Abhijit Banerjee: India may dip in 3rd wave!
The approaching third wave of the coronavirus epidemic, according to Nobel laureate and prominent economist Abhijit Banerjee, is likely to have a negative impact on India's GDP. According to Banerjee, India's growth rate might fall to 7%, which is lower than the IMF's previous forecast of 9.5%. The Nobel laureate, who chairs West Bengal's Global Advisory Board (GAB), stated that improving a state's economy is inextricably linked to the country's economic recovery.
As a severe second wave skewed economic recovery, the IMF lowered its economic growth estimate for india to 9.5% for the fiscal year ending march 31, 2022. “Due to the COVID-19 issue, the economy is slowing down. The IMF had previously forecasted GDP growth of 12.5%. It is now estimated to be 9.5%. It may drop to 7%, in my opinion. Another wave will lower it even more. “The state would not be able to move forward on its own unless the country's economy improves,” Banerjee remarked. Bengalis also work in other states, he said, and migrants account for a large portion of the state's revenue.
Rather than worrying about deficit balance and budgeting, the economist urged the central government to invest more in free-spending programmes similar to those in the united states and Europe. Banerjee praised the Centre for finally taking that step, but added that there is a strong case for being more generous. He also chastised the Centre for raising cess on a variety of products, including petrol.
As a severe second wave skewed economic recovery, the IMF lowered its economic growth estimate for india to 9.5% for the fiscal year ending march 31, 2022. “Due to the COVID-19 issue, the economy is slowing down. The IMF had previously forecasted GDP growth of 12.5%. It is now estimated to be 9.5%. It may drop to 7%, in my opinion. Another wave will lower it even more. “The state would not be able to move forward on its own unless the country's economy improves,” Banerjee remarked. Bengalis also work in other states, he said, and migrants account for a large portion of the state's revenue.
Rather than worrying about deficit balance and budgeting, the economist urged the central government to invest more in free-spending programmes similar to those in the united states and Europe. Banerjee praised the Centre for finally taking that step, but added that there is a strong case for being more generous. He also chastised the Centre for raising cess on a variety of products, including petrol.