Government needs to increase spending power of people, says Nobel laureate Abhijit Banerjee

Nobel Laureate Abhijit Banerjee has shared his views on India's growth challenges. Speaking at an event in New Delhi, Abhijit Banerjee said that the government need not cut corporate tax from here on since the demand cycle is slow. He also spoke on the CAA-NRC debate and said that it is a big governance issue.

Banerjee said, "No more cuts in corporate taxes. The corporate sector is actually sitting on cash right now, it is not investing. The clear fact is that the corporate sector is not short on cash, it is not investing. Why it is not investing? Because there is every sign of a demand problem. You talk to people in the corporate sector. They say right now there is no market for what I am going to sell. So, you have to get the demand side going, you need to get the money into the hands of the people who will spend it now, who need the money. So, get money in the hands of poor people."