The Indian economy faced a critical balance of payments crisis in 1991. It was running out of foreign exchange. India was forced to airlift its gold reserves to Zurich to get a bailout package. The moment of great crisis thankfully had a Manmohan Singh as finance minister to push momentous reforms that changed India’s economic outlook overnight.
Manmohan Singh thus became an unlikely middle-class mascot for the Congress party. He became the bridge that took not only India but also the Congress party into relevance in the critical ’90s. Thanks to Manmohan Singh, middle-class India got new hope, as did India Inc.
Today, Manmohan Singh is 87. He was the prime minister for 10 years (2004-2014), and his last term didn’t exactly end on a good note. But he hoped history would judge him more fairly. The Congress party today needs another mascot to represent a new economic vision for India, and without doubt it’s the man sitting in Chicago.
Raghuram Rajan was chosen by Manmohan Singh as Reserve Bank of India governor in 2013, when the Indian economy started facing a relatively smaller crisis of economic growth — the buzzword then was “policy paralysis”. Rajan, like Manmohan Singh, isn’t just an economist. He’s emerged as a popular public face. How many former RBI governors’ names can most people recall?
Also read: Is Raghuram Rajan a well-meaning economist or partisan critic?
Man for the job
The Indian economy today is battered so badly that it is looking at an unprecedented crisis. Maruti Suzuki couldn’t sell a single car in all of April thanks to the coronavirus lockdown. Not like the automobile industry was doing too well before the Covid-19 crisis, either. India’s economic engines have had life sucked out of them by demonetisation, GST and now, the pandemic. This great crisis needs a new Manmohan, and without doubt, the answer is Raghuram Rajan.
If we look ahead at the next 5-10 years, it is obvious that India will need a drastically new economic vision to replace Prime Minister Narendra Modi’s command-control hocus pocus. Such a new vision can only come from the Congress, since the BJP has no time for economic talent. Modi has made his derision for “Harvard” clear.
It would be an understatement to say that Raghuram Rajan, who went to IIT-IIM-MIT, is well-liked by middle-class India. Thursday’s video call with Congress leader Rahul Gandhi made it clear, for the first time, that rumours of Rajan’s political inclinations and ambitions are true. At one point Rajan was even praising Rajiv Gandhi’s devolution of power to the panchayati raj, and Rahul Gandhi basking in reflected glory.
The Congress party could use Raghuram Rajan more closely, involve him more formally and publicly to make him in the 2020s what Manmohan Singh meant to the Congress in the 1990s.
Also read: Rahul Gandhi’s chat with Rajan shows why he should stop doing press conferences, like Modi
Pan-India appeal
Rajan can help swing NRIs, CEOs and women voters. He can help the Congress win back some of the middle-class support it has lost to Modi (and not necessarily to the BJP).
Rajan’s Hindi is pretty good, as he demonstrated Thursday when he spoke of Rs 65,000 crore for the poor. But anything he lacks in the Hindi heartland appeal, he can make up by giving the Congress greater heft in south India.
Not many public figures outside of Raisina Hill, Bollywood and cricket are able to have a national appeal that defies state boundaries. Raghuram Rajan, like Manmohan Singh, isn’t seen as a Tamil Nadu guy or a Madhya Pradesh guy (he was born in Bhopal), or a Delhi guy (he went to IIT-Delhi). This truly national appeal means he does not have any provincial baggage.
Rajan could become the symbol of a new contract between the aspirational Indian and the Congress party.
Also read: Raghuram Rajan says Covid-19 greatest emergency for Indian economy, Urjit Patel advises caution
Antidote to Modinomics
Greater public engagement by Raghuram Rajan for the Congress is just what the party needs today to assert that it has better ideas for the deep economic crisis of India 2020.
India has wasted a decade in BJP-Congress partisan politics and all we have is a personality cult amid rising unemployment. The Congress on its own is too discredited, even today, to use this opportunity. But if Raghuram Rajan becomes the voice of the Congress party on matters of business and economy, things could be different. When Raghuram Rajan speaks, Modinomics automatically looks stupid.
