Coronavirus cases don’t see any fullstop in the near future. Cases are continuously increasing. The total coronavirus cases in world has reached 2.95m. The death toll has reached 205k and 861k people have recovered till now.
In India as well the cases are on a spree. Total cases in India has reached 26,917. 5,914 have recovered and 826 people have died.
Coronavirus has created havoc in the entire world. People are shut in their homes, poor struggling to make their two ends meet, hospitals flourishing will ill patients and economy facing the worst economic downturn. There is an air of uncertainty in the whole world. Nobody knows what’s next.
The lockdown is implemented in the country to control the spread. In this background RBI Governor has said that if the lockdown continues in a poor country like India, millions of people will be devastated.
Prolonging lockdown – disaster for India
Former Reserve Bank of India (RBI) Governor D. Subbarao said on Sunday that prolonging the lockdown would be a disaster for India and millions of people will be adversely affected.
However, he hoped that the economy would be back on track after the end of the corona virus epidemic, saying that the pace of return of India will be faster than other economy. He was speaking at a webinar organized by the Manthan Foundation on the post-corona virus situation. Former Deputy Governor of RBI Usha Thorat also participated in it.
Growth rate zero
Subbarao said on the occasion, “Since most analysts believe that the Indian economy will actually decline this year or growth will decline significantly, we must remember that even two months before this crisis, our growth rate was low. Now the growth rate has come to a complete standstill”. Rao said that the growth rate is estimated to be 5 percent last year.
He expressed surprise on the occasion and said, “just think, 5 per cent was the growth last year and this year we are going towards a direct fall or zero growth,that is a five per cent drop”.
He said, “It is true that India is going to do better than other countries in this crisis, but it is not a matter of satisfaction, because we are a very poor country.” If the crisis persists and the lockdown is not lifted soon, it is very likely that millions of people will be marginalized and a crisis of survival will arise in front of them.
Asked for views on the current situation, the former RBI governor said that as predicted by analysts, India will have a “faster return which is better than most other countries.”
He said, “And why do we expect a V-shaped comeback? Because like a cyclone or earthquake it is not a natural disaster. Capital is not wasted in this. Factories are in place. Our shops are still standing. Our people are ready to work as soon as the lockdown is removed. So it is quite possible that there will be a V-shaped comeback and in such a situation I think India has a better chance than most countries”
What is v shaped comeback?
India write now has a v-shaped recession which means that the economy is suffering a strong but brief decline in economy. Since all economies, shops, people are intact, India will make a comeback and revive itself.