“The two successive shocks of demonetisation and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up,” he said delivering the second Bhattacharya Lectureship on the Future of India.
Dr. Rajan said a growth rate of seven per cent per year for 25 years is “very very strong” growth, but in some sense this has become the new Hindu rate of growth, which earlier used to be three-and-a-half per cent.
“The reality is that seven is not enough for the kind of people coming into the labour market and we need jobs for them, So, we need more and cannot be satisfied at this level,” he said.
If the above quoted is true and assuming if media is not faking news, then Ex-RBI Governor RRajan is stupid. Stupid to include GST as a break on growth without going into nuances. Stupid to say the following:
“What happened in 2017 is that even as the world picked up, India went down. That reflects the fact that these blows (demonetisation and GST) have really really been hard blows...Because of these headwinds we have been held back, he said.
While India’s growth is picking up again, there is the issue of oil prices, the economist noted referring to the huge reliance of India on import of oil for its energy needs.
With the oil prices going up, Dr. Rajan said things are going to be little tougher for the Indian economy, even though the country is recovering from the headwinds of demonetisation and initial hurdles in the implementation of the GST.
Coming to oil prices:
US crude oil posts longest losing streak in over 34 years, falling for 10th day
And the ex-RBI governor was not aware of this?
And the media article goes on to quote this:
An example of this is the quantum of decisions that requires the ascent of the Prime Minister’s Office, Rajan said as he highlighted the recent unveiling of the ‘Statue of Unity’ of Sardar Vallabhbhai Patel as an example of a massive project that required the approval of the PMO.
Again if the above quoted by media is true and not faking it., then Raghu Rajan to bring in Statue of Unity as an example of centralized decision making in PMO's office is very very stupid.