India needs to move out of coronavirus lockdown in a measured way: Raghuram Rajan

Noted economist and former governor of Reserve Bank of India (RBI) Raghuram Rajan has said that India needs to move out of the coronavirus-enforced lockdown in a measured way but should be as fast as possible. He added India cannot continue to provide for the poor for a very long time.

In a conversation with former Congress president Rahul Gandhi, Rajan also said that India would need to set aside Rs 65,000 crore to immediately provide for the poor in the country.

"India cannot also afford cyclical lockdown as it would devastate the economy and diminish the credibility of the state," he said.

Add WION as a Preferred Source

Rajan stressed on increasing the number of tests in India, citing, "The US is testing 1,50,000 people a day and many virologists says that for US top escape the current situation it needs to do 5,00,000 tests."

Rahul Gandhi agreed. But, on the other hand, felt that the pandemic has become an excuse for the state to centralise power and the concept of Panchayati Raj has eroded.

This statement has come in the aftermath of Prime Minister Narendra Modi though having a long conversation with all Panchayati Raj heads earlier this week.

Raghuram Rajan was also of the view that public distribution system is key to riding over the crisis and temporary ration cards will need to be issued.

"We are not like China and the United States but big enough to start a conversation about environment and sustainable development," Rajan further said.

Rahul Gandhi also broached the issue of social distrust in the Indian system. To this end, Rajan said that the state must promote the view that everyone has a stake in decision making for the overall harmony.

The two agreed on rise of authoritarian politics world over and a need to de-centralise decision making at local level.

"India needs to lessen the divide between lower middle class and middle class and it is here the economy needs to expand the most," he signed off.