New Delhi: Former RBI governor Raghuram Rajan said that country’s economy is being run through extreme centralization of power in PMO.
Rajan said that the country is in the midst of a “growth recession” with signs of a deep malaise in the Indian economy.
He suggested that the central bank should recommend reforms to liberalise capital, land and labour markets, and spur investment as well as growth.
The former RBI governor wrote in a magazine: “To understand what has gone wrong, we need to start first with the centralized nature of the current government. Not just decision-making but also ideas and plans emanate from a small set of personalities around the Prime Minister and in the Prime Minister’s Office (PMO)”.
He said that the Modi government will be able to address the economic slowdown by acknowledging the problem in the first place.