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If Raghuram Rajan were India’s Finance Minister: Former RBI Governor lists 3 top priorities

FE Online

Raghuram Rajan has been credited with taking some bold decisions on the NPA-front as the RBI Governor. Even though not holding any government office in India currently, the globally renowned economist still has ideas in the mind to improve the fiscal health of the economy. In an interview with CNBC VT18, the Booth School professor highlighted the three top priorities if he were the finance minister of the country.

Rajan s focus areas are: solving issues of land acquisition, focusing on bank cleanup and coming up with policies to revive agriculture.

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“Certainly I would focus on short-term actions that could put a lot of projects back on track that are still stuck, clean up the banks as quickly as possible and set them back on credit growth, some of which is happening and try and find two or three key reforms which could unleash growth,” Raghuram Rajan said.

Land acquisition, bank cleanup as well as trying to find some key policies that would revive agriculture, these would be top priorities,” he added.

On debate around India s data, the former RBI top boss said that he has no idea about where the statistical data stand currently. There is a possibility that India is not growing at 7 per cent, he said, adding there s a need for an impartial body to look at data in India.

The country needs better confidencer in the country s GDP numbers, he added.

Meanwhile, recently 108 economists wrote a letter claiming that government interference is harming the credibility of the data. In a reply, a group of chartered accountants also shot back a letter defending the data.