Lockdown will help health system be better prepared, but there’ll be many jobless & destitute. The Rs 1.7 lakh crore package announced Thursday is a start.
Preventing the spread of the coronavirus before it infects more people is critical. If it doesn’t hit the working population badly, the economy will bounce back.
India does not have the healthcare infrastructure to cope with the spread of coronavirus, but it can do one thing to minimise the economic shock.
Yes Bank should’ve been overseen by a Resolution Authority, depositors shouldn’t have had to face moratorium. Now SBI or LIC shouldn’t be forced to buy it.
India spends lakhs of crores to produce wheat and rice, which then doesn’t get sold. It’s because the food policy has remained pro-cereal since the 1960s.
If done right, IPO can bring transparency & efficiency to LIC, ensure govt doesn’t force it to buy weak PSUs, and improve resource allocation in the economy.
Bringing back the Financial Resolution and Deposit Insurance Bill could be a very important reform in laying the foundations of a stronger financial system.
RBI’s regulatory measures to allow banks to lend more to some sectors may help revive credit for a quarter or so, but they don’t address fundamental issues.
Finance Minister Nirmala Sitharaman can do more on policy and legislative changes that are not related to tax, revenue and expenditure.
While the time to do fiscal expansion is when the economy is slowing, there is little point in having a discussion around numbers that people do not believe.