Reversing the economic reversal -Pulapre Balakrishnan

Share this article Share this article
published Published on Sep 7, 2020   modified Modified on Sep 11, 2020

-Hindustan Times

Don’t bank on V-shaped recovery. The Centre must discard dogmas, enhance investment

News of a contraction of almost 24% of the gross domestic product (GDP) in the first quarter of this year would have come as a shock to every responsible citizen. The degree of contraction exceeds that in any major world economy. This is not surprising as India combined the world’s most stringent lockdown with the weakest economic stimulus.

For perspective, the actual fiscal impulse has amounted to less than 2% of (2019) GDP while it has been close to 10% in the United States (US). The difference finds its reflection in the relative rates of contraction, with GDP in the US contracting by 9% in the April-June quarter compared to two-and-a-half times that in India. There is no doubt that we are observing something that will have a deep and lasting impact on the economy unless the government responds to this news with decisive and quick action. Above all, a functional economic policy is what is needed now, rather than one that is attractive to the government for reasons either ideological or aesthetic.

Please click here to read more.


Hindustan Times, 7 September, 2020, https://www.hindustantimes.com/analysis/reversing-the-economic-reversal/story-QkFtUhttB9pVWUzprycfiN.html?fbclid=IwAR0EnTfkwW1j7Uw4pIw_UocPAEjyfTD9RbCGt2ZONUpz3gkySLF0HmvzPdk


Related Articles

 

Write Comments

Your email address will not be published. Required fields are marked *

*

Video Archives

Archives

share on Facebook
Twitter
RSS
Feedback
Read Later

Contact Form

Please enter security code
      Close