Former RBI Governor Raghuram Rajan spoke at the World Economic Forum summit in Davos, Switzerland.
Speaking on a range of issues from demonetisation, GST and current economic scenarios around the globe, Mr Rajan praised the work of his successor, current RBI Governer Urjit Patel. Mr Rajan said that six-member panel headed by Mr Patel, known as the Monetary Policy Committee, is doing a tremendous job in focussing on inflation. According to a report in Financial Express, Mr Rajan said that Demonetisation and GST were the two big headwinds that the Indian Economy had faced in the last year. Mr Rajan said the Indian Economy was held back slightly due to these two major reforms.
However, he was positive on the long-term impacts of GST and stressed that it will have very positive impact on the Indian Economy. He added further that it is important to bring necessary changes in the GST quickly and let it stabilise.
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Rajan emphasised on sharing and said that the western world would need the new emerging economies in order to go a long way. According to a report, he said that the majority population in western countries is ageing and they would need the population of the emerging world to sell their products.
Speaking at a session in the WEF on the broad topic of the power of economic narratives, he stressed that western policy makers would need to work on the main challenges of technology, the ageing population and climate change. He added that they will need to acknowledge the power of emerging world and start addressing these challenges soon.
Raghuram Rajan spoke to ET NOW at Davos:
He is currently Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago Booth School of Business. Earlier he had declined the Aam Aadmi Party’s offer of a Rajya Sabha nomination.