India needs 65,000 crore to help the poor: Raghuram Rajan.
India needs 65,000 to help the poor: Raghuram Rajan.
In conversation with Congress former President Rahul Gandhi, RBI’s former Governor and economist Raghuram Rajan talks about Indian economy post coronavirus pandemic. Raghuram Rajan discusses the economic crisis looming over India and the measures necessary to tackle this crisis.
The former RBI governor, Raghuram Rajan says that India needs Rs 65,000 crore to help the poors amid Covid19 outbreak. He also calls for effective implementation of the government’s direct benefit transfer arrangements.
“We need Rs 65,000 crore to help the poor amid the coronavirus crisis. Our GDP is Rs 200 lakh crore out of which 65,000 is not a huge amount,” answers Rajan to Rahul Gandhi’s question. Raghuram Rajan also adds that India can afford this amount.
Raghuram Rajan is talking about the current economic situation of India as well as other countries on Rahul Gandhi’s show. Rahul Gandhi has started a video show to interact with Indian as well as global experts. He will be holding a series of interactions with such experts to discuss the impact of novel virus on the economy and health.
Rajan’s view on the post-coronavirus scenario.
About the post-coronavirus scenario and if India could benefit from the ongoing pandemic, ex-RBI chief shares his views about everything. “Such incidents rarely have positive effects for any country. But there are ways the country can take advantage of it.”
Raghuram Rajan says that India will have to do rethinking of the economy. “If there is an opportunity for India, it is in shaping that dialogue in more of a leader because it is not one of the two warring parties. It is, however, a big enough country to have its voice heard in the global economy.”
According to Raghuram Rajan, ” India has the opportunity to reshape the global dialogue towards one. In which it has a greater place in the multi polar global order. India can find opportunities for its industries and supply chains.”
India needs mass testing.
Ex-RBI chief and economist Raghuram Rajan while in conversation with Rahul Gandhi talks about reopening of the economy. He says that first of all India needs to do mass testing for Covid19 to reopen the economy. Rajan talks about where India stands with 1.3 billion population in comparison to other countries in terms of testing.
“In the US, it’s ramped up to at least 150,000 tests per day. And the consensus among experts is that to really be confident about reopening the economy is to triple the test. To do 500,000 tests per day at least and some are and multiply by 4 in India with a population of billion,” says Rajan.
According to Raghuram Rajan, India needs to do at least 2 million tests per day. Then only it will be possible for India to think about reopening the economy in the country. He also adds that India needs to be ‘clever’ about reopening as we can not be in lockdown forever.
“And you are talking about 2 million tests per day in India if you want to get the level of confidence like the US. Clearly, we are nowhere near that. We are around 25,000 tests per day now. But, we have to be clever to reopen and we have to do mass testing in order to be confident about reopening the economy.”
We do not need a 100% success rate so that after reopening the economy there are zero cases. That is something no one can control, we just have to manage the relaxation of lockdown restrictions efficiently.