Lot will depend on how India exits from lockdown: Kaushik Basu

Kolkata, May 13 () India took the right call byannouncing a prompt lockdown in March in the wake of theCOVID-19 pandemic, but a lot will depend on how the countrymakes an exit from it as the landscape of the global economywill change by then, former chief economic advisor KaushikBasu said on Wednesday.

The basic issues at present are the concerns about thefood chain, jobs and migrant workers, which have to beresolved immediately, he said.

"The first move of a quick lockdown made by India wasright. It was called for. Now, a lot will depend on how Indiaexits from the lockdown as landscape of the global economywill change by then," Basu, a professor of economics atCornell University, said during a webinar hosted by the BengalChamber of Commerce.

He said extending tax benefits might not be enough asthe poor need direct support.

"Just giving tax benefits is not enough. Poor peopleshould be given cash. But, this will not lead to hyperinflation," the former World Bank chief economist said.

"I am optimistic about the long-run indicators of theeconomy of India. The problem is with the perception of thepeople, who perceive more danger and risk than economy. Thatcan jeopardise the entire process of recovery. The issue ishow we balance these," Basu added. DCRBT RBT