Nobel Laureate Abhijit Banerjee has said India is among the worst performing economies in the world and the government's economic stimulus was inadequate to tackle the problem. He said the stimulus measures did not increase consumption spending of lower income people as the government was not willing to put money in the hands of the low income population.
He said the country's economic growth was slowing down even before the Covid-19 pandemic hit. However, he said that the country will see a revival in growth in the July-September quarter of the current fiscal.
Talking about inflation, he said India's growth strategy was closed economy with the government creating lots of demand, which resulted in high growth and inflation. He opined India had 20 years of high inflation and high growth. The country benefited a lot from stable high inflation in the last 20 years.