RBI guv’s optimism

1 min read . Updated: 25 Mar 2021, 10:49 PM IST Livemint

We know a lot more today, and lessons from the first wave can aid the formulation of a strategy that minimizes damage on both counts

As concerns rise of another blow to our economy delivered by a second wave of covid-19, Reserve Bank of India (RBI) governor Shaktikanta Das has sought to calm frayed nerves. On Thursday, Das acknowledged that the resurgence was a matter of concern, but added that India’s economic revival will continue unabated. This, he said, is because lockdowns are not foreseen and we also have vaccines in our defence.

While Das’s optimism should keep panic at bay, there is no denying a jump in uncertainty over what lies ahead. Signs have been detected of a loss in business momentum, and data suggesting India’s financial centre Mumbai is faring worse than it did last year has caused much anxiety. Our nationwide caseload seems headed back to the elevated levels of September 2020. This uptrend needs to be reversed and our vaccine drive alone is unlikely to do it. Policymakers may again be faced with the terrible trade-off of lives versus livelihoods. Striking an optimal balance should not be as difficult as it was a year ago. We know a lot more today, and lessons from the first wave can aid the formulation of a strategy that minimizes damage on both counts. Jaan and jahaan, as Prime Minister Modi had once said, needn’t be an either-or.