* ‘If you want to boost consumption, it has to be a direct benefits transfer or a universal basic income, not a personal income tax cut,’ the former CEA said in New Delhi
* Subramanian said that India has infused quite a bit of capital into stressed state-run banks and any further capital infusion should be linked to reforms
New Delhi: A universal basic income, rather than a cut in the tax on personal income, can boost consumption as India tries to come out of the grips of a deep economic slowdown, former chief economic advisor (CEA) Arvind Subramanian, said on Friday.
Subramanian, who delivered a talk on "India’s Great Slowdown" at the Observer Research Foundation, said that India should moderate its long-term economic growth expectations and take urgent steps, including setting up bad banks to acquire failed power producers and builders to counter the economic slowdown.
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