As the Indian economy continues to face the headwinds of the coronavirus pandemic, Infosys co-founder N R Narayana Murthy has flagged fears that the GDP growth may hit lowest since 1947, the year of India’s independence.
As the Indian economy continues to face the headwinds of the coronavirus pandemic, Infosys co-founder N R Narayana Murthy has flagged fears that the GDP growth may hit lowest since 1947, the year of India’s independence. To prevent the same, he has pitched an idea for the government to help the economy come back on track. According to the billionaire businessman, a new system can be developed that allows every player across sectors to operate at full steam with suitable precautions. In the absence of a vaccine and a cure, Narayana Murthy also urged people to get used to living with the pandemic stating that economic activities cannot be brought to a stop.
“India’s GDP is expected to shrink by at least 5%. There is a fear that we may even reach the lowest GDP (growth) since independence, since 1947,” Narayana Murthy said at a discussion on ”Leading India’s Digital Revolution” organised by the Institute of Engineering and Technology virtually. However, India is not the only country which has derailed from economic growth. Global trade has shrunk, global travel has almost disappeared and the global GDP is likely to shrink between 5% and 10%, he said.
Defining a new normal
India had imposed a countrywide lockdown on 24 March 2020 to curb the spread of the virus. The same had a severe impact on businesses, migrant workers, among others. Speaking about the same, Narayana Murthy said that already, 140 million people workers have been affected by the coronavirus and hence a new normal must be defined. “This normal should allow our economy to grow while moving on the earth and fighting the virus,” he said. Moreover, he also emphasised on creating a health infrastructure for vaccinating everybody once a vaccine was available, since India has not invested much in public health historically as well. Further, he also proposed bringing back 140 million migrant workers back to the city to get economic growth on track again.