New Delhi: A day after former Prime Minister Dr Manmohan Singh claimed that the road ahead is more daunting than the 1991 economic crisis in view of the COVID-19 impact on the Indian economy, experts opined that Dr Singh's statement is a political statement and that the two situations are not comparable.
Speaking on the matter, Dhirendra Kumar, Founder & CEO, Value Research, said, "The two situations are not comparable. I can think of many reasons why the 1991 situation was not only worse but actually only minimum possible was done. It was because we were cornered in a situation and IMF was wanting us to take some steps for the help we were seeking. Essentially, Dr Singh's statement is a political statement from a Congress politician which cannot be taken at the faith value." He further added, "The 1991 crisis was primarily the result of the disastrous socialist policy which India followed in the past 40 years. If we had good sense in the years before that we would have been far more prosperous than China today."
Expert on Dr. Singh's statement on reforms Read: Road ahead is more challenging than 1991 crisis, says Dr Manmohan Singh
In a statement marking the 30th anniversary of economic liberalisation, Dr Singh had stated, "It is not a time to rejoice and exult but to introspect and ponder. The road ahead is even more daunting than during the 1991 crisis. Our priorities as a nation need to be recalibrated to foremost ensure a healthy and dignified life for every single Indian."
Expressing concern over the devastation caused by the Covid-19 pandemic and the loss of millions of fellow Indians, Singh lamented, "the social sectors of health and education have lagged behind and not kept pace with our economic progress." To this, Dhirendra Kumar replied, "This is a general finger-wagging rhetorical statement that anyone can make at any point about any country in the world. It cannot be the basis of any meaningful comment or discussion."
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When asked about the steps that should be taken by the Government to overcome the effect of Covid-19 on the Indian economy, he said, "On the one hand, Spend more, it's safe on productive activity and on the other hand, let people's economic activity not be curtailed at all through blind panic over the disease. That is what happened in the first wave. Both Central and state governments need to understand that not curbing economic activities is as crucial as controlling the disease. The right balance is most essential."
