Huge fall in Indian GDP: The way the country’s GDP is falling in the first quarter of the current financial year has not happened in the last 25 years. Modi has announced a financial package of Rs 20 lakh crore to address the crisis in Corona.
Even though the amount of the package is huge, but it will not be of much use, said Raghuram Rajan, former governor of the Reserve Bank.
In the last three months, the country’s GDP growth rate has slowed to 23.9 percent. At this time the whole country was in lockdown. So after the lockdown, some quarters think that the GDP will not collapse like this.
But according to Raghuram Rajan, the unconventional field losses weren’t counted in it. If you count it, the image will be more horrible. In such a situation, planners should spend money wisely.
Centre rudderless & clueless. Why did India’s GDP shrink the most in the world? GoI spent ONLY 1 lakh crores more in April-July 2020, compared to 2019-20, while headlines scream 20 lakh crore stimulus!Negligible additional stimulus meant 11 lakh cr of GDP lost forever. 24% shrink
— Dr Amit Mitra (@DrAmitMitra) September 7, 2020
Rajan writes in a LinkedIn article that the way India’s economic growth has fallen, that is extremely worrying. The non-performing sector was not included in the fall of 23.9 percent of GDP. In countries like Italy and the United States, the GDP fell to 12.4 percent and 9.5 percent, respectively.
As a result, there is a need to think. It is not enough that the government has started giving rations to the common man or trying to stand with the small and medium industries. West Bengal Finance Minister Amit Mitra stabbed the central government with this.
It cannot be said that the economic growth of the country was good before the Corona pandemic. The corona lockdown has made that miserable situation worse. According to Rajan, people are spending less now. Corona is not leaving the country right now. As a result, this tragic phase of GDP will not move easily.
Rajan further wrote that if the government cannot bring the people of the country out of this situation, people will have to eat less, children will have to drop out of school, Gold must be mortgaged, EMI will be left. that would be a horrible situation.
Compared to India, the world will turn around faster from economic damage. At that time, export opportunities will open up in front of India. Then this opportunity must be used.