The past governor of RBI C Rangarajan clarifies that due to covid-19 the slump in the rise of the economy occurs as a disaster which lies for a shorter duration. The opinion was raised during ‘SICCI-360’ raised by the Southern India Chamber of Commerce and Industry, said the chairman of Economic Advisory Council Rangarajan.
“(Normally) Coma lasts for several years (in medical terms). But there are people who come out of it in a shorter period. This is a coma that is short-lived. The point is as you (gradually) lift the lockdown, I expect the economic activity to pick up,” he states. “There are indications or signs of the economy picking up a collection of GST (goods and services tax) and consumption of electricity,” he raised an issue with the associate.
As per the ministry of finance, the GST received in October enhances to Rs 1.05 lakh crore, which crosses Rs 1 lakh crore for the 1st time since February in the current year which shows a rise in the economic activity. The GST collection of revenue 
INR 1 trillion GST has been collected for the very first time in the eight months in October post unlocking from September. Any month GST collection resembles the business received in the previous month in the last month was 10% more than Rs 95,390 crore received in the same month of last year.
Giving an explanation on this “Beginning September till March, there could be a pick-up in economic activity. But it will not be adequate to compensate for the loss that happened in the first half of the financial year.” if covid-19 gets disappeared then another rise can be seen in 2021-22 further he suggests that there is a 9% growth rate for three consecutive years from 2000 and 2010. “Unfortunately, it later fell and further declined. We need a fast-growing economy and that requires not only measures not only from the government but also from the private sector.”
With the concern on the weak rupee against the USD, the inflation must have to be regulated because the internal value of currency signifies the external value, said Rangarajan.
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“Fall in value of rupee in terms of the dollar is essentially a demand for goods from the United States, which was stronger compared to Indian goods. Indian goods should be competitive,” he declares.
“The fact of the matter is the external value of the currency is essentially determined by the internal value of the currency. That is what economists were saying. In western economies, inflation has been very much under control. But our inflation rate has been much higher and it has ultimately contributed to the reduction in the value of rupee,”
There will be an impact on the financial growth of the country as the inflation rate gets decreased, said Rangarajan “The attempt to reduce inflation rates will have an adverse impact on growth. Some people think that we can sacrifice price stability to some extent for a higher rate of growth. But that is an argument that is going on. I may have a view but some other economists might offer a different view,”
