Economy

Reliance Industries in India has recently invested Rs 620 crore in NetMedes, a Chennai-based online pharmacy company.

Reliance Retail Ventures has made these investments in Vitalik Health and its affiliates. The companies in this group are known as NetMeds.

With such a huge investment in Reliance Industries' online pharma company, there is a lot of competition expected to start in online pharmacy or e-pharmacy in India.

Amazon has already entered this. The pilot project of its Pharma Service has started in Bengaluru. At the same time, Flipkart is also preparing to come in this area.

Netmeds is an e-pharma portal selling prescription-based medicines and other health products. This company does home delivery of medicines.

Similarly, there are already many startups in the field of e-pharmacy. Such as 1mg, PharamaEasy, Medlife etc.

Before the arrival of these big players, the debate has started again about the e-pharmacy platform which was in controversy.

Institutions representing retailers and pharmacists have raised concerns over snatching employment of millions of people. However, e-pharma companies deny this.

Letter written to Mukesh Ambani

The All India Organization of Chemists and Druggists Association (AIOCD) has written a letter to Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, objecting to the investment in his netmaids.

The letter reads, "It is very sad to see a company of Reliance industry investing in an illegal industry." The letter says that the e-pharmacy industry is not under the Drugs and Cosmetics Act (Drugs and Cosmetics Act) Aata, which regulates the import, manufacture, sale and distribution of medicines.

AIOCD has written one such letter to Amazon. The letter has also been sent to India's Prime Minister Narendra Modi, Union Home Minister Amit Shah, Union Commerce and Industry Minister Piyush Goyal and other ministries.

Working model threatens jobs

With big companies taking steps in the e-pharmacy industry, the concerns of retailers and pharmacists have increased. The institutions representing them have been objecting to e-pharmacy in two ways.

First, they believe that the working model of e-pharmacy platforms can lead to the jobs of millions of retailers and pharmacists. Their business may be closed.

Second, they raise questions about the legal aspect of operating e-pharma companies.

Abhay Kumar, president of the Indian Pharmacist Association, says that the working model of the e-pharma platform will gradually eliminate the jobs of pharmacists.

Says Abhay Kumar, "E-Pharma platforms will create their own stores, warehouses or inventory, where they will store medicines directly from companies or distributors and then supply medicines from there itself." In such a situation, the role of the local chemist shop will end. ''

There is already a crisis on pharmacists' jobs. The vacant posts of pharmacists in hospitals are not filled. After three years of study, the youth find themselves unemployed. So, as a chemist, do they want to take away the means of earning? "

Giving high discounts to e-pharma companies is also a cause for concern for retailers. AIOCD President J.S. Shinde says that a small retailer will not be able to compete with them in the way e-pharma companies offer more discounts.

Js Shinde said, "Retailer gets 20 percent and wholesaler 10 percent margin. However, new players coming to e-pharmacy are offering 30 to 35 percent discount. They can give deep discounts, can also cause some losses, but, the general retailer does not have that much capital. This will be a problem for the customers as they will be monopolized when retailers move out of the market and it will be difficult to control prices.

He says that there are around eight and a half lakh retailers in the whole country and one and a half lakh stockists and substockists, whose livelihood is about to be snatched away. Together, the working people and their families will become destitute of about 19 million people. It will be a double whammy for people suffering from recession due to Corona virus.

What do e-Pharma companies say

However, e-pharma companies completely deny all these allegations. He says that there are misconceptions among people about his working model. Their way of working will increase convenience for customers rather than take jobs, make it easier to access medicines and increase demand for pharmacists.

There are two types of business modus operandi in online selling of medicines. One marketplace and the other inventory led hybrid (online / offline) model.

In the marketplace model, e-pharmacy platforms take online prescriptions from the customer. These prescriptions can be uploaded directly to the website or app, through WhatsApp, email or fax. The prescription is then delivered to a local licensed pharmacist (chemist), from where the medicine is taken and delivered to the customer.

At the same time, in the inventory model, the company that runs the e-pharmacy platform keeps the stock of medicines itself and delivers the medicines on a prescription basis. That online platform itself acts as a chemist.

Some companies are working on a hybrid model. She also maintains a warehouse or store of medicines and also delivers medicines through contact with local chemists. They have a license to build a warehouse or store of medicines.

