Loan losses from the pandemic may be too huge for the government to pay, says a new paper authored by the former RBI governor and former RBI deputy governor.
The government's approach has been to throw money at the problem and mandate reform from above. The reform never happens, or it does not make a difference.
The reach and impact of influencers are so significant that even politicians such as Prime Minister Narendra Modi have recognised their value—the National Creators Award is proof.
Economists say there are weaknesses in India’s GDP data. But statisticians claim the accusations are based on flawed understanding, saying while GDP has problems, the economists are looking in the wrong places.
Coaching centres for Army aspirants in Jhunjhunu are shutting down due to plummeting admissions in the face of a lack of job guarantees under Agnipath Scheme.
Mr Yogendra: Messrs. Rajan and Acharya should have blamed Nehru too shouldn’t they ?
In other words, for every Modi made calamity and self-goal, the blame must be allocated to UPA 2, Congress, Nehru, Muslims, poor implementation, uncooperative states and so on.
Tell me Mr Yogendra: Just why the hell should the present government not be held to account for its gross mismanagement of the economy ? Is it blasphemous to criticise the pogromwala ?
What blinkered, blind bhakths like you who inhale and get high on Arnab Goswami’s hot air cannot accept is the fact that the economy bequeathed by Dr Manmohan Singh to the pogromwala was in relatively good shape. And despite the global financial crisis of 2008, the steady hands of Dr Singh – a trained economist to boot – ensured that India weathered that crisis admirably.
More importantly, your ilk has to grasp the fact that matters of economic policy are extremely complex and are best left to trained economists, The demonetisation débâcle proved that convincingly. PM Modi ignored the advice of the RBI and its qualified economists and preferred to listen to quacks like Baba Ramdev and Anil Bokil and demonetisation ensued. India’s informal sector is yet to recover from that self-goal and perhaps will take a generation to do so. The nation lost the rare chance to corner the market that the faltering Chinese manufacturing had lost. And none of the touted gains of demonetisation materialised, proving once again that chaiwala economics cannot be used to run a country.
Not that such rational arguments will convince bhakths like you who are members of the Modi cult…
Mr Yogendra: Messrs. Rajan and Acharya should have blamed Nehru too shouldn’t they ?
In other words, for every Modi made calamity and self-goal, the blame must be allocated to UPA 2, Congress, Nehru, Muslims, poor implementation, uncooperative states and so on.
Tell me Mr Yogendra: Just why the hell should the present government not be held to account for its gross mismanagement of the economy ? Is it blasphemous to criticise the pogromwala ?
What blinkered, blind bhakths like you who inhale and get high on Arnab Goswami’s hot cannot accept is the fact that the economy bequeathed by Dr Manmohan Singh to the pogromwala was in relatively good shape. And despite the global financial crisis of 2008, the steady hands of Dr Singh – a trained economist to boot – ensured that India weathered that crisis admirably.
More importantly, your ilk has to grasp the fact that matters of economic policy are extremely complex and are best left to trained economists, The demonetisation débâcle proved that convincingly. PM Modi ignored the advice of the RBI and its qualified economists and preferred to listen to quacks like Baba Ramdev and Anil Bokil and demonetisation ensued. India’s informal sector is yet to recover from that self-goal and perhaps will take a generation to do so. The nation lost the rare chance to corner the market that the faltering Chinese manufacturing had lost. And none of the touted gains of demonetisation materialised, proving once again that chaiwala economics cannot be used to run a country.
Not that such rational arguments will convince bhakths like you who are members of the Modi cult…
All this is made to remove the importance of government in the long run and make the political parties depend on private corporations for funds…which in effect transfers all the power to private corporations….which would make justice inaccessible to the common man….god save the nation’s democracy…
I fully agree with your outstanding comment Mr Rajesh.
But the paradox in India and even in many mature democracies like the USA is the fact that the common man votes for these demagogues.
For instance, many of Trump’s voters are white, blue collar workers who actually stand to lose heavily and quickly by voting for Trump. But Trump appeals to their identity as white Americans and garners their votes. I once saw a BBC interview with a miner and his wife who were dependent on drugs to the tune of $ 6000 per month. They received the medication free of charge thanks to Obamacare. But yet, they voted for Donald Trump, the very man who promised to ditch Obamacare ! When the reporter gently reminded this couple that they were signing their own death warrants, they nonetheless said that they did not regret voting for Trump as he was a patriot !
Democracy requires a public that holds its leaders accountable and not puts them on a pedestal to be worshipped as people seem to be doing in India. But alas, that is often not the case.
As the Greek philosopher Plato said:
“Democracy is the triumph of opinion over knowledge”
That applies to India under Modi.
