Three big economists of Indian origin, former RBI governor Raghuram Rajan, Nobel laureate Amartya Sen and Nobel laureate Abhijit Banerjee have written an article. In this, veteran economists have given some important suggestions to the government about the impact on the economy from the lockdown and helping the people.
Everything has been closed since March 24 due to the lockdown, causing major losses everyday. There are already concerns about the economy and jobs in India. Now, Corona crisis has deepened. Meanwhile, three big economists of Indian origin, former RBI governor Raghuram Rajan, Nobel laureate Amartya Sen and Nobel laureate Abhijit Banerjee have written an article. All three have written this article in the English newspaper ‘The Indian Express’.
These three economists say that there are concerns about the pace of the economy, income and jobs. They have given many suggestions through the article.
- Indian economy is under pressure, in the midst of this epidemic, the government will have to spend thoughtfully, but will not have to cut the help of those who are currently in desperate need of government help. Many sectors and large populations need immediate help.
- Lockdown has rendered lakhs of Indians jobless, due to which the livelihood of these people has become a great challenge. The delivery system should change now. The way lockdown breaking cases are coming, the Govt. should take rapid initiatives to cater to the immediate needs of the people who need these most.
- Food Corporation of India (FCI) says it has a stock of 70 million tonnes (March 2020). This is three times more than buffer stock. Therefore, the government should first deliver food grains to the poor.
- The government has become convinced that the crisis situation has arisen for the agricultural market. Therefore, the government should constantly take necessary steps to buy stocks from farmers. In this phase of National Emergency, spending the old stock is the most important step. The government should be working on it.
- These economists say that the government has announced to give 5 kg of food grains per person for the next 3 months.
- The government will have to think above the ration card and Jan Dhan account to distribute food grains and cash among the poor as large amount of the poor do not have these cards. They have given example of Jharkhand, where ration card is pending on a large scale. It would be better to issue temporary ration cards immediately, the eminent economists have opined.
- School is closed, but there should be a robust system in place to ensure uninterrupted education to the school-going children. There should also be a public canteen for migrant laborers and people living outside the home. These arrangements can be started immediately with the help of NGOs.
- The government should immediately transfer cash to the affected poor, whose livelihood is not likely to start even after the lockdown. The central government which is currently transferring cash is not enough. Along with the farmers, laborers should get cash benefits.
- Rabi crop is ready, which the government will have to take a decision on shopping. Also, farmers will need money and fertilizer for the next crop. Shopkeepers will have to see how to complete their stocks. Many people will have to see how they repay their old loan.
- The states should also prepare a plan to provide help to the poor immediately. As far as the industry is concerned, some industries desperately need help, now the government will have to think how to help the most affected industries.