Prolonged lockdown may push millions into margins of subsistence: Ex RBI Governor Subbarao
Hyderabad: A prolonged lockdown may possibly push million of Indians into the "margins of subsistence", former RBI Governor Duvvuri Subbarao said on Sunday while expecting a 'V' curved recovery once the COVID-19 crisis ends and the turnaround in India to be faster than some economies.
He was participating in a webinar on "History repeats - but differently- Lessons for the post Corona World," organised by the Manthan Foundation here, in which former Deputy Governor of RBI Usha Thorat took part.
"Because most analysts believe that this year India will actually have negative growth or growth will contract. We must remember that even ahead of the crisis two months ago our growth slowed. Now it has completely stopped.
Last year growth was five per cent. Just imagine, five per cent growth last year and we are going to negative or zero growth this year, a decline of five per cent growth," he said.
"It is true that India is going to perform in this crisis better than most other countries.
But that is no consolation....
Because we are a very poor country and if the crisis persists and if the lockdown is not lifted soon enough, it is quite possible that millions of people will be pushed into the margins of subsistence, he said when asked about his views on the present situation.
Subbarao said that as predicted by analysts, India will have a V shaped recovery which is far better than most of the other countries.
"And why do we expect a "V" shaped recovery? Because unlike in a cyclone or in an earthquake, this is not a natural disaster constraint.
No capital has been destroyed. Factories are standing. Our shops are still standing. Our people are ready to work as soon as the lockdown is lifted.
So it is quite possible the recovery will be V shaped and while we have a V shaped recovery, I think India has a better chance then most of the countries," he opined.
According to him, India's recovery was faster than many other countries after the 2008 global financial crisis.
On IMFs prediction that India may grow at 1.9 per cent during the current year against about five per cent in the last fiscal, Subbarao said many analysts feel that the prediction is outdated and the growth in GDP may slip into negative.
He said the "life versus livelihood" dilemma for the country is arguably very "short while" for India.
Usha Thorat said pumping more liquidity into the system alone cannot work and banks and Non-Banking Finance Companies (NBFC) will need credit guarantee or enhancement to start lending.
She also said that states need more support during the crisis and streamlining of non-merit subsidies was required.
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Assam: 20 illegal immigrants pushed back to Bangladesh
Guwahati (PTI): Assam Chief Minister Himanta Biswa Sarma on Sunday said 20 foreign nationals were apprehended in the state and pushed back to Bangladesh.
"Rude people don't understand soft language... We continuously remind ourselves of this prophetic line when we expel infiltrators from Assam who don't leave themselves. For instance, these 20 illegal Bangladeshis who were PUSHED BACK last night," Sarma said in a post on X.
He, however, did not share details pertaining to the location where they were nabbed or their nationality.
"Assam will fight, Pushbacks WILL CONTINUE," Sarma asserted.
Sribhumi, Cachar, Dhubri and South Salmara-Mankachar districts in Assam share 267.5 km of the international border with Bangladesh.
There is an Integrated Check Post (ICP) at Sutarkandi in Sribhumi. The northeast has a total of three ICPs along the India-Bangladesh border, the other two being at Dawki in Meghalaya and Akhaura in Tripura.
Another ICP in the region is at Darranga in Assam along the India-Bhutan border.
The Assam Police had earlier said that the force and the BSF would do everything possible to prevent any attempt by non-Indians to enter the country from Bangladesh, as per law, following a political turmoil in the neighbouring nation in 2024.
However, all Indian passport holders have been allowed to return from trouble-hit Bangladesh through the entry point in the state.