Now retailers and pharmacists have concerns about the inventory or hybrid model as the role of chemist shops will end in this.

But, Digital Health Platform, an association of leading e-pharmacy companies, says that e-pharma platforms will operate solely on the marketplace model.

"There are many misconceptions about the e-pharmacy model," said Dr Varun Gupta, Convenor of Digital Health Platform. The e-pharmacy marketplace model will help the existing pharmacy deliver online services. This will create a network by connecting different pharmacies on one platform. With this, inventory management will be better, access will increase, prices will be reduced and customers will get better services. ''

Doctor Varun says that the Covid-19 epidemic has shown how the two mediums can work together in the sale of drugs. People have insecurity and anxiety about any beginning. Similar opposition has also been seen earlier when new technology comes.

An expert associated with the online pharmacy industry also says that they do not give too much discount. If someone continuously gives such a discount, then they will not be able to survive in the market. E-pharmacy platforms fix their margins with local pharmacists.

Abhay Kumar says that if companies adopt a marketplace model and create opportunities for pharmacists, then they have no objection but this is very unlikely. Even now some platforms are working on hybrid models. They have more benefit in this. Therefore we oppose it.

E-pharmacy platform and existing law

E-Pharma companies have been working in the Indian market for many years but are still at a very small level. The use of the e-Pharma platform has also increased in lockdown due to Corona virus. They are mostly used for chronic medicines, ie medicines of long-standing diseases.

In terms of statistics, according to a report by the Economics Times, the market for drugs for e-pharmacies in India can reach $ 18.1 billion by 2023. It was $ 9.3 billion in 2019.

But, the validity of the e-pharmacy platform has been questioned for a long time. Even this matter has reached the court.

Js Shinde says, "E-pharmacies are not currently covered under the Drugs and Cosmetics Act, so it is illegal to run them. The act does not mention online sale of drugs. So it is difficult to monitor and control them."

At the same time, e-pharma companies have been claiming that they are working in the legal realm. Dr. Varun Gupta explains that the e-pharma business model falls under the Information Technology Act, 2000, the concept of middleman, and licensed pharmacists (who deliver prescription drugs) are covered under the Drugs and Cosmetic Act. E-Pharma companies are operating under this model.

E-pharmacy draft

After the objections of many parties, on 28 August 2018, a draft of the rules was prepared to regulate the online sale of drugs, i.e. to bring them under the law. Based on this, the Drugs and Cosmetic Rules, 1945 were to be amended. Opinion was sought from general public / stakeholders on this draft.

This draft includes registration of e-pharmacy companies, inspection of e-pharmacy, process for distribution or sale of drugs through e-pharmacy, prohibition of advertisement of drugs through e-pharmacy, grievance redressal mechanism, e-pharmacy There were provisions related to monitoring, etc. But, nothing further has been done on this.

When the matter reached Delhi High Court in December 2018, the court ordered a ban on the online sale of drugs without a license. After this, the single bench of Madras directed not to do online business of medicines till the draft rules were notified. However, in January 2019, the Division Bench of Madras stayed this instruction.

It is discussed that the government is considering amending the Drugs and Cosmetics Act so that online sales of medicines can also be brought under its purview.

However, the Pharmacists and Retailers Association is considering all aspects of this and is demanding to make a law related to it.

Js Shinde says that in countries where the e-pharmacy industry is running, what are its effects and what should be done in India to avoid them. It should not be allowed without considering all the sides.

They told that we will give 21 days notice to the government that they will listen to our concerns and take any step. If there is no response from the government, then all the drug dealers will go on strike.

According to data from the Center for Monitoring Indian Economy (CMIE), around 120 million people have lost their jobs since a month of lockdown in India. Most of the people are from the unorganized and rural areas.

Most of India's 400 million jobs are in the unorganized sector.

According to CMIE, during the lockdown, seven crore people who lost their jobs in the month of April have returned to work.

This has happened again due to the resumption of economic activities and good crop yields, because it has not only provided employment to the people on a large scale, but also has given additional work to people in the agricultural sector.

The National Level Job Guarantee Scheme has also helped in this, but this good news is limited here only.

According to CMIE's assessment, 1.9 million people lost their jobs during lockdown in the organized sector.

