Rangarajan said though there may be negative growthin the GDP during the first quarter, if the situation recoversduring the next three quarters, the growth rate may be closerto 3.5 per cent.
"The most important thing is that the hardship ofthe lockdown is being borne very severely by the vulnerablesections."
Because of the closure of the factories, the dailywage earner including the migrant labourer has been severelyaffected, he said.
"Therefore if lockdown is absolutely essential, thenI think something must be done to take care of these peoplewho have been thrown out of employment.
And therefore this announcement should have beenaccompanied by an announcement regarding what and how theywill take care of these people... Immediately in his (Modi)speech or elsewhere we should have seen (measures forlabourers and daily wage earners).
Even today in the relaxation norms, along with itperhaps some announcements on how the migrant labourer andothers will be helped.It is also necessary," Rangarajna told.
The former RBI Governor said the government has goneby medical advice to impose a lockdown and by the same advicethey expanded the lockdown also which is essential to combatthe coronavirus spread.
The lockdown has brought the economic activity to"halt", he said.
"Perhaps in the first quarter of the year, the GDPgrowth may even be negative.But that could be made up by thegrowth in the next three quarters.
Some people have estimated the growth rate to beabout 2 per cent. But I think probably it will be closer to3.5 per cent for the year as a whole.
But that all depends on how long this virus willcontinue, he said when asked about the lockdown impact on theeconomic growth. GDK BNWELCOME BNWELCOME