Raghuram's new warning: There is no direct recession in India right now but economic laxity

Five years ago today, our former RBI Governor Raghuram Rajan, whose name is now ringing in Europe as the one who predicted the current recession in Europe, expressed a different kind of fear of recession and warned the world's emerging economies that if strategic economic policies and business systems are not formulated If not, the global initial wires of the boom will also disappear. And now the same is happening in Europe-America. The story behind Mr Sunak's growth in Britain is indeed the whispering winds of recession. The era of the concept of global village as propounded by scholars including Marshall McLuhan has risen and is now beginning to wane as each country formulates policies only for its own personal commercial interests.

Raghuram says that there is no hindrance in trade-trade practices but the international monopoly running under the barrage of trade policy will destroy the world market in stages. He identified the slowdown as a long shadow of the Sino-US trade war and a global recession was certain if the trade war continued. Raghuram is known as an in-depth study of recessionary prospects and a prominent economist. Is. He was the first to predict the severe global recession of 2008, but then he clearly said that there is no way that the recession of 2008 can be postponed or considered impossible, and that the recession of 2008 will take the whole world into its fold and indeed it happened. was But this time the possible recession can be converted into a boom if the world community is aware of the possibility of a recession he declared.

Raghuram's earlier prediction that came true was an economic depression and the current fear is a commercial depression, which may take the form of a full-blown economic depression going forward. That is, the current recessionary wires are commercial. Countries like India still have a high percentage of profit in the total revenue of commerce. Also, the concern that Raghuram still expressed is in fact the depression that will follow the recession. Without mentioning the new lobbying that has started in international trade, he strongly insisted on calming the trade war between the US and China, if it is not done today, the global trade will be divided into two parts and eventually the depression will reverberate like a deluge on both sides, i.e. the US or The countries that live next to China will also fall into recession like these superpowers. About the collapse of the Indian rupee, Raghuram expressed strange confidence that it was an auspicious sign.

He pointed to the rupee's future strength and also said that the rupee has not actually weakened at the moment but that the rupee's depreciation is actually just a negative reaction to the rise in the US dollar. It will not take long for the rupee to strengthen again. Raghuram's inability to say this has made Nirmala Sitharaman's statements the subject of cartoons across the country. Raghuram says that there is no outright recession in India right now, but economic laxity. The aftershocks of demonetisation, GST and Corona are still going on. GST is an overnight tax regime with a shock that has gradually subsided, but the effects of the economic panic that demonetisation brought to the economy are still felt today.

As an interim tonic to maintain popularity, the story of various free schemes continues to be spoon-fed. The government does not have a vision of future India, the NDA alliance only wants to see its future in 2024. Till now, India was considered to be a country that was progressing at a rapid pace and was on the brink of becoming the first three economic superpowers (size and form) of the world, now there has been a break in it. Raghuram said there is an urgent need for other countries to think about the threat of recession, the Indian government should at least stop the activity of making threats in the economic sector and play an encouraging role for the economy.