Rahul actually shows the way! #SpeaksForIndia

-Anjali Ankad 

 

The former RBI Governor Raghuram Rajan said on Thursday the second or third round of lockdown will be devastating for the Indian economy while discussing the state of the Indian economy and how India should be taken quick measures in the midst and post the coronavirus crisis. The economic conditions of India are getting worse day by day with every common man struggling to meet the basic needs and the rate of unemployment dipping amid the lockdown which, in turn, will hurt the Indian economy. What Rajan said about India should start thinking about restarting the people's livelihoods was correct as it would be unsustainable for the economy.

 

Of course, the health of the civilians needs to be taken care of but the government can start opening the areas with having relatively few cases. While implementing this, the government can screen and make sure that everything is contained which can prevent the new number of cases in that particular area. Rajan even said about how going another lockdown will impact the economy hugely. "India needs to be cleverer about reopening the economy," Rajan noted.

 

 

 

If the country faces a surge of cases after the government lifts the restrictions then questions will arise on how successful the lockdown was, he said, which might push the country into another lockdown. This would then diminish the credibility and confidence of the government. It seems that the lockdown is the only option left in the hands of the government to contain the virus, however, if it happens then God knows what will be the fate of the Indian economy in the future and how low will the growth rate will go?

 

Even Rahul Gandhi lashed about the way India is treating its poor people, migrants vs the way the elite is being treated, two completely different ideas. Rather than controlling the disease, it needs to be managed which will help to contain the virus which will not lead India to face another lockdown. The question about the class of society again pops up. The government is providing essential goods, services to the poor, and the rich do not have anything to worry about in terms of finance but what about the middle class and lower middle-class people?

Unemployment was already a major issue but this crisis has created havoc putting the middle class and lower class into danger. He further said about the same, "The numbers are really worrying. If you look at CMIE, virtually another 100 milllion MORE people have been put out of work as a result of COVID. 50 million through unemployment and 60 million through leaving the labour force. You can dispute what the particular survey does or says, but this is the only data we have. And the numbers are mind boggling.

 

"I think it says, we need to open up in a measured way but as fast as possible so that people start having jobs. We don’t have the capacity to support people across the spectrum for too long. Being a relatively poor country, people start out with significantly lower reserves. The greater challenge to me lies in the range between the lower middle class and the middle class, which is where we need, in a huge way, jobs, good quality jobs, so that people aren't dependent on a Sarkari job and the comforts that come with it."

 

It has now become necessary to focus and to do more work on the plight of the middle class and lower middle class as this is the sector where there has to be a tremendous expansion in the economy. We have witnessed for so many years that there has been a decline in the rate of economic growth with several young people entering into the labor force in this digital world. Rajan even further said, "So, I would say let us not pick amongst possibilities, but create the opportunity for any kind of area to flourish. If there are mistakes we made in the past, we said this is the only way to go; and think of one of the most successful areas we've grown in." The areas of software and outsourcing services that worked in the favor of India and is the strength needs to be flourished.

 

The Finance Minister Nirmala Sitharaman who has time to tweet and counter the Congress leader Rahul Gandhi on his allegations on "wilful defaulters, bad loans and write-offs" should handle the economic conditions more seriously after there has been an economic slowdown, decrease in GDP and now this coronavirus crisis.