Raghuram Rajan has so far behaved like a political tourist in India. But perhaps the problem is that the Congress party hasn’t extended him a long-stay invite. It is time the Congress persuaded him of a higher purpose than his academic pursuits.
The author is contributing editor to ThePrint. Views are personal.
Seriously, u don’t have any understating or knowledge about RR tenor in India. All the top stalwarts of financial markets were unhappy with him. Besides, one of the reason for economy in doldrums bcoz of his policies and he knew that. MS was success bcoz of political figure NR so first go and understand the basics.
Where is the vacancy?. Mr. Manmohan Singh had been already replaced by Mr. Rahul Gandhi. For his bad luck people didn’t vote him. So he is waiting. If Mr. Raghuram Rajan has the ability to make Mr. Rahul Gandhi as PM the congress party would welcome him to the party.
Correct. If Congress has to end in India he is required. May be for congress Waterloo. Good for the country if Congress takes this bite.
I don’t think so as RRR has any political expectations or aspirations. Whether at starting point Manmohan Singh had those or not, still it’s aQ.Because at any point ManMohanSingh is concerned still today ?
RRR is scholar , a economist,a learned man, a advisor & Consultant. But when ever he feels Indian Economy in difficulty or dangerous mode , he came forward saying What I dare do ? But the Modi Government never responded him. Modi Government never takes anybody in their confidence.Only two person run it.
No doubt What you presumed about him as he not only has a middle /higher middle class appeal , but I also think he also had well known to bankers, industries industrialists& big & small. He was well known & promising face to all Indian. He is the first person to create a Q. before Govt. & common people who would after him .
Eventhough I don’t think, he has any political ambition or if he has straight way he should enter now as a proper time to to come with solutions to the economical crisis.
These are obviously not writers personal views… He is working on an agenda – and that’s obvious also because it’s The Print.
This is the Congress PR machinery working
I only have to read the headline from ThePrint to make me laugh.. it makes my day. I do not even bother to read the article, else u would die laughing.
Please stop promoting Rahul Gandhi and the Congress. The country DOES NOT need Raghuram Rajan. He is a stooge of the Gandhis. What India needs is a credible leader in the opposition. As long as the Gandhis are at the helm of Congress party, there is absolutely no chance. The Congress leaders who think that the party cannot do without the Gandhis, are really stupid. The Congress can revive only by getting rid of the dynasty. India no longer tolerates them.
Manmohan Singh is an ageing intellectual giant despite his poorer showing in the second term. One tends to forget the great economic meltdown despite which India managed a GDP growth over 5% and was on the way to recovery when he demitted office. No historian can take this away from him. While it was PV. Narasimha Rao who backed him, the economic reforms were clearly MMS antidote to economic peril, India was put under. Perhaps it is time to for Congress to project Chidambaram or Sachin Pilot as PM and Rajan as FM to tide through the current crisis created by the poor economic and political management of the Modi govt.
Mr. Rahuram Rajan is a corrupt stooge working for corrupt Congress and corrupt Chidambaram
The author is a contibuting editor of this piece of crap as they themselves have admitted!
Wow, crediting Manmohan Singh for excellent reforms done in 1991 when it was actually P.V. Narasimha Rao who was behind all the reforms!
If indeed Singh was so smart enough, why was he such a disaster without Narasimha Rao??!!
No prizes for guessing that this author is blatant stooge of the Sonia family !!!
Who cares if the Congress party needs Rajan or not…we certainly don’t !
Writing crap and unwanted advice sitting in the USA is not something we need, do we !
It was not MMS who pushed the reforms in 1991, it was P V Narsimha Rao. Singh being FM during the reforms was just incidental. In fact IMF had a bigger role in those reforms.
Except for the correct prediction of 2007-08 sub prime mortgage crisis in US, what exactly has Rajan achieved that shows he is a genius. He talks nice no doubt but so do many people in Delhi and Bombay.
He maybe a good teacher of economics but seriously how does that qualify him to be the PM of a large country like India?
Still, I would say it’s a big improvement from Kanhaiya Kumar, the erstwhile projected challenger to Modi.
Dr Singh was PM to be a mukhouta for the powers behind the curtain. He became mascot due to Late Rao, exPM.