They wants that the public sector banks should run as commercial banks earning profit independently without discharging social obligations inseminating the government policy. If so ,banks will be none other than pown brokers.Industries in India iis still has to acquire modernization to compete with world trade because present regulations are not friendly.They are incurring loss and not able to pay back banks barring few exceptions. Bereuocracy and corruption are impediment for development in the country.Though the government has involved in the functioning of bank to implement certain un fabulous scheme which ultimately went on failure for recurring loss to the banks, it cannot assume its independence without discharging social obligations to the poor.Government should have recapitalise banks to compensate the loss on implementation of social obligations then and there,but it did not as the government changes on every five years in the States and Centre.This was the reasons for the poor performance of public sector banks.Above all theoretical people with so many degrees should not head the bank , but by the practical people well experienced in the field of banking.
There is enough money with the banking sector. What about the lavish interiors in the bank branches. The heavy salaries paid to their staff. From where does all these money come from. There are so many co operative banks which were closed down, where lakhs of clients have lost their crores of rupees. Many senior citizens are running from pilar to post for their hard earned money. What has the goverment done for them. The present government is a total failure in all it’s policies implemented till now. The demonetization, the GST and now the way covid situation is handled, has reversed the economy decades back.
Out of all the ex-RBI governors, Raghuram Rajan only knows everything right about Indian economy. I dont know what problems he solved when he was on the job.
Looks like another attempt by the academically acclaimed but otherwise politically notorious economists duo to fish in troubled waters! There is nothing new in what is being suggested nor there is any dearth of knowledge on this issue. But it seems they need to remain in the news in India; probably it miht help during the next call from Rahul !
Banking reforms need strong political will on the part of Modi and somehow he is not able to bring it on the table. There is nothing beyond this on this topic. Certainly there is no economics, worthy of Ivy League professors!!
Mr Surendra Barsode: Mind boggling that an academic research paper from renowned economists is something you prefer to pooh-pooh. Is it because the pracharak, the BJP IT Cell, Whatsapp University and Arnab Goswami told you something else right ? Or were you told that Nehru at fault?
And when one of the pracharak’s own financiers viz. Anil Ambani is a wilful defaulter to banks and capsizes banks like YES Bank through his own NPAs, your talk of banking reforms from Modi is a sick joke.
Pathetic Mr Barsode.
The govt must sell off the banks. With covid, the revenues have been hit badly and therefore recapitalisation doesn’t seem possible. Moreover a demand based stimulus is needed by pooling in every penny the govt can get. The govt should keep SBI and put the rest for sale lock, stock and barrel.
they are willing to let go of all but 5-6 but that had resistance. Certainly dont want bank employees on street right now.
Who will buy ?
Its like Air India 🙂 or BSNL 🙂
There is nothing to scrape off from the bottom of the barrel Mr Harsha. And besides, who wants to buy the poisoned pills of Indian public sector assets? When the biggest defaulters of the banks such as Anil Ambani have the backing of Modi and the BJP, you wouldn’t be able to get back your loans from him would you ?
Jab mall hi khatam to R.B.I ka power se kaya matlab ??
Mr.RAGHU LOOKS PRESENT GOVT EFFORTS HALF EMPTY, HE HAS NO COMMENTS FOR UPA 1&2 period
Mr Yogendra: Messrs. Rajan and Acharya should have blamed Nehru too shouldn’t they ?
In other words, for every Modi made calamity and self-goal, the blame must be allocated to UPA 2, Congress, Nehru, Muslims, poor implementation, uncooperative states and so on.
Tell me Mr Yogendra: Just why the hell should the present government not be held to account for its gross mismanagement of the economy ? Is it blasphemous to criticise the pogromwala ?
What blinkered, blind bhakths like you who inhale and get high on Arnab Goswami’s hot air cannot accept is the fact that the economy bequeathed by Dr Manmohan Singh to the pogromwala was in relatively good shape. And despite the global financial crisis of 2008, the steady hands of Dr Singh – a trained economist to boot – ensured that India weathered that crisis admirably.
More importantly, your ilk has to grasp the fact that matters of economic policy are extremely complex and are best left to trained economists, The demonetisation débâcle proved that convincingly. PM Modi ignored the advice of the RBI and its qualified economists and preferred to listen to quacks like Baba Ramdev and Anil Bokil and demonetisation ensued. India’s informal sector is yet to recover from that self-goal and perhaps will take a generation to do so. The nation lost the rare chance to corner the market that the faltering Chinese manufacturing had lost. And none of the touted gains of demonetisation materialised, proving once again that chaiwala economics cannot be used to run a country.
Not that such rational arguments will convince bhakths like you who are members of the Modi cult…
Mr Yogendra: Messrs. Rajan and Acharya should have blamed Nehru too shouldn’t they ?
In other words, for every Modi made calamity and self-goal, the blame must be allocated to UPA 2, Congress, Nehru, Muslims, poor implementation, uncooperative states and so on.
Tell me Mr Yogendra: Just why the hell should the present government not be held to account for its gross mismanagement of the economy ? Is it blasphemous to criticise the pogromwala ?
What blinkered, blind bhakths like you who inhale and get high on Arnab Goswami’s hot cannot accept is the fact that the economy bequeathed by Dr Manmohan Singh to the pogromwala was in relatively good shape. And despite the global financial crisis of 2008, the steady hands of Dr Singh – a trained economist to boot – ensured that India weathered that crisis admirably.