Another report by the International Labor Organization and the Asian Development Bank estimated that more than four million Indians under the age of 30 have lost their jobs due to the epidemic. People aged 15 to 24 years have been the most affected.

Mahesh Vyas, managing director of CMIE, says, "Most of the people under 30 are affected. Companies are hiring experienced people and young people are getting hit by it."

Many believe that this is the most worrying aspect of India's slowing economy.

Mahesh Vyas says, "Trainees and those working on probation have lost their jobs. Companies are not giving jobs on campus. There is no appointment of any kind. When the next batch of youth looking for work in 2021 will be graduates, they will join the army of unemployed."

Not giving jobs to newly graduated people will mean adverse effects on income, education and savings.

Mahesh Vyas says, "This will affect job seekers, their families and the economy."

The reduction in salary and sluggish demand will also negatively impact household income.

In last year's CMIE survey, it was found that about 35 percent people believed that their income has improved compared to last year whereas only two percent of the people believe this year.

There has been a reduction in income of people from lower class to upper middle class.

According to a report, the salaried people extracted nearly four billion dollars from their essential savings in the four months of the lockdown so that they can take care of the job cuts and salary cuts.

Mahesh Vyas says, "The decrease in income has been particularly hit by the middle class and the upper middle class."

Due to no job, more and more people are snatching business from their hands. But this is not a sudden change.

A study conducted in 2017 by economist Vinoj Abraham clearly revealed that this is probably the first time there has been such a steep decline in post-independence employment between 2013-14 and 2015-16. The study was based on data gathered from the Bureau of Labor.

Labor participation reflects the active workforce in the economy. According to CMIE, this labor participation fell from 46 per cent to 35 per cent after the demonetisation enacted on 8 November 2016. This affected India's economy very badly. Currently, the unemployment rate of the current 8 percent does not reveal the reality of this worsening situation.

Mahesh Vyas says, "This happens when searching for a job becomes useless because the job does not exist."

Economic insecurity has increased a lot in India.

Researchers Marianne Bertrand, Kaushik Krishnan and Heather Schofield have studied how Indians are tackling the challenges of lockdown?

These researchers have found in their study that only 66 percent of the households have more than two weeks of resources to cope with the economic crisis.

India's Finance Minister Nirmala Sitharaman has also said that the government does not deny going to jobs.

The number of new jobs has also fallen by 60 per cent in June compared to the monthly average of the previous financial year.

Last week Nirmala Sitharaman also said, "India is going through an unusual situation like a divine event ... during this time we can see a contraction in the economy."

The cases of corona infection in India are going to be close to 38 lakhs and the economy is stagnant. The scope for a complete recovery in the economy seems far-fetched. The economy of the unorganized sector is slowly picking up speed.

Those who had lost their jobs during the lockdown and who had returned to their villages, have now started returning to their places of work with the removal of the lockdown restrictions.

Some of these are also being given more money because those who hire them want to resume their business as soon as possible.

Labor Economist KR Shyam Sundar says, "With the economy opening by the end of this year, a lot of people will be returning to their jobs but those working on salaries will take time."

Service sector is not improving in India even in August, jobs are going away

India's service sector has seen a decline for the sixth consecutive month due to the interruption of business activity and reduced demand due to the Corona epidemic.

News agency Reuters citing an industry survey has reported that the continuation of jobs continues in August due to business activities being affected.

The survey says that after the economy has shrunk from April to June in the second quarter, it will take a long time to improve the service sector.

Shreya Patel, an economist at IHS Market, told news agency Reuters, "Business operating conditions remain challenging even in August in India's service sector. Lockdown restrictions in the domestic and foreign markets have had a severe impact on the industry.

In order to protect the economy from further damage, the government has given limited permission to open underground train networks, sports and religious events even in the face of rising cases of corona virus.

However, despite the easing of restrictions, it is believed that economic activities will take a long time to return to normal as people themselves are getting less out of the house and avoiding going to malls, cinema halls, restaurants and hotels.

Due to reduced demand at both domestic and foreign levels, production is decreasing and due to this, people are still losing their jobs.

In India, the Union Statistics Ministry released the GDP figures on Monday - which is 23.9 percent.

