Indian belief in the country’s economic future has waned, Rajan says

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Indian belief in the country’s economic future has waned in recent years, with the COVID-19 pandemic further impacting sentiment while pushing many middle-class citizens into poverty, the former governor said. from RBI Raghuram Rajan.

Practically speaking to an event hosted by NALSAR Law University, Rajan further said that the national stock market is booming, but this does not reflect the reality that many Indians are in great distress.

“In recent years we’ve become a little less confident. Our belief in the economic future has waned…” he said.

The Reserve Bank of India (RBI) has lowered the growth projection for the current fiscal year to 9.5%, from 10.5% previously estimated, while the IMF has forecast growth of 9.5% in 2021 and 8.5% next year. .

Rajan added that the goal of economic programs should be to create good jobs, while lamenting that states are reserving more and more jobs for locals, undermining the idea of ​​India.

“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. .

He also stressed the need for India to adhere to international trade agreements.

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.

“A growth that does not involve everyone, it is unsustainable”, observed the eminent economist.

Rajan also stressed the need to protect fundamental rights at all times, saying, “When we suppress debate and criticism, it leads to poor, unenlightened and uniform policy choices, with few course corrections.

(This story was not edited by Business Standard staff and is auto-generated from a syndicated feed.)

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