Nobel Laureate Abhijit Banerjee on Tuesday stated India is among the many worst performing economies on this planet and the federal government’s financial stimulus was insufficient to deal with the issue.
He, nevertheless, stated that the nation will see a revival in progress within the July-September quarter of the present fiscal.
Talking at a digital occasion, Banerjee stated the nation’s financial progress was slowing down even earlier than the Covid-19 pandemic hit.
“Indian financial system is among the many worst performing on this planet. The nation’s financial system will see revival within the present quarter (July-September),” he stated, including that financial progress in 2021 goes to be higher than this yr.
Banerjee, at present a professor at Massachusetts Institute of Know-how (MIT), stated he doesn’t suppose that India’s financial stimulus was sufficient.
“India’s financial stimulus was restricted. It was a financial institution bailout. I feel we might have finished extra,” he stated.
The stimulus measures “didn’t improve consumption spending of decrease earnings individuals because the authorities was not keen to place cash within the arms of the low earnings inhabitants,” he famous.
Speaking about inflation, Banerjee stated India’s progress technique was closed financial system with the federal government creating a lot of demand, which resulted in excessive progress and inflation.
“India had 20 years of excessive inflation and excessive progress. The nation benefited loads from steady excessive inflation within the final 20 years,” he opined.
The eminent economist famous that India must be globally extra aggressive.