Nobody ever heard a word of praise for him even by this अहसानफरामोश man or his party.
Rahul ji is being promoted by those दरबारी again to taste the power without any responsibilities
Firstly you can’t bring the Congress in power by writing such useless and biased topic . Until rahul is on top Congress can’t promoted other as pm candidate . Secondly you misunderstood modi so I will say ^chal be lavde pahli fursat se nikal.
Tu nikal re . Congress never get power now
Degrees from Big institutes doesn’t make you an intelligent, What is RR contribution to India? Big 0. Simply talking. Must be RAGA paid hefty amount to speak in his favor.
In my views, the opening of economy decision was of then Prime minister Narsimha Rao , who was a highly intellectual & knowledgeable person & seasoned leader, though he brought Manmohan singh ji, as FM and since Congress leadership or Gandhi family does not like Mr Rao, they put all credits to Manmohan Singh ji, we all know his capabilities when compared with PM Indira Gandhi or PM Modi , two best PMs in India. Regarding Mr Rajan, being a Professor, his risk taking capabilities are inadequate and when he used to decide about Repo rate, was always taking baby steps in 0.25% denominations, which we all know, it is only directional but hardly makes any impact. However , if you see direction clearly and reduce by 0.5% atleast , it would be impactful also and you can always skip one or two quarters , if need arises as risk preventing measure. That was the fantastic time, when we could have covered some more miles. In such a time of crisis, highly challenging and also plenty of opportunities, it is more of leadership is needed with economics , not economics with some part of leadership.
Don’t you ever get tired of people laughing at you for writing nonsense like this?
OMG. Iam laughing laughing laughing……… My stomach is aching. We have seen genius pappu chat with him another genius. Now print is another genius who thinks India needs Rajan. Hahaha…..
Congress should invite him to campaign for elections. RRR should be asked to contest in a safe seat (read where minority is majority like Wayanad), made to win a LS election. Then handle Congress benches in Parliament for 5 years, By that time Congress should revive itself. Good will come to India.
” Shoe I am ” is spreading congrass garbage through his writings and some editor’s who have received great favours during congrass regime are more than happy to oblige
You have read my mind. You have explained and put things in simple words for everyone. Only thing I will add is India needs an smart economist with heart.
I am sorry but I have to disagree. Mr. Rajan might be a good administrator but he is essentially a banker and a manager by training. We need someone at the top who has macro economics credentials. Comparisons with Manmohan Singh who was a genuine economists are totally baseless.
Why has Print disabled the comments section to be accessed by all is it not a very timid and non transparent move
Funny, Do we have another accidental PM in making? What about RaGa?
Please list his accomplishments when he was Governor of Reserve Bank of India, beside building up NPAs and doing nothing about them.
Shivam has found a new idea with which he is now fully possessed and he is dreaming big! One can understand his hatred for Modi but he needed someone to fulfill his dreams. He has now found a ray of hope in the due of RRR as FM and Rahul as PM in 2024!.
But Shivam will come to ground soon. 2024 will not be 1991 in any case. MMS was an accidental FM in 1991 and it was Narsimha Rao who was the real hero behind the scene. Again, he was accidental PM in 2004 and Sonia was pulling all the strings from behind! No one voted for MMS in 1991 and in 2004 (though a lot of credit for Congress performance in 2009 goes to MMS).
What RRR said to Rahul would be told by anybody havign common sense whether having economics background or not and there was hardly anything out of the box about it. There is a broad consensus across the sections of business to middle to working classes on what Modi needs to do for the economy . But it is Modi who is not gathering political courage to do it. But it is also true that Modi alone can do it and no one else can!
My advice to Shivam is to become Prashant Kishore to Congress and continue to entertain us week after week wit his dream ideas!! .
PC has done fairly well as an FM. The problem with Congress was not lack of political direction, in fact, PC is very liberal, it’s its directionless politics in UPA2 and endless corruption. There was drift in every sphere. MMS would have done well if allowed to function. A person with all authority and no responsibility has ruined the country, and destroyed the Congress for ever. It should start working for the people than to serve the interests of some.
