Raghuram Rajan: If jobs are to be saved, the economy should open immediately, we cannot help the poor for a long time
The economy has suffered a major setback due to the lockdown aimed at avoiding the corona virus crisis. Meanwhile, former RBI Governor Raghuram Rajan has also advised the government that the lockdown needs to be opened with utmost care as soon as possible so that the jobs of the people remain.
He said that we do not have the power to help people beyond a limit for a long time. He said that the entire focus should be on how to create as many good quality jobs as possible. Along with this, talking to former Congress President Rahul Gandhi, he said that Rs 65,000 crore is needed to help the poor in the country.
Raghuram Rajan’s remarks came at a time when millions of laborers had to flee the country due to the lockdown. Millions of people have faced a livelihood crisis in the country. Industry leaders and experts have, meanwhile, demanded from the government that a package needs to be issued to handle the situation.
Before Rajan, Arvind Subramanian, the former Chief Economic Adviser of the country, also said that policymakers should decide a plan to deal with this economic decline. He had said that if the lockdown was continued for a long time, the economy would also have to pay the price.
Some relief from the relaxation in agricultural operations: Especially for a government promising to double the income of farmers and bring 20 percent of the country’s population out of the poverty line, it will be difficult to cope.
However, in the meantime, the government has approved the activities related to agriculture and agricultural products with some rules. The government has decided that the lockdown should not affect the harvesting of wheat and sowing of the next crop.
Service sector will be hit the most: According to economic experts, the least impact in this crisis will be on the agriculture sector, while the service sector will be hit badly. Apart from this, if the manufacturing sector is talked about, the production will increase after the lockdown opens, then this crisis will reduce and things will get back on track.