This is considered to be the biggest historical decline in the Indian economy and is attributed to the Corona virus and the nationwide lockdown.

News of this new negative GDP figure of India, which was once the fastest growing economy in the world, has been given coverage by various newspapers and media houses around the world.

The US media house CNN has published a news report titled 'Indian economy is the fastest sinking record'.

In this news, Sheelan Shah of Capital Economics says that this will lead to more unemployment, failure of companies and a deteriorated banking sector which will outweigh investment and consumption.

In Japan's business newspaper Nikkei Asian Review, Ritesh Kumar Singh, former assistant director of the Indian Finance Commission, wrote an article titled, 'Narendra Modi shakes India's economy'.

It has been written that despite the business-supported image of Indian Prime Minister Narendra Modi, he is proving unfit to handle the economy, the dream of making the economy a $ 5 trillion (trillion) economy by 2025 is no longer fulfilled.

Coming from India's most modern industrial city, Prime Minister Modi promised that he would improve the economy and create 1.2 crore jobs every year. After a wave of optimism from the office for six years, the Indian economy has fallen into disrepair. In which GDP has fallen for the first time in four decades and unemployment is at its peak so far. Large engines of growth, consumption, private investment or exports have stalled. Above all, the government does not have the capacity to come out of the recession and spend it. ''

The article states that the only omission of Prime Minister Modi is not just to handle the economy but he has failed in the matter of ending corruption.

Modi had announced the disastrous demonetisation aimed at ending black money. This created an atmosphere of anarchy, the scheme devastated millions of farmers and owners of medium and small industries. However, his supporters said that all this is for a short time and it will benefit further in fighting corruption.

In this article, apart from GST, FDI, increase in import duty on 3600 products and Prime Minister Modi's belief in only a few bureaucrats have been explained in this article.

The American newspaper The New York Times has also given this news its place.

The Indian economy has been the worst of the world's top economies. While the US economy has fallen by 9.5 percent in the same quarter, the Japanese economy has recorded a decline of 7.6 percent.

Waste of economy more than these figures? The newspaper The New York Times writes that India has a different picture in terms of economy figures because most people here are engaged in 'irregular' employment in which there is no written agreement for work and often these people are outside the purview of government. , These include rickshawlers, tailors, daily laborers and farmers.

Economists believe that this part of the economy has to be ignored in official figures, while the total loss may be even greater.

The newspaper further writes that the economy of a country with a population of 130 crores was growing at a growth rate of 8% only a few years ago, which was one of the fastest growing economies in the world.

But it began to decline before the corona virus epidemic. For example, in August last year, car sales fell by 32%, the highest in two decades.

Data on Monday showed consumer spending, private investment and imports were severely affected.

Areas such as trade, hotels and transport declined by 47%. India's construction industry, once the strongest, has shrunk to 39%.

The newspaper writes that only good news came from the agricultural sector, which has developed from 3% to 3.4% due to good monsoon rains.

Prime Minister Modi said that he wants to make the Indian economy an economy of 5 trillion USD by 2024. There is a general election in 2024 and he may contest for the third time. India's GDP in 2018 was 2.719 trillion USD which was the seventh largest economy in the world after USA, China, Japan, Germany, England and France. However, many economists believe that India's economy will shrink by 10%. ''

The Financial Times newspaper is titled 'Indian economy shrunk by one quarter'.

The newspaper writes that India's economy was already in a shambles before the corona virus hit, but the world's biggest lockdown had a major impact on industries such as manufacturing and construction, and business activities were virtually stalled.

The newspaper wrote that RBI Governor Shaktikanta Das had said with great confidence during the interview that the RBI could protect the economic stability or banking system from the brunt of the pandemic, speculating a next level of economic stimulus.

The Indian government has banned 118 mobile apps developed in China, including the gaming app PUBG.

A statement issued by the Ministry of Electronics and Information Technology said that these apps have been banned because they were involved in activities against India's sovereignty and integrity, defense of the country and public order.

The statement issued by the ministry said, "This step will protect the interests of crores of mobile and internet users in India." This decision has been taken with the intention of ensuring the security and sovereignty of India's cyberspace. ''

According to the statement, the Government of India was receiving complaints about these apps from various sources, including reports that users' data from some mobile apps available on Android and IOS were unauthorizedly stolen and sent to servers located outside India. Were staying.

