What are the possible suggestions that could be given for the revival of the economy, especially for the most vulnerable?
India needs a large enough stimulus package to increase spending and revive demand to face the challenge posed by the COVID-19 pandemic.
Apart from putting money in people’s hands to revive demand, the government must issue temporary ration cards for providing foodgrains and also cancel debt of the poor.
By giving money in the hands of people, one can boost demand, which in turn would increase production and employment.
This would create a virtuous cycle for the economic revival.
Ration cards would provide food security to the hungry migrants and cancellation of debts would help them to start afresh.
India has not yet provided a large enough stimulus package which is only about 1% of GDP whereas the U.S. has gone for 10% of GDP.
