National Affairs

India’s GDP Data ‘Alarming’: Raghuram Rajan

India’s economy is far worse than two of the most Covid-affected advanced countries — the US and Italy. Adding this former Reserve Bank of India Governor Raghuram Rajan on Monday said the India’s GDP data for the first quarter of financial year 2020-21 “should alarm us all” and the government and bureaucrats need to be frightened out of their complacency and into meaningful activity. “India is even worse off than these comparisons suggest. The pandemic is still raging in India. So, discretionary spending, especially on high-contact services like restaurants, and the associated employment, will stay low until the virus is contained.”Said Rajan. He also said “economic stimulu was like a tonic, but if the patient has atrophied, stimulus will have little effect. No doubt, GoI and its bureaucrats are working hard as always. But they need to be frightened out of their complacency and into meaningful activity. If there is a silver lining in the awful GDP numbers, hopefully it is that.”

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