The decision to ban 118 apps in China has been taken at a time when there are reports of tensions between the two countries on the Line of Actual Control or LAC in Ladakh once again.

The Indian government had earlier banned 59 apps related to China in June. They also included Tiktok.

The last decision to ban 59 Chinese apps was taken a few days after a violent clash between Indo-Chinese troops in the Galvan Valley on July 15.

The growth rate of India's gross domestic product (GDP) declined drastically in the quarter to the first months of the lockdown.

According to the Ministry of Statistics of the Central Government in India, the first quarter of the financial year 2020-21, between April to June, the growth rate has fallen by 23.9%.

It was estimated that India's GDP rate could fall to 18% in the first quarter due to the corona virus epidemic and nationwide lockdown.

At the same time, India's largest public sector bank SBI had estimated that the rate could fall to 16.5%, but the latest figures are shocking.

The Indian economy saw growth of 3.1% in the January-March quarter, the lowest in eight years.

GDP figures show that consumer spending slowed, private investment and exports declined in the March quarter. At the same time, the rate for the same quarter of June last year was 5.2%.

These new figures of GDP have historically been called the biggest declines since 1996.

These statistics have been said by the Ministry of Statistics that due to the corona virus epidemic, the data collection mechanism has been affected in addition to economic activities. The Ministry of Statistics has said that the lockdown was imposed in the country from March 25 after which economic activities were stopped.

The Statistics Ministry has said that most bodies had extended the deadline for filing legal returns. Under these circumstances, sources of data like GST were limited.

What is GDP

Gross domestic product (GDP) is the total value of all goods and services produced in the country in a given year.

Sushant Hegde, an economist at research and ratings firm care ratings, says GDP is just like a 'marksheet of a student'.

The way the marksheet shows how the student has performed throughout the year and in which subjects he has been strong or weak? In the same way, GDP shows the level of economic activity and it shows that which sectors have accelerated or declined.

This shows how well or poorly the economy has performed over the year. If GDP data shows sluggishness, it means that the country's economy is slowing down and the country did not produce enough goods as compared to last year and the services sector is also declining.

The Central Statistics Office (CSO) in India estimates GDP four times a year. That is, GDP is assessed every quarter. Every year it releases annual GDP growth figures.

Due to the weakening of US dollar against the major currencies of the world, countries buying crude oil are getting oil cheaper. America's Energy Information Administration (EIA) has given this information on Friday.

Crude oil is traded in US dollars only, due to which the oil is getting cheaper for those countries whose currency has strengthened against the dollar. Countries in the eurozone are also included in this. Among them, there are many countries which import crude oil. Between June 1 and August 12, Brent crude oil prices have increased by 19 percent.

But according to EIA estimates, due to the increase in the price of the euro against the dollar, this increase in the euro has been only 12%. For the past few months, Brent crude oil prices and dollar prices have been rising in opposing directions.

While Brent crude oil is getting expensive, the dollar is weakening against global currencies. In recent weeks, global demand for crude oil has been projected to decline due to the impact of the epidemic, but the weakening dollar has only supported oil prices.

The weak US dollar means that oil buying countries are getting cheaper. According to the EIA list report this week, 4.5 million barrels of crude oil have been extracted in the week till 7 August. At the same time, seven lakh barrels of gasoline and 23 lakh barrels of distillate fuel have come down from the list.

This has led to an increase in oil prices. This oil shortage caused oil prices to rise slightly, but the International Energy Agency and OPEC have lowered their oil consumption estimates for this year and acknowledged that the global impact on the Corona epidemic will be much higher than anticipated.

US President Donald Trump said on Saturday that he could also increase pressure on other Chinese companies, including Alibaba.

Trump has already been banned from China-based Ticketock. At a press conference when Trump was asked if he was considering banning some other Chinese companies, including Alibaba, Trump replied, "Yes, we are looking at other things as well." '

Trump has been putting pressure on companies owned by China.

They have already banned Tiktok. The US on Friday also issued an order to ByteDance, a Chinese company, to stop TickTock's operation within 90 days.

The United States has increased this pressure on personal data security.

Trump has been a constant attacker on China for quite some time. He has transformed US-China trade relations into a central theme during his tenure.

