Not sure whether India will gain if businesses shift from China due to Covid-19: Abhijit Banerjee
KOLKATA: Nobel laureate Abhijit Banerjee has said that there is no certainty that India will gain from shifting of businesses from China in the wake of coronavirus pandemic.
Banerjee, who is also a member of Global Advisory Board formed by the West Bengal government to prepare a roadmap for COVID-19 response in the state, said, "What happens if China depreciates its currency. In that case, Chinese products will be cheaper and people will continue to buy their products".
Talking about the proportion of gross domestic product (GDP) planned to be spent by the Centre for a relief package, Banerjee said countries like the US, UK and Japan are spending a high share of their respective GDPs.
"India plans to spend less than one per cent of its GDP at Rs 1.70 lakh crore. We should spend much increased proportion of GDP," he said.
The Centre had announced a more than Rs 1.70-lakh crore package to alleviate the hardship of the poor hit by economic disruption due to coronavirus outbreak.
The Economics Nobel Prize winner said main problem is that people of the country do not have high purchasing power.
Money should be given in the hands of poor people in phases over a period of three to six months, the economist said, adding that if they do not spend that, there is no problem.
"The poor people now do not have the money and they hardly have any purchasing power. There is no demand as well. The government should give money in the hands of the common people because they run the economy, not the rich," he said.
Banerjee felt that it is the responsibility of the Centre to look after the migrant workers.
"We have not thought of their problems that they will face. They have no shelter and money in their pockets," he said.
There is a need to issue emergency ration cards to all for a period of three or six months, he said.
He said the central government has taken some steps to provide relief to the people, of which extending moratorium on loan repayment is one.
译文来源：三泰虎 http://www.santaihu.com/49874.html 译者：Jessica.Wu
Just now Our PM has accepted the economic package proposed by Nobel laureate Avijit Banerjee. 10% of our GDP which he has emphasized
Is he a noble prize winner , he seems to be very pessimistic
Also i have noted he is mouthpiece of tmc and congress
Do you mean that Nobel prize committee are illiterates and you are the only man with wisdom? Should every one praise Modi to get into your good book?
He is bookworm. His knowledge can't be used in reality. He was quiet all these years and suddenly started speaking after getting Nobel prize.
Actually people like you don't want the nation to grow. If you really think that the Central Government should take care of all migrants and they are not the responsibilities of the states then I really feel pity on you. Sitting far away from the country and speaking against it is very easy. Did you do anything good for your country? Think about that before commenting
Satish Mohan Bhatia
He has a reactionary & negative mind. Being Noble Prize winner does not mean that your basic instincts & inclination will change.
We had one economist PM just return from hospital and another economist is getting ready to go mental hospital.
Nobody has asked you. Nor does anyone trust you ethically. so just shut the bin.
He is not aware about Indian real economy that is Rural economy. He spoke regarding reduced purchasing, Purchasing power reduced those who had earlier also no money. Indian rural economy has no impact of Covid-19. Lets market to open then see the result.