He has been one of the proficient economists India has seen who played a crucial role in bringing key reforms in the country. However, his fight against crony capitalism and the politics against him left him helpless forcing him to leave his post.
Raghuram Rajan, the 23rd Governor of the Reserve Bank of India currently working as Service Professor of Finance at the University of Chicago Booth School of Business made some interesting urges to Prime Minister Narendra Modi. The Indian economist in an open letter to the PM appealed the government to prioritize spending on the poor and warned that bad loans could rise due to the coronavirus pandemic.
Warning the government of a bigger war, Raghuram Rajan questioned if the country’s finance ministry and PMO is ready for the post-Corona menace. Calling it the greatest emergency since Independence, the former RBI Governor expressed his discontent over everything running around political parties.
“The global financial crisis in 2008-’09 was a massive demand shock, but our workers could still go to work, our firms were coming off years of strong growth, our financial system was largely sound, and our government finances were healthy. None of this is true today as we fight the coronavirus pandemic,” he said in a blog posted on his LinkedIn page.
However, the renowned economist asserted that with the right resolve and priorities and drawing on India’s many sources of strength, the government can beat the prevailing situations. “Government should have a plan for what happens next after the lockdown. The government should take the support of people with proven expertise and capabilities to manage the situation,” he averred.