However, there have been some occasions when he has also praised China. Trade agreements were also signed between the two countries last year praising the purchase of agricultural products such as soybeans and maize.

According to the former Prime Minister of India, Dr. Manmohan Singh, India must take three steps immediately to deal with the damage caused by the corona virus epidemic.

The credit for the economic reform program in India is largely given to Dr. Manmohan Singh. Former Prime Minister Manmohan Singh spoke to the BBC via email this week. Due to the corona virus, there was no scope of discussion sitting face to face. However, Dr. Singh refused the interview through a video call.

In an e-mail conversation, Manmohan Singh mentioned three steps needed to prevent the corona virus crisis and normalize economic conditions in the coming years.

What are the three steps suggested by Dr. Singh?

The first step, he says, is that the government should "ensure that people's livelihoods are safe and that they have enough money to spend on their hands directly through cash assistance."

Second, the government should provide sufficient capital for businesses. For this, a "government-backed credit guarantee program should be run."

Third, the government should solve the problems of the financial sector through "institutional autonomy and procedures".

India's economy was in the grip of sluggishness even before the epidemic started. India's GDP (gross domestic product i.e. GDP) has grown at a mere 4.2% in 2019-20. It has the lowest growth rate in nearly a decade.

After a long and difficult lockdown, India has now started opening up its economy slowly. However, the number of infected is constantly increasing and the future seems uncertain.

On Thursday, India became the third country to cross the 20 lakh mark in terms of Covid-19 cases.

Deep and long lasting economic slowdown

Economists have been warning ever since that India's GDP growth could decline for the financial year 2020-21, leading to the worst recession since the 1970s.

Former Prime Minister Dr. Manmohan Singh says, "I don't want to use a word like 'depression', but a deep and long-lasting economic slowdown is certain."

He says, "This economic slowdown has come due to humanitarian crisis. It needs to be seen from the perspective of the spirit of our society rather than merely economic data and methods.''

Former Prime Minister Dr Singh says that there is a consensus among economists about the economic contraction (economic contraction) in India. He says, "If this happens then it will be the first time in India after independence".

He says, "I hope that this agreement is proved wrong".

Lockdown enforced without consideration

India implemented a lockdown in late March to prevent the spread of the corona virus. Many believe that the lockdown was haphazardly implemented, and it was not anticipated that millions of migrant workers would leave big cities and move to their villages.

Dr. Singh believes that India did what other countries were doing and "there was no other option but lockdown at that time".

He says, "But, the government's sudden implementation of this big lockdown has caused unbearable suffering to the people." There was no thought behind the sudden announcement of the lockdown and its tightness and it was insensitive.''

According to Dr. Singh, "Public health emergencies such as the corona virus can best be handled through local administration and health officers." Comprehensive guidelines were issued by the Center for this. Perhaps we should have handed the war of Covid-19 to the states and local administration somewhere before.''

Dr. Manmohan Singh was in the vanguard of the economic reforms of the 90s

A Balance of Payments (BOP means the difference between the total capital coming out of the country and the capital going out of the country at a given point of time) After the crisis almost reached the verge of bankruptcy in India, as Finance Minister Dr. Singh led an ambitious economic reform program in 1991.

He says that the 1991 crisis was a domestic crisis caused by global factories. According to Dr. Singh, "But the current economic situation is extraordinary due to its comprehensiveness, scale and depth".

He says that even in the second world war, "the whole world was not closed together like it is today."

How will the government meet the shortage of money?

In April, Narendra Modi's BJP-led government announced a relief package of $ 266 billion. It included measures to increase cash and announced steps to revive the economy.

The Central Bank of India, Reserve Bank of India, ie the RBI has also taken steps like cutting interest rates and giving relaxation in repayment of loan installments.

With the government declining tax, economists are debating how the government, which is facing cash shortages, will raise money for direct transfers, provide capital to sick banks and provide loans to businessmen.

It is not wrong to borrow

Dr. Singh tells the answer to the borrowers. He says, "More borrowing is fixed." Even if we have to spend an additional 10% of GDP to meet military, health and economic challenges, we should not back down.''

They believe that this will increase India's debt to GDP ratio (ie GDP to debt ratio), but if borrowing can "save lives, the country's borders, restore people's livelihoods and increase economic growth" If there is no one should be averse to doing so.

