'India Needs A Larger Stimulus Package,' Abhijit Banerjee To Rahul Gandhi On Coronavirus Pandemic | 10 Points

Congress leader Rahul Gandhi talks to Nobel laureate Abhijit Banerjee about Covid-19 pandemic and its impact on the Indian economy.

Image:ANI

New Delhi: Congress leader Rahul Gandhi held a video conversation with nobel laureate, Abhijit Banerjee today to discuss the pandemic and its impact on the economy. Gandhi’s conversation with Banerjee comes after a previous one with former RBI governor Raghuram Rajan which was held on April 30^th. Rajan had talked about financial requirements needed for fighting the coronavirus in India and had estimated that around Rs 65,000 crore will be needed to help the poor who have been affected by the nationwide lockdown. Banerjee gave insights on the possible ways of reviving demand in the market while being vigilant about the trajectory of the virus. Here are ten key highlights from the conversation

• India needs a stimulus package; there isn't dedicated large enough financial package yet
• It is important to revive demand, nothing bad will happen if we give bottom 60 percent with more money
• Give temporary ration cards to everybody; use those for transferring money, wheat, and rice to them
• Aadhaar-based claims for PDS would have saved a lot of misery for the poor, a lot of the poor are still not in the system
• We should try to be optimistic about overall economic revival in India post-lockdown
• According to Rahul Gandhi, states should be given options and be allowed to decide themselves on lockdown
• We should take a cue from the US by pumping in more money in the hands of people to revive demand
• We need to be aware of the disease's path before taking the decision on lifting the lockdown
• Not clear targeting the MSME sector is right channel; it is more about reviving demand, giving money in hands of everybody
• Spending is the easiest way to revive the economy; spending will have a stimulus effect