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India to See a Washed-Out Economy in 2020-21: P Chidambaram

The Quint spoke to P Chidambaram to understand exactly how deep an impact is COVID-19 having on the Indian economy.

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2 min read

Video Producer: Srishti Tyagi

Video Editor: Md. Ibrahim and Ashutosh Bharadwaj

We all have many questions for the government regarding the coronavirus pandemic. The main question we want to ask is, ‘Is it getting contained?’ But the bigger question that arises is what is the government doing to save our economy and livelihood?

How is the government handling the migrant crisis?

The government recently introduced a package worth Rs 20 lakh crore. The Quint spoke to former Finance Minister P Chidambaram to understand exactly how deep an impact is COVID-19 having on the Indian economy.

The country is divided on PM Modi’s economic package. While some are calling it revolutionary, some are saying it will not actually trickle down to those in need.

P Chidambaram elucidates the numbers for us.

‘PM Modi’s Rs 20 Lakh Crore Package a Hoax’

“Where is this Rs 20 lakh crore? The correct number is Rs 1,86,650 crore. Every bank has assessed the fiscal value of the package and Rs 3 lakh crore is the most generous assessment. The government does not have that kind of money, they will have to borrow it but the finance minister is not talking about borrowing.”

‘Rating Downgrade is a Bogey’

“Rating downgrade is a bogey. Every country is going into a recession, India will not be the only country. If they downgrade India, they will have to downgrade hundreds of countries around the world. Even then the relative rating will remain the same.”

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‘People of India May Forgive but Won't Forget What the Govt Did to Them’

“The present government is taking advantage of the fact that the next Parliament election is four years away but the people of India are not fools. They have suffered so much in the last two years, and their suffering today is unparalleled and unprecedented, they will remember this even after four years. They may forgive the government today but they will never forget what the government did to them today.”

On Atmanirbharta

“Nobody is complaining about self-reliance. Every country wants to be as self-reliant and as self-sufficient as possible. But it does not mean shutting yourself from the world. One has to be competitive. It cannot be done at the cost of efficiency, competition, and being part of the world.”

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The former finance minister also said that the current government is not acknowledging suggestions and advice from economists and experts. He concluded that he sees a washed-out economy in 2020-21.

(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)

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