Monday, 16 May, 2022
HomeEconomyBlame Modi govt's political, social agenda for slowdown, says Raghuram Rajan

Blame Modi govt’s political, social agenda for slowdown, says Raghuram Rajan

Former RBI governor Raghuram Rajan says Modi govt has focused more on fulfilling its political and social agenda rather than paying attention to economic growth.

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New Delhi: Former RBI governor Raghuram Rajan has said slowdown in growth is due to the current government focussing more on meeting its political and social agenda rather than paying attention to the economy.

India can still reverse its slowing economic growth by paying attention to key issues, he said.

“It’s a sad story, I think most recently, it is politics,” Rajan said in response to a question on what was stopping India’s growth which remains below potential.

In an interview to Bloomberg TV, Rajan said unfortunately the current government after a massive election win has “focussed more on fulfilling its political and social agenda rather than paying attention to the economic growth”.

“Unfortunately, this drift has continued a pace of slowing growth, which was precipitated initially by some actions the government took such as the demonetisation and a poorly rolled out Goods and Services Tax (GST) reform,” Rajan said.

India’s GDP growth hit nearly 7-year low of 4.7 per cent in the December quarter, as per official data released on Friday.

The GDP growth for the quarter is the lowest since January-March of 2012-13.

In the interview, which was telecast before the official numbers were released, Rajan said India has not paid sufficient attention to cleaning up the financial sector and unfortunately, that is leading to the slowing growth.

“These are things that they can change if attention is paid to them and appropriate actions are taken,” Rajan, Professor of Finance at University of Chicago Booth School of Business, said.

On being asked about the spread of the coronavirus globally and its impact, he said there will certainly be some legacy issues in terms of business rethinking in the global supply chain.

“If it is disrupted anywhere, the entire supply chain is held ransom and companies are going to start rethinking that should we actually have these really spread out global supply chain or to bring them back closer home and how much diversification should we have. Should we have multiple production sites across the world rather than have it focussed primarily in Asia,” he said.


Also read: Slowdown persists, economy grew 4.7% in Q3 2019-20, lower than 5.1% in Q2


 

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15 COMMENTS

  1. Just as sonia gandhi has made a former rbi governor PMRajan may be under illsion that rahul will make him PM otherwise he has no reason to oppose PM.

  2. This megalomaniac did not know how to do his job. He strutted around the country, mesmerized by the sound of his own voice and his groupies in the media.

  3. With due respect to Rajan sir ,I have to opine That Mr .Modi and team can take care of Indian economy.
    Once out of country and not holding any job of responsibility in the GOVERNMENT,one need not comment on INDIAN affairs.

    • Mr. Rao, just because he does not work in India so he cannot comment on Indian affairs be it Rajan or any one on any issue is a wrong notion and that is the reason why RSS Mohan Bhagwat says do not talk of economic slow down talk of nation building, look at the folly of the ruling group under Narendra Modi.

  4. Dr.Raghuram Rajan should shed his academic gown and throw his political hat in the ring. Like everyone, he too is at liberty to enter public life. Last two years, I have been seeing that his statements are politically loaded and thinly veiled in the language of economics. He can’t continue to masquarade as an economist.

  5. If at all Indian Banks are facing problems, it is because of Rajan’s policies. His Indian Boss is facing music now and natural for him to cry foul. We Indians know better than this guy on what’s happening. Modi did good by not sending him unceremoniously. No one can arrogate intelligence to himself. Rajan is playing politics without citing valid action point to improve the economy.

  6. The chai wala and the lawyer could not demonetizeto cut “corruption” as long as Rajan was there. Only morons do not know why he was refused 2nd tern.

  7. Rajan was not given a second term because of his incompetence his refusal to lower interest rates when badly needed caused damage to the economy
    Now instead of concentrating on his Job in USA he is again wasting his time interfering in India
    Modi has cleaned the mess of 70 years of misrule
    Only Print which is antiModi will give a platform for Rajan

    • The government had no business to poke its dirty nose in the functioning of RBI, which is supposed to be a completely autonomous body. If Rajan didn’t lower the interest rates, he had a perfectly good reason to do so. WHO TOLD YOU THAT THE LOWERING OF INTEREST RATES WERE BADLY NEEDED? AND HOW DO YOU KNOW THAT IT CAUSED DAMAGE TO THE ECONOMY, WHEN MODI GOVERNMENT WAS CAUSING THE DAMAGE? MODI HAD SCREWED UP THE ECONOMY BY HIS DEMONETISATION STUNT! EVEN NOW HE IS DOING NOTHING TO IMPROVE THE ECONOMY. Rajan is paying his full attention to his job, it is Modi who is messing up the economy. The whole world gives a platform to Rajan.

    • You have a satch in your name and shoot in your words. Are you paid to say these inanities or do you do it for free?

    • Rajan was incompetent and present RBI governor, a history graduate is the the most competent person. This happens when you pass your economics or business degree from a Jhumri Tilaiya sort of university. Not your fault . Bloomberg went to ask him this question and you have come to his webpage to comment. This is the difference and best thing is that he has at least a job but due to competent policies you have to work in an IT cell and getting Rs 2 for posting message.

    • O. K., Then what the new RBI governor did to correct the path. Or he is also incompetent? So nobody is responsible for the present mess except Rajan. What about the govt, NitiAyog, the FM and others who are involved in the finance dept. First one must have the courage to accept the reality. Then you will find the way to correct it. You can’t go on blaming others for the mess you created.

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