New Delhi: Nobel laureate and economist Abhijit Banerjee said that he is not sure whether India will gain if businesses shift from China amid coronavirus pandemic.
It may be mentioned that reports claim that multinational companies are preparing to shift their businesses to countries that have cheap labour such as India, Indonesia, Taiwan, etc.
Prime Minister Narendra Modi and Union Minister Ravi Shankar Prasad had asked states to utilize the opportunity.
State Governments initiate talks
After the suggestion, State governments have initiated talks with corporate companies. Uttar Pradesh has started negotiation with companies including Lockheed Martin, Adobe Inc, Honeywell, Boston Scientific, Cisco System, Fedex, etc. Some states have also decided to make changes in labour laws.
However, the Nobel laureate does not believe that it will benefit India. “If China depreciates its currency, people will continue buying Chinese products as it will be available at cheaper rates”, he added.
Give money directly to people: Abhijit Banerjee
He once again said that people should be given money directly if the government wishes to revive the economy fast.
Talking about the migrants’ crisis, he said that emergency ration cards should be given to all of them for a period of 3-6 months.
He stressed the need to increase the testing for COVID-19.