India needs to resume its economy as fast as possible so that people start having jobs, for which have been lost due to the COVID-19 situation, said by former Reserve Bank of India Governor Raghuram Rajan. In an interaction with former Congress president Rahul Gandhi, Rajan said India needed to be quick in resuming the economy and handling fresh COVID-19 cases quickly without having to go for a next lockdown, which would be a devastating option for the entire country.
He stated that India needs to be cleverer about reopening the economy. If the country faces a surge of cases after the government lifts the restrictions then questions will arise on how successful the lockdown was, Raghuram Rajan said, which might push the country into another lockdown.. He also raised concerns around gig economy of the country. People in these sectors have suffered a great loss, some have lost part of their income and many have lost their jobs.
In a 30-minute digital conversation released by the Congress party Thursday, Rajan said further lockdowns after reopening could be devastating. The conversation was publicized on Congress’ social media handles with the tagline #RahulShowsTheWay.
In that chat, Rajan said ensuring workplaces are safe and how to transport people are all aspects that need to be thought off. He stressed the need for a tremendous expansion in the economy to create good jobs. Citing unemployment data from the Centre for Monitoring Indian Economy, Raghuram Rajan said 100 million people are being put out of work through unemployment or exit from the labor force. Rajan also added that India will need a budget of Rs 65,000 crore to help the poor when asked how much money would be required to help the poor.
At last Rajan also raised his concerns on the current testing rate of corona virus in India, contending that it was nowhere close to the US, which now has the highest number of corona virus cases. As per their words they need to open up in a measured way and as fast as possible. They don’t have the capacity to support people for a long time as we are a relatively poor country. Rajan also told that they have seen a progressive decline in our economic growth in the past years especially when there are so many young people.