India is currently observing a complete shut down of activities, including trade and business, except healthcare functions, essential services, and governmental activities. The massive shut down of the nationwide business activities is estimated to cause an enormous deficit to the Indian economy.
In this time of crisis, the former Governor of the Reserve Bank of India (RBI), Raghuram Rajan, has readily offered to help India if his assistance is needed to overcome the economic crisis after the global pandemic relating to COVID-19 ends.
In a question raised by NDTV on his willingness to help India post the coronavirus pandemic, the former RBI Governor said: “The answer is a straightforward yes.” Raghuram Rajan also spoke about the threat to economic activities post the pandemic. “If the virus spreads, as it has spread in Italy and the United States, we have to take it very seriously. What you see in these countries is a tremendous effect on public health, the overburdening of many hospitals and many deaths, and of course, when that is happening, economic activity is hard to carry on,” Rajansaid.
Raghuram Rajan stated that the world is most certainly face a deep recession following the COVID-19 crisis. While talking about the economic condition in India, Rajan said, “The first sign of difficulties in India is often seen in foreign exchange. So far compared to other emerging markets, our exchange rate has stayed quite stable, presumably from some support of the Reserve Bank of India. I should say we have depreciated some against the dollar, but you know countries like Brazil have gone down 25 percent. We haven’t been in that situation.”Rajan also said he is hopeful of finding a rebound next year for the economic condition and also added that all the countries should take preventive measures to tackle any recurrence of such pandemic.
Raghuram Rajan served as the 23rd Governor of the Reserve Bank of India. He is currently serving as a Distinguished Professor of Finance at the University of Chicago. Though Rajan is a severe critic of Modi’s demonetisation, he has now offered to help India overcome the economic crisis.