Need to open schools, continue PMGKY, says former RBI Governor Raghuram Rajan

Former RBI Governor Raghuram Rajan said that reopening of schools and the flow of money to the poor would be crucial as the country limps back from the onslaught of the Covid-19 pandemic.

"We need to open the schools so that the children do not lose years of education and provide remedial education. That's going to be very important," Rajan told NDTV in an interview.

Stating that there was a need to continue the Pradhan Mantri Garib Kalyan Yojana (PMGKY), he said that money needs to be given to the ones who need it the most so that "they can put food on the table".

Rajan also said that India would have to roll out the Covid-19 vaccines quickly so as avoid the second wave. At the same time, he mentioned that the country has been able to successfully curb the virus to an extent, unlike the US where although there was a dip in the number of cases, it was not a strong trend.

"Mobility is increasing, the middle class is spending, so growth is coming back. The question is how damaged or scarred the economy is," Rajan said, talking about India.

Rajan pointed out that there would also be a need to increase infrastructure spending and focus on recapitalisation of banks.