PROGRESSIVE RATIONALIST

The International Monetary Fund (IMF) on Wednesday lowered its growth forecast for the Indian economy in 2020 by 4.5 per cent , a "historic low" , citing economic slowdown due to the two-month-long COVID-19-induced lockdown. The fund, however, also said that India is expected to bounce back in 2021 with a 6 per cent growth rate. In 2019, India's growth rate was 4.2 per cent.  The CoVID'19 lead economic crisis is different from other economic crisis in history and needs a different strategy. To revive the economy and boost growth govt should attract global investments and also increase liquidity and monetize the poor so much. Govt is highly ensuring the supply side hitch through credit guarantee schemes but only if the consumer has money in their hands these businesses would perform.  Govt should not worry about the fiscal deficit and inflation for about 6 months. Only through more public spending, money would reach the poor - Garib Kalyan Rojgar is a good example. An...

The world is juggling between economic slowdown and containing the spread of COVID-19, so as India. The previous 21 days lockdown has been extended for 18 more days with a hint of relaxation after April 20th. Does this lockdown help India in containing the virus spread but what would be the aftermath? What would be the situation of the Indian economy? I came across a couple of editorials discussing that the pandemic situation which can be used as a chance to reform the country’s economic policies. And also the authors of those editorials analysed that India would make reformative measures to the economy only when the country faces some crisis (like 1991 economic reform). So this is the time for our policymakers to reform our economic policy and ensure our country overcome the economic slowdown. Inflation and Growth The NDA government is very keen on controlling the inflation within the 4% target by 2021. But as far as the growth is concerned in a developing country  inflation contr...