New Delhi: Indian-origin economist Abhijit Banerjee won the 2019 Nobel Economics Prize along with wife Esther Duflo, and another scientist Michael Kremer for their experimental approach to alleviating global poverty. The 58-year-old economist, who completed his Masters from JNU, has time and again talked about Indian economy.
Economy on shaky ground
The data currently available do not hold any assurance for the country’s economic revival anytime soon, the economist said as quoted by PTI. “The condition of the Indian economy is on shaky ground. After witnessing the present (growth) data, just can’t be sure about it (revival of the economy in the near future). “In the last five-six years, at least we could witness some growth, but now that assurance is also gone,” he added.
Demonetisation not effective
According to reports, the Nobel laureate was critical of the decision of demonetisation. In a paper, he wrote that the note-ban led to a massive liquidity crunch. the brunt was borne by the informal sector where 85 per cent or more of the Indian labour force is employed.
Banerjee backed India’s microfinance experiment saying that short-term access to credit allows a significantly higher proportion of talented entrepreneurs to scale up their businesses.
At Brown University last week, Banerjee reportedly talked about Centre’s big-ticket economic decisions. “I talk to my business friends. And they say that it is impossible to invest, you don’t know who is going to call you up and say that’s not the right thing to do,” he said, as reported by NDTV. “They say ‘ok wait, we will check with the PMO’. PMO is busy, so nothing happens,” he reportedly said.
Nyuntam Aay Yojana
Before announcing its Nyuntam Aay Yojana or the minimum income scheme, the Congress had consulted Abhijit Banerjee. According to reports, Banerjee had suggested a minimum income guarantee of Rs 2,500 per month, keeping in mind the fiscal discipline. The Congress went ambitious and announced a scheme of Rs 6,000 per month.