India's economy has some bright spots, a number of very dark stains, says Raghuram Rajan

Known for his frank views, the economist and former RBI governor said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic

Press Trust of India January 23, 2022 15:07:55 IST
India's economy has some bright spots, a number of very dark stains, says Raghuram Rajan

Representational image. News18

New Delhi: The Indian economy has "some bright spots and a number of very dark stains" and the government should target its spending "carefully" so that there are no huge deficits, noted economist and former RBI Governor Raghuram Rajan said on Sunday.

Known for his frank views, Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic.

Generally, a K-shaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses and industries that have been significantly impacted by the pandemic.

"My greater worry about the economy is the scarring to the middle class, the small and medium sector, and our children's minds, all of which will come into play after an initial rebound due to pent up demand. One symptom of all this is weak consumption growth, especially for mass consumption goods," Rajan told.

Read all the Latest News, Trending NewsCricket News, Bollywood News,
India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.

Updated Date:

also read

With 1,569 new COVID-19 infections in last 24 hours, India sees less than 2,000 cases after 28 days
India

With 1,569 new COVID-19 infections in last 24 hours, India sees less than 2,000 cases after 28 days

The health ministry informed that the active cases stand at 0.04 per cent of the total coronavirus infections in the country

COVID-19 update: India reports 2,841 new cases, nine deaths in last 24 hours, active cases dip to 18,604
India

COVID-19 update: India reports 2,841 new cases, nine deaths in last 24 hours, active cases dip to 18,604

The fresh COVID-19 infections reported on Friday were marginally higher than 2,827 cases logged on Thursday. The daily positivity rate was recorded at 0.58 per cent, while the weekly positivity rate was 0.69 per cent

India logs 2,202 new COVID-19 cases in last 24 hours, down 11.45% from day ago; daily positivity rate up at 0.74%
India

India logs 2,202 new COVID-19 cases in last 24 hours, down 11.45% from day ago; daily positivity rate up at 0.74%

India now has 17,317 active cases of COVID-19, a decline of 375 cases in the active caseload in a span of 24 hours. The active cases now comprise of 0.04 per cent of the total infections