India needs to spend around Rs 650 bn to help the poor and the vulnerable amid COVID-19 crisis: Raghuram Rajan

India needs to spend around Rs 650 bn to help the poor and the vulnerable amid COVID-19 crisis: Raghuram Rajan

Former Reserve Bank of India governor Raghuram Rajan on Thursday said India needs to spend around 650 bln rupees to help the poor and the vulnerable during the COVID-19 crisis.

AgenciesUpdated: Thursday, April 30, 2020, 11:17 AM IST
article-image
Former RBI Governer Raghuram Rajan |

"Our GDP is 200 lakh crores (200 trln rupees), and out of that 65,000 crore (650 bln rupees) is not a huge amount. So, we can do it. If this is for the poor and to save their lives and livelihood, we must do it," Rajan said during a conversation with Congress leader Rahul Gandhi. To mitigate the economic hardships of the poor amid the nationwide lockdown, the government had detailed a 1.7-trln rupee package, which primarily focuses on cash transfers and food grains for the poor and the vulnerable sections of the society.

"We need to find ways of getting both money as well as food through PDS (Public Distribution System) to as many of these people as we can," Rajan said. Speaking on the number of job losses in India due to the pandemic and the subsequent lockdown, Rajan said that the numbers are "mind-boggling".

"I think it says, we need to open up in a measured way but as fast as possible so that people start having jobs. We don’t have the capacity to support people across the spectrum for too long," he said. According to the Centre for Monitoring Indian Economy, India's unemployment rate stood at 21.05% for the week ended Sunday. In the preceding week, the unemployment rate was at 26.19%.

RECENT STORIES

Thousands To Lose Jobs: Microsoft Hits Workforce With Another Massive Layoff In Just Months

Thousands To Lose Jobs: Microsoft Hits Workforce With Another Massive Layoff In Just Months

Starlink Free To Roll Out India Services Once In-SPACe Approvals Are Done: Union Minister...

Starlink Free To Roll Out India Services Once In-SPACe Approvals Are Done: Union Minister...

Gold Extends Gain For 2nd Straight Day, Climbs ₹500 Per 10 Grams; Silver Trades Flat

Gold Extends Gain For 2nd Straight Day, Climbs ₹500 Per 10 Grams; Silver Trades Flat

Apple Faces Trouble In India, Chinese Workers Leaving Foxconn Factory

Apple Faces Trouble In India, Chinese Workers Leaving Foxconn Factory

Tata Steel Confident To Complete Green Steel Transition In Europe As Planned: Chairman N...

Tata Steel Confident To Complete Green Steel Transition In Europe As Planned: Chairman N...