The reason for the downturn in the economy is Narendra Modi. All decisions are taken by PM: Rajan

(PTI) New Delhi, Ta. December 8, 2019, Sunday

Former Reserve Bank of India (RBI) Governor Raghuram Rajan was quick to dismiss the central government over the slowdown in the country's economy. He said that the country is going through a recession and there are signs that the economy is suffering from a severe recession. The root cause of the economy is to be managed by the Prime Minister's Office (PMO).

In the Modi government's time, the PMO has become more powerful and the ministers have no authority. As a result, the country is in trouble. Raghuram Rajan, in a leaflet written in the leaflet, has discussed ways to solve the problems in the economy.

Raj has called for liberalizing capitalization rules, improving land and labor markets, and promoting investment and growth. He urged the government to be involved in free trade agreements to promote competition and improve domestic capacity.

Raghuram told Rajan that we need to understand where the mistake was. We need to understand the centralization of power in the present government. Not only decisions, but also decisions about ideas and plans are taken by some people close to the Prime Minister and the PMO.

The former RBI governor wrote that this is true for the political and social agenda of the party, but such people do not know how the economy works at the central level, apart from the state level. Thus, economic reform does not work.

Raghuram Rajan praised the governments of the UPA and beyond, saying that the coalition of the previous governments would be lazy, but he chose to constantly take the economic system on the path of liberalization.

In addition to the power loss of ministers in the present government, the over-centralization and lack of perspective also ensures that the process of reform efforts goes ahead if the PMO wishes.

Hindu nationalism will increase social tension

Build big schools of religious-national heroes: Rajan

Former Governor of the Reserve Bank of India Raghuram Rajan advised the government that more modern schools and universities need to be built in India instead of making big statues of national and religious heroes. Commenting on the socio-political agenda of the Modi government, Rajan said that instead of creating huge images of national or religious heroes, more and more modern schools and international level universities need to be created in India. In these educational institutions the children will develop mentally, they will be more tolerant and respectful of each other. Hindu nationalism in India will not only create social tension.