Rahul Gandhi and Nobel Laureate Prof. Abhijit Banerjee say India needs a bigger stimulus package.

Rahul Gandhi once again in the picture this time debating with Abhijit Banerjee. Nobel Laureate Abhijit Banerjee is the latest to interact in a series of video conversations by Rahul Gandhi with experts on health and economy.

Banerjee stated that to support the economy, the government must plan a bigger stimulus package and take a leaf out of the USA.

He added to this India should really inject more money in people’s hand so as to reinvigorate demand in the market. Abhijit also explained how India should decide on a larger stimulus package like USA, which has declared a package of 10% of its GDP.

Banerjee says, “We really haven’t decided on a large enough stimulus package. We are still talking about 1% of GDP. The United States has gone for 10% of GDP”.

On talking about the economical steps taken by the government, he said, “We have done one thing that I think is wise, which is to kind of put a moratorium on debt payments.

We could do more than that. We could even say that the debt payments for this quarter will be cancelled and will be taken care of by the government”.

The noted economist also urged the government to aim beyond the poorest, “I would say bottom 60% of the population, we give them some money, nothing wrong will happen in my view.

If we gave them money, well some of them might not need it. Fine they’ll spend it. If they pay it, it would have a stimulus effect,” he explained.

Professor Banerjee has also raised two major concerns after the end of this pandemic, first is how to steer clear of the chain of bankruptcy, and writing off a lot of debts may be the answer to it.

On the second concern, he says, “The second is demand in shortfall and getting some cash into hands of people is the best way to kick start the economy.”

Rahul Gandhi has started conversations with noted experts and last week had an interaction with former Reserve Bank Of India Governor Raghuram Rajan discussing the impact of COVID 19 pandemic & lockdown on the economy.