What nonsense man. It is something like promoting RR to the coveted post. But the writer as forgotten that RR is not Manmohan the silent G man guy. But Congress Party knows this. Now he is totally become an out dated & out of touch on the Indian Economy. He did nothing superficial Except blaming the system , a few of his co leagues & political Bosses.
Rather than working within the frame work of the policy & Balancing the act. He was adamant & arrogant with the Political Bosses & his colleagues. When GST was introduced the Industries & Business community & general public was so happy the media tom tomed as it is a big move towards the Indian Economy System & Congress shouted from the roof top it is their ideal etc., just for a few glitches now the media says its bad idea by quoting the examples of a few unorganized cash based sectors. Just because it killed the parallel economy the vested interests has spread a falls rumors. Any new system introduced generally have certain loopholes all the thing to do is plug this loophole & move on.
Indian Economy is a kind of weird economy what applies to the world the same principle will not work for our country. As mindset of the people is totally different. This one should understand. Plz do not promote his as a messiah. Manomohan sing is far, far better FM not PM. Late Narasimha Rao stood behind him firmly without listening to his critics & their own party men who were afraid of the erosion of their political base & support but he didnot care about it. If congress chief has extended same such kind of support country’s Economy was stabilized. But we all know how they act under their political adviser guidance, who benefitted by making crores & croses of bribe money under their nose, by making him as a scape goat.
Like any financial adviser he is among the one. Chicago is the better place for him. It is better RR should not carried away by this media write up & the attention. As for as India is concerned he is irrelevant now. May be a future consultant for CP not more not less.
Thanks
Nagesh Rao
What does the expression “Contributing Editor” mean? Commonsense says, whether Editor or not, everybody who is writing for the Print is contributing.!!!
This is perhaps one of the articles in a long time wherein the CE, Mr Vij has not abused “Brahmins”. But after going through this article one wonders whether “Freedom of Speech/Press” means anything when you abandon impartial journalism, become committed to a family and start believing that this family alone aided by publicity seeking Raghuram Rajan can convert India in to a heavenly state. Another self-appointed know all & free advice giver, Mr Amartya Sen has not been brought in. Is it an oversight?
Esteemed readers may go through what the Shivam Vij has written in the recent past and decide for themselves his credibility. He wants omlette to be made without breaking eggs.
– (25.03.2020) Modi’s poorly planned lockdown won’t save us from coronavirus, but will kill economy.
– (01.04.2020) The necessary, but horrendously implemented 21-day nationwide lockdown due to coronavirus has unmasked the BJP’s…The lockdown was necessary and it will no doubt slow the rate of infection, thus “flattening the curve”.
Both views in a gap of seven days are totally contradictory. He says, 21-day lockdown was horrendously implemented – how? He offers no explanation. Ever since GST was implemented, he has been calling it “badly implemented” without ever explaining how is it faulty and what should be done about it.
– (01.04.2020) With the anti-poor lockdown, BJP is back to its upper caste, middle class, urban roots. How? He offers no explanation.
When you read this kind of stuff, you feel scared at the thought of the kind of people who are now in the media.
Disclaimer – not loyal to any party.
This is more of congress propoganda than Rajan’ s talent . It’s not Manmohan Singh only who pulled India out of 1991 situation but the leadership of Narsimha Rao which writer conveniently skips to acknowledge . He does mention of Rahul Gandhi but let him not forget people of India are fully aware of his intelligence . Congress govt pulled the country out of poor state of economy because that time it was without Gandhi family at party helm . IfRajan had to do something good then Congress has to be free of Gandhi family
And pigs could fly….The obvious difference is that at that time Congress was in power and today it is not. Also those lionizing Monmaun Singh should be honest enough to acknowledge that the real reformer and visionary was PV Narasimha Rao, MMS was just a beurocrat who couldn’t have done anything without Sri PV Narasimha Rao. MMS is given all the credit because he was just a poodle of the fake Gandhi family who cannot bear to share credit.
Its very clear that Rahul G wants Raghuram rajan as his MMS,but India has moved away from these spent forces…who are dishonest don’t put all fscts correctly and hide all the muck they accumulated in the banking system under their watch…prescribe medicine to others…..the successor RBI governors have proved to be much more effective and much without ado .
