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LATEST NEWS UPDATES | Raghuram Rajan opens up on what's working and what's not working for India

Raghuram Rajan opens up on what's working and what's not working for India

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published Published on Jan 28, 2018   modified Modified on Jan 28, 2018
-The Economic Times

Just after Prime Minister Narendra Modi showcased a democratic and developing India to the global leaders at the annual meet of World Economic Forum at Davos in Switzerland, India's former RBI governor Raghuram Rajan punctured Modi's India pitch.

Modi said,"In India, 'Democracy, Demography and Dynamism' together are shaping the country's destiny and leading it towards the path of Devepolment." He also said, "Our Mantra is 'Reform, Perform And Transform."

However, Rajan did not agree. Speaking to ET Now, he doubted if the way the Modi government was functioning was really democratic. He said only a small clique was making all the decisions while bureaucrats were sidelined.

Talking of stalled infrastructure projects, Rajan said there was the need for political focus on implementation. "I worry that we are not getting decisions taken by the bureaucracy. Mr Jaitley has talked time and again about removing the impediments. For example, the fear that bureaucrats have being accused of corruption but why are we doing that? So, that is one set of issues -- decision making by the bureaucracy."

Rajan went on to question what he thought was an undemocratic way of running the country. "But we also have to ask whether things are getting too centralised and if we are trying to run the economy by a very small set of people and whether there is enough sort of capacity to manage what a $2.5 trillion economy needs," he said.

The spike in Indian markets is considered a sign of the economy doing well, but Rajan dismissed that as merely part of a global trend. When asked what was driving the rally in India stocks, he said, "Well, it is an across-the-globe phenomenon. Look at the Hong Kong market. We are not alone."

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The Economic Times, 27 January, 2018, https://economictimes.indiatimes.com/news/economy/policy/raghuram-rajan-opens-up-on-whats-working-and-whats-not-working-for-india/articleshow/62669946.cms


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