Noted economist Prof Kaushik Bose supports package given to MSMEs, pleads for coronavirus impacted corporates & poor

Economist Kaushik Basu - Biography, Theories and Books

Dr KAUSHIK Basu, the former  Chief Economic Advisor to UPA Government, has hailed the incentives given to   MSMEs saying corporates also need to be given space to produce and earn profits. The invisible hand should be allowed to function. The government cannot take full control. It would be a disaster with top-down control. We will have to work in terms of taxation, policies for transfer to the poor. In the last two years, India’s growth slumped but the ease of doing business indicator was good that created space for business. We have to remember global players are worried about India. The month of March saw 16 billion capital outflows from India, the biggest outflow in a single market. There are global companies moving business to other countries. We have to be careful about that and have reforms that ensure a good future for us,  the Kolkata born economist opined at The Bengal Chamber of Commerce & Industry organized a webinar on the impact of COVID-19 effect on trade and commerce. India does have a remarkable bureaucracy. There is a whole bunch of people who are well-meaning and extremely talented. We have to harness that and design a package. During a calamity like this, there should be direct support of food and healthcare to the poor as a centralised effort. India has unacceptable levels of inequality and we have to have a system of taxation where the rich have to pay a higher tax, wealth tax which has to be transferred to the poor.

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