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'Majoritarianism Leading India Down a Dark Path': Raghuram Rajan on 'Worrisome' State of Economy

File photo of former RBI Governor Raghuram Rajan. (Reuters)

File photo of former RBI Governor Raghuram Rajan. (Reuters)

The former RBI governor Raghuram Rajan said that economic slowdown had been spurred by 'ill-conceived' demonetisation and 'poorly executed GST'.

New Delhi: The Former Reserve Bank of India governor Raghuram Rajan didn't hold back his criticism as he called the economic situation in the country "worrisome" and majoritarianism is leading India down a "dark and uncertain path".

In the OP Jindal Lecture at Brown University on October 9, Rajan outlined the problems plaguing the Indian economy.

"India is losing its economic way, in part because it is centralising power without a persuasive economic vision. We risk wasting the demographic dividend,” news outlet The Print quoted him as saying. According to Rajan, the problem was spurred by "ill-conceived" demonetisation and "poorly executed GST". Another report in the Times of India quoted Rajan as saying that even while growth is slowing, the government is pushing its welfare programme "which gives it a lot of political capital among people".

He remained just as critical when he said the centralised structure in the Modi government was hindering economic progress. "...the government is extremely which puts a lot of pressure on the leadership, which does not have a consistent, articulated vision on how to achieve growth," were Rajan's resounding words.

Referring to the recent raids and arrests of Opposition leaders Rajan said that it is unclear why evaders are problematic only in opposition and not in members of the opposition who pledge allegiance to the ruling party.

"I do worry that the former finance minister has been held in jail without trial for over a month," the TOI report quoted him as saying.

first published:October 13, 2019, 08:01 IST