Economic revival depends on containing Covid: Avanidhar Subrahmanyam

India’s economic recovery depends on how the country tackles Covid-19 infections in the coming months as the global pandemic is the only reason that has suppressed a vibrant and dynamic economy like India, said Avanidhar Subrahmanyam, a professor at University of California Los Angeles (UCLA).

New Delhi:India’s economic recovery depends on how the country tackles Covid-19 infections in the coming months as the global pandemic is the only reason that has suppressed a vibrant and dynamic economy like India, said Avanidhar Subrahmanyam, a professor at University of California Los Angeles (UCLA).

“Basically, everything is to do with the infection rate. As far as I can see, the only reason a vigorous and dynamic economy like India is suppressed is because of infections,” Professor Subrahmanyam told ETV Bharat in response to a question.

The highly contagious SARS-CoV-2 virus has killed over 1,15,000 in the country and over 1.1 million people worldwide after it was first discovered in Wuhan region of China late last year.

The virus has decimated the country’s economy, which contracted by nearly one fourth, during the first quarter (April-June period) of this fiscal, the biggest such contraction in over 40 years. The Reserve Bank of India has pegged overall annual contraction in the country’s economy at around 10 per cent this year.

Speaking at a conference organised by Noida based policy think tank, EGROW Foundation, Professor Subrahmanyam said nothing will happen unless the Pandemic is contained.

“The main reason here is the infection rate, that is the highest infection rate in the world at the moment. Unless it comes down, nothing will happen,” the economist told ETV Bharat.

Professor Subrahmanyam emphasised on following the social distancing norms to contain the infection rate.

The economist said if Indians wear masks and avoid going to movie theatres and malls for next few months then everything will be under control but if they insist on having the same lifestyle and take risks as the young generation feels that it can take risks then it will not help.

“As the infection rate rises then the government will not actually be compelled to remove the restrictions. Policymakers won’t be willing to take chances,” said the Professor.

PM Modi warns of second Covid wave

On Tuesday, Prime Minister Narendra Modi also warned the public about the dangers of a possible second Covid wave during the winters.

In his seventh televised address since March this year when India announced its first three-week long complete nationwide lockdown, Prime Minister Modi urged the people to strictly follow the social distancing norms till the time a vaccine or antidote for the virus is available.

"Though the lockdown is lifted but the virus is still out there," said the Prime Minister.

(Article by Krishnanand Tripathi)