More importantly, your ilk has to grasp the fact that matters of economic policy are extremely complex and are best left to trained economists, The demonetisation débâcle proved that convincingly. PM Modi ignored the advice of the RBI and its qualified economists and preferred to listen to quacks like Baba Ramdev and Anil Bokil and demonetisation ensued. India’s informal sector is yet to recover from that self-goal and perhaps will take a generation to do so. The nation lost the rare chance to corner the market that the faltering Chinese manufacturing had lost. And none of the touted gains of demonetisation materialised, proving once again that chaiwala economics cannot be used to run a country.
Not that such rational arguments will convince bhakths like you who are members of the Modi cult…
All this is made to remove the importance of government in the long run and make the political parties depend on private corporations for funds…which in effect transfers all the power to private corporations….which would make justice inaccessible to the common man….god save the nation’s democracy…
I fully agree with your outstanding comment Mr Rajesh.
But the paradox in India and even in many mature democracies like the USA is the fact that the common man votes for these demagogues.
For instance, many of Trump’s voters are white, blue collar workers who actually stand to lose heavily and quickly by voting for Trump. But Trump appeals to their identity as white Americans and garners their votes. I once saw a BBC interview with a miner and his wife who were dependent on drugs to the tune of $ 6000 per month. They received the medication free of charge thanks to Obamacare. But yet, they voted for Donald Trump, the very man who promised to ditch Obamacare ! When the reporter gently reminded this couple that they were signing their own death warrants, they nonetheless said that they did not regret voting for Trump as he was a patriot !
Democracy requires a public that holds its leaders accountable and not puts them on a pedestal to be worshipped as people seem to be doing in India. But alas, that is often not the case.
As the Greek philosopher Plato said:
“Democracy is the triumph of opinion over knowledge”
That applies to India under Modi.
They wants that the public sector banks should run as commercial banks earning profit independently without discharging social obligations inseminating the government policy. If so ,banks will be none other than pown brokers.Industries in India iis still has to acquire modernization to compete with world trade because present regulations are not friendly.They are incurring loss and not able to pay back banks barring few exceptions. Bereuocracy and corruption are impediment for development in the country.Though the government has involved in the functioning of bank to implement certain un fabulous scheme which ultimately went on failure for recurring loss to the banks, it cannot assume its independence without discharging social obligations to the poor.Government should have recapitalise banks to compensate the loss on implementation of social obligations then and there,but it did not as the government changes on every five years in the States and Centre.This was the reasons for the poor performance of public sector banks.Above all theoretical people with so many degrees should not head the bank , but by the practical people well experienced in the field of banking.
Total failure on the part of the Government.
There is enough money with the banking sector. What about the lavish interiors in the bank branches. The heavy salaries paid to their staff. From where does all these money come from. There are so many co operative banks which were closed down, where lakhs of clients have lost their crores of rupees. Many senior citizens are running from pilar to post for their hard earned money. What has the goverment done for them. The present government is a total failure in all it’s policies implemented till now. The demonetization, the GST and now the way covid situation is handled, has reversed the economy decades back.
Out of all the ex-RBI governors, Raghuram Rajan only knows everything right about Indian economy. I dont know what problems he solved when he was on the job.
Looks like another attempt by the academically acclaimed but otherwise politically notorious economists duo to fish in troubled waters! There is nothing new in what is being suggested nor there is any dearth of knowledge on this issue. But it seems they need to remain in the news in India; probably it miht help during the next call from Rahul !
Banking reforms need strong political will on the part of Modi and somehow he is not able to bring it on the table. There is nothing beyond this on this topic. Certainly there is no economics, worthy of Ivy League professors!!
Mr Surendra Barsode: Mind boggling that an academic research paper from renowned economists is something you prefer to pooh-pooh. Is it because the pracharak, the BJP IT Cell, Whatsapp University and Arnab Goswami told you something else right ? Or were you told that Nehru at fault?
And when one of the pracharak’s own financiers viz. Anil Ambani is a wilful defaulter to banks and capsizes banks like YES Bank through his own NPAs, your talk of banking reforms from Modi is a sick joke.
Pathetic Mr Barsode.
The govt must sell off the banks. With covid, the revenues have been hit badly and therefore recapitalisation doesn’t seem possible. Moreover a demand based stimulus is needed by pooling in every penny the govt can get. The govt should keep SBI and put the rest for sale lock, stock and barrel.
they are willing to let go of all but 5-6 but that had resistance. Certainly dont want bank employees on street right now.
Who will buy ?
Its like Air India 🙂 or BSNL 🙂
There is nothing to scrape off from the bottom of the barrel Mr Harsha. And besides, who wants to buy the poisoned pills of Indian public sector assets? When the biggest defaulters of the banks such as Anil Ambani have the backing of Modi and the BJP, you wouldn’t be able to get back your loans from him would you ?