Former RBI Governor Raghuram Rajan said Indians’ belief in the country’s economic future had waned in recent years due to the COVID-19 pandemic. He added that the pandemic had weighed on their sentiment and pushed several middle-class citizens into poverty. On Friday, he was virtually addressing an event hosted by NALSAR Law University.
The former RBI chief added that the booming stock market does not reflect the reality that many Indians are in distress. “In recent years we’ve become a little less confident. Our belief in the economic future has waned…,” he said.
The central bank had lowered the country’s growth projection for the current fiscal year to 9.5 percent from its previous estimate of 10.5 percent. The International Monetary Fund forecasts growth of 9.5% in 2021 and 8.5% the following year.
Rajan said the goal of economic programs should be to create jobs, instead states are increasingly reserving jobs for locals.
“As our economic performance diminishes, our democratic credentials, our willingness to debate, respect and tolerate differences are also taking a hit, not only in the Center but in many states. You know that the feeling of community is very strong. easily injured, ”he said. .
Rajan, currently a professor at the Booth School of Business at the University of Chicago, noted that any attempt to reduce a large portion of a country’s population is morally wrong. “Growth that does not bring everyone on board is unsustainable,” observed the eminent economist. He also stressed the need to protect fundamental rights in all circumstances, saying: “When we suppress debate and criticism, it leads to bad, unenlightened and uniform policy choices, with few course corrections. “
(With PTI entries)