India among world’s worst performing economies: Abhijit

Abhijit Banerjee

New Delhi: Nobel Laureate Abhijit Banerjee has said said India is among the worst performing economies in the world and the government’s economic stimulus was inadequate to tackle the problem.

Speaking at a virtual event, Banerjee said the country’s economic growth was slowing down even before the Covid-19 pandemic hit.

He, however, said that the country will see a revival in growth in the July-September quarter of the current fiscal.

“Indian economy is among the worst performing in the world. The country’s economy will see revival in the current quarter (July-September),” he said and added that economic growth in 2021 is going to be better than this year.

Banerjee said he does not think that India’s economic stimuluswas adequate. “India’s economic stimulus was limited. It was a bank bailout. I think we could have done more,” he said.

The stimulus measures did not increase consumption spending of lower income people as thegovernment was not willing to put money in the hands of the low income population, he said.

On inflation, Banerjee said India’s growth strategy was closed economy with the government creating lots of demand, which resulted in high growth and inflation.

 

NT Bureau