Former RBI Governor Raghuram Rajan’s advice to Finance Minister Nirmala Sitharaman as she prepares to present her third budget this year amid the pandemic that has plunged Asia’s No.3 economy into recession, focus on the essentials.
While most economists have been pleasantly surprised by the resilience of the Indian economy as evidenced by the less than feared 7.5% contraction in the second quarter, Rajan, in an interview with ET Now, believes it is too much. early to breathe a sigh of relief. “Looking at the Sensex, you think the problems are over. No, they’re just getting started.
Excerpts from what the University of Chicago professor had to say about what’s going on in India’s mind:
Don’t expect things to be sorted out until 2022 For the United States, people are saying that in the second quarter of this year, we’ll be back; for India, I guess we probably won’t be back until the end of 2022, where we might have been before the pandemic, and then to regain the ground that we lost because we were …
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