Economy

Fall in GDP alarming, economy will be seriously damaged: Raghuram Rajan

After India recorded a sharp economic recession in its GDP in early September, former Reserve Bank of India Governor Raghuram Rajan took to LinkedIn and termed the 23.9 percent fall as “alarming.”

With discretionary spending expected to stay low until the virus is contained, government-provided relief becomes all the more important, Rajan was quoted as having said by The Hindu, adding that the government’s reluctance to do more today to conserve resources for a possible future stimulus is a “self-defeating” strategy.

Rajan said that the 23.9% contraction in India, will probably be worse when estimates of the damage in the informal sector come out, compared with a drop of 12.4% in Italy and 9.5% in the United States — two of the most COVID affected advanced countries.

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