India will have to spend another Rs 10 lakh crore for Korona, where will Modi get it from?

Prime Minister Narendra Modi on Monday held talks with chief ministers through video conferencing to deal with the Corona crisis. In this meeting, the situation and the economy due to the corona virus was discussed. On this, PM Modi said that do not take tension about the economy, our economy is good. But Arvind Subramanian, the country’s former chief economic advisor and lecturer at Harvard Kennedy School, has something else to say. Subramanian has warned India of the impending economic crisis.

Subramanian said that the country’s economy is not in good condition and this year will see a lot of negative growth for which India should be prepared. Subramanian described the corona crisis as a holocaust and said that keeping this in mind, India should also be prepared to spend an additional Rs 10 lakh crore. Which is 5 percent of Indian GDP.

Subramanian said that the COVID-19 epidemic came at a time when the economy was already struggling. Estimating the IMF’s growth rate for this year to be 1.9 percent, he said “India was already weakening, lockdown policies in India are no less severe than in advanced countries.” India’s fiscal response is less than 1 percent of GDP. In the advanced countries, there is a response of more than 8.5 percent of GDP. I cannot believe how we can accept the fact that India is a more dynamic economy. How India’s growth rate cannot be less than the orders of magnitude that the IMF is offering for advanced countries. I think the IMF’s forecasts for India are absolutely mysterious and bizarre… we should plan a negative, perhaps quite negative, growth rate this financial year.

The “World Economic Outlook” report released in April by the International Monetary Fund (IMAF) estimated India’s economic growth rate to be 1.9 percent this year. Not only this, the report said that India will recover by 7.4 percent in the year 2021-22.