He says, "We should not be shy in borrowing, but we should be sensible about how we are going to spend this borrowing?"

Dr. Singh says, "In the past, taking loans from multinational institutions such as the IMF and the World Bank was considered a weakness of the Indian economy, but now India can take a loan with a stronger status than other developing countries.''

"India has a great track record as a borrowing country," he says. Taking loans from these multinational institutions is not a sign of weakness.''

Will avoid printing money

Many countries have decided to print money to overcome the current economic crisis so that money can be raised for government expenditure. Some important countries have suggested the same thing to India. Some other countries have expressed concern that this will pose a risk of rising inflation.

Until the mid-1990s, the fiscal deficit (financial deficit) was directly offset by the RBI and was a common practice.

Dr. Singh says that India has now moved forward with "financial discipline, bringing institutional freedom between the government and the Reserve Bank and curbing free capital".

He says, "I know that the traditional fear of high inflation due to more money coming into the system is probably no longer in developed countries. But, with the injury to the autonomy of RBI for countries like India, the effect of printing money in an unbridled manner can also be seen in the form of currency, trade and inflation.''

Dr. Singh says that he is not rejecting printing money to make up for the deficit, rather he is "merely suggesting that the level of resistance should be very high for this and it is only meant as a final feed Should be used when all the remaining options have been used.''

India left from protectionism

They warn India to become more protectionist (imposing trade barriers like imposing higher taxes on imports) on the lines of other countries.

He says, "In the last three decades, India's trade policy has benefited every section of the country."

As Asia's third largest economy, today India is in a far better position than it was in the early 1990s.

Dr. Singh says, "India's real GDP is 10 times stronger today than it was in 1990. Since then, India has pulled out over 30 crore people from poverty so far.''

But, an important part of this growth has been India's trade with other countries. The share of global trade in India's GDP has increased almost five times during this period.

This crisis forced everyone

Dr. Singh says, "India has become more integrated with the world today. In such a situation, anything that happens in the world economy also affects India. The global economy is badly hit in this epidemic and it is a matter of concern for India as well.''

At the moment, no one knows what the full economic impact of the corona virus epidemic is? Nor does anyone know how long it will take for countries to overcome it?

"The previous crises were macroeconomic crises for which there are tried economic tools," he says. ''We are now facing an economic crisis created by an epidemic that has filled uncertainty and fear in society. To deal with this crisis, using monetary policy as a weapon is not going to prove effective.''

India's largest automobile company Maruti Suzuki has incurred a quarterly loss for the first time in the last fifteen years. The company's production and sales were badly affected by the Corona lockdown.

The company incurred a loss of Rs 2.49 billion in the quarter ending on June 30. Last year the company made a profit of Rs 14.36 billion during the same period.

During the first quarter of the financial year 2020-21, the company's sales have fallen by 80% compared to the previous year. In the first quarter of this year, the company was able to sell only 76,599 units of vehicles.

However, the company says that it had stopped production from March 22 due to the lockdown, so the sales figures are not good for comparison.

The US dollar witnessed a sharp decline on Wednesday amid the Corona crisis. The US dollar is said to be at its lowest level in the last two years.

At the same time, pressure has been increased on the Central Banking System of the US 'Federal Reserve' to take necessary steps such as reduction in interest rates to prevent the decline.

Although the market expects the government to remain calm for the moment, some analysts speculate that the 'Federal Reserve' may take some far-reaching steps, given the way the Corona infection in the US and the tense environment is growing.

Derek Halpenny, head of research at MUFG Bank, one of Japan's largest banks, told news agency Reuters, "These things mean that we should expect more dismal conditions of economic growth." We should also focus on the US dollar to some extent.

The US dollar fell 0.4 percent against other currencies this Wednesday. This is the lowest level of US dollar since June 2018.

The US dollar has weakened 3% since the last meeting of the 'Federal Reserve'. US consumer confidence has weakened more than expected in July.

This indicates that people are reducing expenses due to increasing cases of corona infection.

"Given the concerns of the second wave of transition, the market feels that the Federal Reserve will decide to reduce interest rates," says Yujiro Goto, market expert at Nomura Security.