measured way and should not wait for the upliftment of the lockdown.

He said this in an online conversation with former Congress president Rahul Gandhi, whose video was released by the party on Thursday.

Raghuram Rajan also cautioned that India should not be divided especially in this time of crisis when there are bigger challenges ahead.

This imposed lockdown in the whole nation has hammered the economy severely. Amidst this lockdown, migrant workers are the worst hit among all. Raghuram Rajan estimated an amount of Rs. 65,000 crores would be needed to help the poor migrant workers and considering the current GDP, it could be done.

Our country’s GDP is Rs. 200 lakh crores and from which Rs. 65,000 crores is not a big amount and more than that this money would be for saving lives of poor added former RBI Governor.

Raghuram Rajan further said that upon comparing our resources with the West, fiscal resources of our country are more limited, and a decision should be made for keeping our economy intact. He added that to keep people well and alive, food is the most important thing which poor people are deprived of due to the lockdown.

Raghuram Rajan: India Needs To Open Economy In Measured Way

He and other economists have been discussing the temporary ration cards.

A forever lockdown is easy but we would be sacrificing a sustainable economy.

The economist advised leveraging its DBT network to protect lives and livelihood.

Mr. Rajan asked the Congress leader about his views on how India is handling this challenge which is pandemic as compared to the US.

Mr. Gandhi replied by saying that two countries are very different from each other, and in Indian governance, it has always been to how to control, but unluckily this pandemic cannot be controlled it can only be managed.

The Congress leader also said there is an infrastructure, but if there are divisions and hatred, that disconnects people.

Agreeing with him, Mr. Rajan said, that it is essential to make everyone believe that they are a part of this system.

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