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  1. Modi can do better, indicate Raghuram Rajan’s recent comments

Modi can do better, indicate Raghuram Rajan’s recent comments

Raghuram Rajan, the former RBI governor, has said that 7.5% growth rate is not enough for employing 12 million people in the country.

By: | Updated: March 21, 2018 3:42 PM
Raghuram Rajan says 7.5% not enough for 12 million jobs Raghuram Rajan said that India has the potential to grow at 10%, but that would require a lot of work.(Image: IE)

Raghuram Rajan, the former RBI governor known for his candid personality that continues to make him quite popular in India even after leaving the office in 2016, has said that 7.5% growth rate is not enough for employing 12 million people in the country. He said that India has the potential to grow at 10%, but that would require a lot of work.

The recent comments by Raghuram Rajan in an interview with CNBC-TV18, in short, transpires to the fact that Narendra Modi can do better. He said that reforms in India are happening but more slowly than one would wish. “We can move up to maybe 10%, provide some kind of source of demand for the work,” he said in the interview.

Here are top comments from Raghuram Rajan’s latest interview:

Election mode on; reforms likely gone!

“Reforms are likely to be put on the shelf until the next general elections,” Raghuram Rajan said. India is entering into a poll-bound financial year and it is a popular belief that with the impending General Election in 2019, there would be fewer reforms and more populist measures.

7.5% growth good but not enough for good jobs

“India’s 7.5% growth will not be able to create good jobs for the 12 million people coming into the labour market every year,” he said. India had slumped to a three year low of 5.7% in the first quarter of FY18, but disruptions caused by demonetisation and the implementation of the GST are phasing out and India is expected to grow to 7.5% in next two years. But Raghuram Rajan has said it is not good enough. The World Bank also noted the same in a half-yearly report on India’s growth.

Pace matters!

Raghuram Rajan said that reforms in India are happening at a slow pace. Even as India is entering into the poll mode, and that reforms will be put on the shelf until the next election, he said that if India accelerates its pace of reform, there’s no reason why in two or three years higher plane of growth could not be achieved.

India, China – not same

The former RBI governor said that China’s economic growth boom on the back of its manufacturing industry and cheaper goods cannot be replicated in India. He said that world has become less receptive to exports, and asked that even if India becomes a manufacturing giant overnight, who’s going to buy its stuff?

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  1. Balasubramanian Vedagiri
    Mar 24, 2018 at 7:23 pm
    Self imposing media attention seeking booth!,next congress candidate from odisha for sure!
    Reply
    1. Sanjay Narain Saigal
      Mar 23, 2018 at 8:59 am
      Raghu Ram Rajan' was Chief Economic advisor to Govt of India from 2008 to 2013 Guv of RBI 2013 onwards.i hold him subbarao RBI GUV 2008-2013 responsible for this UPA banking scam . Even after UPA Thives we're thrown out by indian public Rajan didn't do anything to bring the fraud to light or to recover NPA'S.
      Reply
      1. Sanjay Narain Saigal
        Mar 23, 2018 at 8:46 am
        Vijay Malya, Jatin Mehta, Neerav Modi, Mehul Chouksi, Vikram Kothari, thousands other loans sanctioned disbursed during Mr Raghu Ram Rajan's tenure have become bad Debts ( NPA's) totalling ~10lac crores. This man is responsible for chain of bigges Bankingt fraud between 2007-2014, in probably world history
        Reply
        1. Shakthi Vel
          Mar 23, 2018 at 8:22 am
          yes sir ..u r absolutly right ....
          Reply
          1. J M Jeyaraj Jeyaraj
            Mar 22, 2018 at 4:55 am
            Manufacturing for China Service sector for India Arms for the west. Who can save better and Invest in the right segment in the respective region would be the winner of the future. India should invest in arms company of the west not and invest in manufacturing company of China and not from China and that would be winning formula of future.
            Reply
            1. Sanjay Narain Saigal
              Mar 23, 2018 at 8:40 am
              Invest in manufacturing of products where we have traditional advantage /or volumes /or where we can add better value. Every second had been predicting doom ever since Chinese started on it's manufacturing journey. Government should create a great ecosystem that's it
              Reply
            2. Mohammed Salahudeen
              Mar 21, 2018 at 5:54 pm
              This government has an exceptional advantage of absolute majority after 25 years of coalition rule. Such an advantage not an easy one.
              Reply
              1. Sanjib Bandyopadhyay
                Mar 21, 2018 at 5:13 pm
                Introductory notes on Mr. Rajan in the article suggests something wrong with him, since as ex Guv. of RBI, he needs no introduction.. It is mysterious, why, without being asked, does he make comment on Indian economy. His tenure should be probed. It is now seen, some high post holders during UPA regime become vocal before some scam become visible.
                Reply
                1. Sanjay Narain Saigal
                  Mar 23, 2018 at 9:00 am
                  True
                  Reply
                2. Ramesh Mahalingam
                  Mar 21, 2018 at 2:46 pm
                  raghuram rajan is not fit to talk about these matters. he has done mischief by giving approvals to nirav modi when he knows very well that there is a change of govt. his lack of supervisory skills and wrong direction has led to banks losing money. he is fit for talking , not for real work. along with p.chidambaram, he is responsbile for a lot of financial mess in the RBI. HE HAS NO BUSINESS TO ADVICE MR. MODI. WHATEVER TRUST MR. MODI HAS BESTOWED UPON HIM, HE BETRAYED. IT IS TIME, HE SHOULD BE QUESTIONED AND IT IS TIME, HE SHOULD STOP HIS SERMONS. --RAMESH MAHALINGAM
                  Reply
                  1. முரளி கே
                    Mar 21, 2018 at 5:41 pm
                    Don't utter nonsense. Don't talk about things you don't understand.
                    Reply
                    1. Jimmy Lobo
                      Mar 22, 2018 at 6:33 am
                      HE IS AN INDIAN
                      Reply
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