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LATEST NEWS UPDATES | A guide to flattening the curve of economic chaos -Jayati Ghosh

A guide to flattening the curve of economic chaos -Jayati Ghosh

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published Published on Sep 3, 2020   modified Modified on Sep 3, 2020

-The Hindu

Well-thought-out policies can reverse the results of incompetence; the onus is on the Centre to spend now

Now it is official: India has managed to become the global leader in the number of new daily cases of COVID-19 and the worst performing of all major economies during the pandemic so far. How did we manage this double feat? Not through ‘acts of god’, but because of the incompetence and apathy of our current leadership.

Data on the decline

The estimated 24% GDP contraction in April-June 2020 compared to the previous year is the worst performance among G20 economies, and even compared to other South Asian countries. But these numbers are likely underestimates because they are based on information from the formal or organised sector, extrapolated to informal unorganised activities. The actual decline is probably worse. Physical indicators such as the index of industrial production (covering registered manufacturing) declined by more than 20%, but ground reports indicate that unorganised manufacturing declined by much more. Many micro, small and medium enterprises (MSMEs) in manufacturing and services are still closed or functioning at a small fraction of their capacity. Wage incomes are falling more sharply than GDP because of the combination of employment declines and falling wage rates.

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The Hindu, 3 September, 2020, https://www.thehindu.com/opinion/lead/a-guide-to-flattening-the-curve-of-economic-chaos/article32508219.ece?homepage=true


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