Will Chidambaram allow Rajan to become MMS?? first this needs to be settled
The write up makes no sense. Manmohan Singh was never a reformer and his 10 years as PM more then proves it. MMS simply followed orders when he was FM under Narsimha Rao. India’s real reformist leaders were Narsimha Rao and A.B. Vajpayee. As for RR, he seems to have more style then substance. The other problem is that the moment somebody becomes PM, he transforms into a Communist like the present incumbent.
Theprint is biased and and not fair in reporting the story.i have not seen ever any report critical on government of India.
Always support the government.
Raghuram Rajan seems to like public limelight without the baggage that comes with being a politician ( he claims his wife does not want him in public life ) , now that is not a tenable position for an individual who wants to be some body in the scheme of things .Furthermore Sonia was super CM with Manmohan Singh , I cannot imagine a situation like that with Rahul & Rajan , all this conjecture is based of course on Congress willing to cede the limelight to somebody like Rajan . But the idea is fascinating , Modi vs Rajan .
Absolutely ridiculous! Simple question to author If at all he wish to see the feedback.. what finance reforms done by MMS between 2004 to 2014? Can some finance minister do the reforms without the PM support? Dont you see that MMS is merely a puppet in the hands of Sonia’s gandhi.. if you are a Congress supporter, you dont need to answer this question.. then I can understand..
Well we are in deep muck in India. Yes there is poverty and deprivation but the current ruling dispensation has the right political combination to stay in power. Hindutva, the great divide amongst the minorities and Dalits ensure BJP’s holding on to the power in the center and in bhimaru states
Mr Rajan is not in good books of BJP and also he has deep insights into the Gujarati Marwari business intererests. BJP will never favour him. I may sound a bit rude but MrShivam is an incorrigible optimist
To do what ? Scapegoat?
We both know Congress need a leader not another fall guy.
Congress need a overhaul maintenance
Manmohan Singh before becoming FM was RBI Governor and economic advisor, very powerful positions for shaping the economy. Why isnehe blamed for bringing about the precarious situation of 91 then? Whose fault was it that we reached that bleak point? Also, i remember clearly, that IMF arm twisted India to open up the economy and what we did then was just follow IMF’s instructions. Please don’t glorify Manmohan Singh’s achievements when none exist. Do we need a better FM today? Definitely yes. But it can’t be looked at from political lenses. Raghuram Rajan would be a disaster. I would prefer a classical economist who prefers free economy, more competition less PSU investment, higher disinvestments and higher government spending in Infra, primary education and healthcare. Do we have someone like that? I don’t know but a socialist as economist is nothing less than unmitigated disaster.
thnaks vij for canvassing rahul gandhi’s comeback using RR’s brand value. rahul is truly “chand ka tukda”
Do not give sole credit to manmohan singh. It was Narasimha rao who is the man behind India’s economic reforms. Secondly it was Manmohan singh during Indira Gandhi’s tenure was the father of Tax system in the country today, please check the you tube print of your editor in chief SG you ILLITERATE. Similarly donot give any credit to raghuram rajan. He is responsible for creating mallya, nirav modi and the present state of NPAs in the country. Being a journalist please do some research and ground work.
from where do you guys so much hasted for our PM? is everything auto industry only for you? what innovation has our auto industry done in past 10 years? even in 2 wheeler we rely on honda and in 4 wheeler on hyundai and now kia. maruti does not have a single matching vehicle in mid segment of 12-15 lacs. it is in paralysis by only making sub 6 lac vehicles. anyone who has bought a maruti will now aspire for something big.
and yes accept the fact that rahul gandhi is a loser and congress does not have a single able leader so want to import mr rajan. what a shame.
Sounds like a good idea. Dr Rajan has intelligence, ample qualifications and experience PLUS, a very unique advantage – – of “wisdom in hindsight”. He has had the FRONT SEAT VIEW of the Indian economy in all its recent turbulent period, even if it started from the UPA era, as Modi ministers never tire of accusing. Dr Rajan was the economic advisor for some years of second MMS government, plus he was the RBI Governor later. He would know EXACTLY WHERE THINGS WENT WRONG, and how to fix them. He would only need a boss in the shape of a wise PM who will listen to him, not like the present incumbent who is lost in an echo chamber.
