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Covid-19: India crisis reveals complacency and lack of foresight, Raghuram Rajan Says | India News


New Delhi: According to Raghuram Rajan, former governor of the country’s central bank, India’s coronavirus infection has been on the rise since the first wave last year, with “a lack of foresight, a lack of leadership”.
“If you were careful, you had to recognize that it hadn’t happened yet,” Rajan told Bloomberg Television in an interview with Kathleen Hayes on Tuesday. “In Brazil, for example, anyone who pays attention to what is happening in the rest of the world comes back with the virus and should be recognized in potentially more viral forms.”
India is suffering from the world’s deadliest epidemic of covid-1 cases, with more than 350,000 deaths reported daily on Sundays. Prime Minister Narendra Modi is being pressured to impose a strict lockdown to stop its spread, which his government has avoided following the economic catastrophe with a similar strategy last year.
After a drop in cases last year, “there was a feeling that we had endured the virus as badly as we could and we came and now it’s time to open up, and this compliance has hurt us,” Rajan said. He is the Chief Economist of the Monetary Fund and now Professor of Finance at the University of Chicago.
Probably India’s relative success against the first wave of infection. It is likely that it will not quickly prepare enough vaccines for its own population, he said. “It simply came to our notice then. We can roll out vaccinations slowly as we have taken action against the virus, ”he added, adding that the government is now coming“ together with its act ”and is in“ emergency mode ”.
Rajan, who was appointed by the previous government to lead the Reserve Bank of India, became a vocal critic of the Modi government’s administration after taking office during Modi’s administration, citing growing intolerance in the country as well as differences over RBI dividend and interest rates. . Hindu nationalists, who formed the backbone of Modi’s support, questioned his allegiance to India and accused him of keeping interest rates too high.
The RBI has been “as flexible as possible” to support the economy in the face of stagnant inflationary pressures. The RBI’s “fairly large” foreign exchange reserves could offer “a step of comfort for foreign investors” as suspicions grow over the performance of the Indian economy.
U.S. In, a massive monetary stimulus program and economic recovery could force the Federal Reserve to “reconsider” its policies to stay on hold for the foreseeable future and wait for inflation to rise steadily beyond its 2% target.
In that event, “a financial market that thinks the Fed won’t act in the near future is likely to be somewhat surprised at the first signs.”
While helping the RBI, Rajan in particular criticized the large-scale simplification programs by the Fed, and warned that the lack of international coordination amid potential tightening would lead to market volatility, similar to the ‘taper mechanism’ in 2013.
At the moment, he said Tuesday, “it looks like the Fed has somewhat overtaken by events.”

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