Let India grow at 8-10% for 10 years before chest thumping:Raghuram Rajan
NEW DELHI: With India trailing China on economic growth postdemonetisation, former RBI governor Raghuram Rajan has said thegovernment should not have done "chest-thumping" on being thefastest-growing economy without achieving very strong GDP expansionfor 10 years.
In an interview to PTI, he said India can lecture the world onthings such as culture and history, but on growth, it should dothat only after achieving 8-10 per cent rate for 10 years.
Rajan, the only central bank governor in two decades who didnot get a second term, courted controversy when in April last yearhe had called rising India a one-eyed king in the land of blind.BJP Rajya Sabha member Subramanian Swamy had then called for hissacking, saying he was "mentally not fully Indian".
Refusing to comment on Swamy's remarks, Rajan said his commentwas taken out of context.
"Not that I was forecasting anything, I was merely saying wehave to be a little cautious about being too bullish aboutourselves. That remark was made in April 2016, every quarter sincethen, our growth has fallen. So, I would argue in hindsight, and Ididn't have any reason to believe that would be the case, butcaution was warranted," he maintained.
India's GDP growth slowed to 5.7 per cent in April-June thisyear, down from 6.1 per cent in preceding three months. Chinaclocked 6.5 per cent growth rate in both the quarters.
Rajan, who had predicted the 2008 global financial crisis,said Indian economy still is very small at USD 2.5 trillion, but"we feel we are a big country."
China is five times India's size.
Stating that India and China are not paired anymore, he saidin order to be paired, China has to slow down and India has to growat a rapid pace for the next 10 years.
N S-T-1 day ago
Rajan is correct in suggesting not to compare China withIndia. Size of Chinese economy is far greater than that of India. Aconsistent 8% growth for feww years is needed. The transformationstarted in the NDA''s first phase with concentration on infrastructure and road. This followed by IT evolution helped the nationduring the past decade. The current focus on transparency andindustrial growth can facilitate that target. Yet, the corruptionand damage caused through illegal and over exploitation of thesystem all these years need to be set right first.
Mpraomokkapati-India-1 day ago
Let Rajan tell which opposition leader is capable to get Indiagrow at 8-10% for 10 years ?.Already India lost 70 years , for wantof a good leader like Modi.
Sushil Kumar-1 day ago
As sn economist he is much much better equipped to predict oureconomic development at any point of time. It is better to learvsomething from him instead cretisizing him
Mukul-1 day ago
Mr Rajan thanks for your invaluable advice. People like youshould stay where you are. In difficult times you run away aftertaking education here and then give Godly advises. You didn't speaka word when UPA was looting the country and NPA of the banks wereblowing past the rooftops. Now you seem to be concerned more???
Mpraomokkapati-India-1 day ago
Let Rajan talk as a banker and not as a opposition leader.
Sudipto Mukherjee-1 day ago
Which country has achieved 8 - 10% for 10 years, Mr Rajan? Weunderstand you did not get a second term, but that should not causeyou to make such outlandish statements.
Narayana Chandra Mouli-1 day ago
Raghuram Rajan sir, did you advice anything to Manmohan Singhsir led government and ideas to curb black money and fake currency?I have not yet read any of the books you have authored. If you havementioned in any of those books, do let us know so.
Nirmal-1 day ago
having A Governor like you of Apex Bank No Country can have 8to 10 Percent Growth.
Romi -mumbai-1 day ago
For a change agree with him
This government has to learn to work in peace instead ofmaking noises
Manu-1 day ago
Whatever people say, Rajan is a brilliant man and I admire himfor that.
Prakash Shah-Basking Ridge, New Jersey-1 day ago
I don''t think India has done any Chest thumping in regards togrowth rate so Rajan''s advise is out of place. The lower recentgrowth rates are due to Two major Long Term crucial reforms whenIndia took calculated Risks for the Long Term Benefit by pursuingDeMonetization and then the GST.
Sunil Malhotra-1 day ago
Brilliant man showing his frustration on not beingreappointed. What he is suggesting us a joke . Let him do what hedoes
Abhijit-1 day ago
Idiot! Is any country in the world growing at 8-10%? It is notpossible for India alone to isolatedly grow at the pace when noother country is growing like that. Even Rajan knows in his heartthat it is not possible. It is his way to get back at the Govt andto sell his book.
Govindarajan Venkitaraman-Singapore, Singapore-1 day ago
For the sake of selling his book he uses all such statementsto create a sales pitch. Nothing else. The media is happy as theyget one liners for their TRP ratings. Let us not waste time on thisperson, with so much ego that he knows it all.
NSNS Shen-New York-1 day ago
The guy is only venting his frustration because he was kickedout.
Shankarnarayan Sarma-18 hours ago
Mr Rajan should not talk just like an opposition. Talk on theterms of an economist.
Khagaraj Sommu-Timbuctoo-19 hours ago
It is said the fool is not satisfied ,if he is right ! He mustprove everybody wrong !
typsygypsy gypsytypsy-Gods Green Earth-1 day ago
... absolute chest thumping and tremendous media hype .. by2030 50% of the world''s illiterate would be in India !!!
Wideangle-1 day ago
Why didn't you set that goal before you became theGovernor?
brainuser69 with brain-1 day ago
There is no place for intelligent and capable people such asRajan and MMS in India. India is for cow m00t drinkers with dung inhead.