Dr Singh had PM PVNR. Whom would Dr Rajan have ? The Congress is drowning in the economic orthodoxy of Mrs Gandhi, gently replenished by the younger Mrs Gandhi during her NAC days. There is zero appetite for the sort of reforms India needs. 1991 was a bold departure from all that had gone before it. Have you heard a single speech from RG which says the old ways do not lead to better times for all Indians. What is NYAY – have gone completely allergic to acronyms and alliteration now, especially in Sanskrit – except a simple money transfer. 2. Feel sad for India Inc now. They see the floodwaters swirling almost upto their nostrils but dare not utter a squeak. Something similar is happening to most of the media. See Karan Thapar’s interview with Justice Madan Lokur. Dr Rajan wants to be FM. He will do what he is told. Like PC, he will praise and defend the tattered economic philosophy of the Gandhi Congress. India does not need a man riding in on a white horse. A great nation whose potential and future is leaching away before our eyes.
The BJP Doesnot want any reform. MMS did nothing for 10 years, except signing on the dot. Economic reforms is most feared by rulers. Once, people havemore money, their choice will increase. They will not vote for the UPA or NDA. Our political climate is one of fear. No reforms will succeed under pressure.
Correct. Whether BJP or Congress it is a choice between economic leftists and believers in big government. MMS is no less a Communist then NM. So Indian voters have no choice. RR under RG will turn out to be an American Communist.
Wonderful ! I like RR. He’s best.
Manmohan singh was reluctant reformer. He did reforms in 1991 because had no choice. In his 10 years as PM did not do any bold economic reforms.
The same goes for congress . We do not need Harvard educated economists to tell what to do. Need political leaders who are willing to do radical economic reforms. Rahul Gandhi is certainly not that leader
So the Gandhi Family will “appoint” Mr. Rajan as the next PM of India for Pappu Ji and Italian Mommy Ji to pull his strings?
Dream on.
Mr. Rajan is definitely a top economist, but that doesn’t qualify him as automatic “choice” to lead India.
Stop the sycophantic garbage you pass off as journalism.
Egoist persons have no place in public life. When RR was the RBI head, he should not have left his position. Politics has no place in such important public positions. Why does he intervene in government policies now? Howso ever right he may be, he has lost his place upon resigning and preferring a foreign posting. What would be his integrity, when sides with the Opposition even now? Had he been independent at least now, it could have been a different story. Ambitions destroy one’s carrier. He has to wait for his opportunity now.
Dr. Raghuram Rajan : Could be excellent Finance Minister for India, but not for Bharat.
Economic Reforms of 1991 has lead to GDP Growth but did not focus on HDI as a result all growth confined to chosen few real estate. services and finance with inequality rising.
We need a governance of Kerala model which focuses on health and education and then on wealth generation.
Unless structural changes are brought in governance only ballooning growth will happen.
Dr. Rajan says that Rs.65000.00 crores needed for the poor; but he did not mention from the resources will come from. If he means through increase in fiscal defeceit, would it not mean consuming today at the expense of the future?
As Shekhar Gupta has pointed out earlier in one of his excellent “cut the clutter” videos, Dr. Singh gave us the 1991 liberalization and the Indira Gandhi Heavy Taxation policy, hence, we need to understand that Dr.Rajan alone may not be able to give the public what it needs, we need a Narsimha Rao who can handle the “swaraj” & “haridwar” economic propaganda. The political will is crucial to influence economic growth in the “right” direction and while Dr.Rajan will have the public support, politics is a whole different ball game. At a crucial time as this, its highly unlikely that Mr. Modi will lose support, we need to depend on markets & Industry to push the Govt. in this regard. We saw how the Economic Survey was totally ignored during the Budget, it is likely that Dr.Rajan may face the same treatment. About him entering politics, yes, the South is the key, as Dr. Tharoor has shown repeatedly. Dr.Tharoor has also shown as while Rahul vs Modi politics exists, you can have your own following from both the isles.