Raghuram Rajan: "Authoritarianism, Cronyism, Majoritarianism" Ailing Indian Economy
"Authoritarianism, Cronyism and Majoritarianism are identified as three dangers for India which may harm the economy in a long run", says economist and former Governor of the Reserve Bank of India, Dr Raghuram Rajan in an interaction with faculty and students of Brown University in the US.
Participating in a debate with former Chief Economic Adviser of India Dr Arvind Subramaniam, Rajan said that the 'software' to reboot Indian economy is corrupted by the political and social agenda of the Modi government. Speaking on the subject "Is Indian Economy Back?" at the Watson Institute, Dr Subramaniam gave a detailed presentation on the improving 'hardware' of the Indian economy in terms of increasing construction of railways and roads network, banking facilities, cashless transaction backbone UPI, constant foreign investments and a booming stock market as signs of revival in the economy.
Dr Rajan on the other hand concentrated on the 'software' of the country which was how economic and social policies are being carried out.
He said that a hyper centralised 'authoritarian' functioning is harming the relationships with the states which are the engines of the Indian economy. He pointed out the ongoing tussle over the distribution of the Goods and Services Tax between the states and the Centre as a hurdle for economic growth.
He said the 'Cronyism' in terms of trade barriers and tariffs being imposed both internally and externally are harming the trade significantly where India is now out of larger trade groups in the world. On 'majoritarianism' he underlined that what is happening in Kashmir after the imposition of the central rule and alienation of minorities across the country may lead to economic instability warding of foreign investments and trust in the Indian governance.