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Raghuram Rajan: India needs to be cleverer in lifting lockdown

Rajan said that it is all too easy to cover a lockdown forever, but obviously that is unsustainable for the economy

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Raghuram Rajan

Raghuram Rajan

Former Reserve Bank of India (RBI) Governor Raghuram Rajan on Thursday said that unemployment numbers are really worrying and India needs to be "cleverer" about lifting the lockdown. Rajan's remarks came during his interaction with Congress leader Rahul Gandhi, via video conference, on the economic crisis due to ongoing lockdown which is scheduled to end on May 3. "The numbers are really worrying. If you look at CMIE, virtually another 100 million more people have been put out of work as a result of COVID. 50 million through unemployment and 60 million through leaving the labour force," he said while responding to Rahul's query that India has a high level of unemployment, that is now going to be massive.

"I think it says, we need to open up in a measured way but as fast as possible so that people start having jobs. We don't have the capacity to support people across the spectrum for too long. Being a relatively poor country, people start out with significantly lower reserves," he said. "But we have to be cleverer about opening up. Perhaps do mass testing. Take a mass sample, say 1000 samples and check in mass, if there is any sign of the virus in those mass samples. If you do find it, then go deeper into the sample and check who it might be. This way it would reduce the burden on our test infrastructure and can allow us to try and vet much more. We have to be cleverer since we simply cannot wait till we have that kind of testing," the economist said.

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