Raghuram Rajan has never hesitated while speaking his mind. While there were times when he differed from the government’s approach on certain matters, there have also been occasions when he came out to support government’s move, striking a fine balance.
STILL TO GET TO A PLACE WHERE WE FEEL SATISFIED
Tolerance can take offense out of debate
Tolerance means not being so insecure about one’s ideas that one cannot subject them to challenge — it implies a degree of detachment that is necessary for mature debate… Tolerance can take the offense out of debate, and indeed instil respect… Tolerance and respect then lead to a good equilibrium where they reinforce each other….
(Speech at IIT Delhi, October 31, 2015)
Strong governments may not move in the right direction
No matter how thuggish or arbitrary the government in a tin-pot dictatorship, these are weak governments, not strong ones… Strong governments may not, however, move in the right direction. Hitler provided Germany with extremely effective administration — the trains ran on time, as did the trains during our own Emergency in 1975-77. His was a strong government, but Hitler took Germany efficiently and determinedly on a path to ruin..…
(Speech at Kosambi Ideas Festival in Goa on February 20, 2015)
In the land of the blind, the one-eyed man is king
We’ve still to get to a place where we feel satisfied. “In the land of the blind, the one-eyed man is king.” We’re a little bit that way. We feel things are turning to the point where we could achieve what we believe is our medium-run growth potential. Because things are falling into place. Investment is starting to pick up strongly. We have a fair degree of macro-stability. Of course, not immune to every shock.
Interview to Marketwatch in Washington at the Spring Meetings of the World Bank and the IMF and the G20 Meeting of Central Bank Governors, April 16, 2016
SIGNIFICANT REFORMS HAVE TAKEN PLACE
Govt working to revive growth
The government has embarked on ambitious structural reforms to revive growth, including significant efforts in the agricultural sector to boost productivity through irrigation, insurance, and access to markets, a strong push to deregulate business, especially for start-ups, important efforts to improve the governance of public sector banks and to resolve distress in power distribution companies, and an immense effort to expand financial services to the excluded through the provision of bank accounts and of direct benefit transfers. While the eyes of the world have been on the much anticipated Goods and Services Tax reform, a number of other significant reforms have taken place, including the recent passage of the new Bankruptcy bill.
Speech on May 26, 2016 – at SAARCFINANCE Governors’ Symposium, Mumbai
Monetary reforms will stand out
“ Monetary reforms of this Government will stand out as one of its signal achievements.. the Government has been encouraging foreign investors to “Make in India”. One offshoot of this campaign has been a sizeable rise in foreign direct investment, the most stable sort of investment.
Speech on March 12, 2016 – at the First Ramnath Goenka Memorial Lecture, New Delhi
Govt clearing bottlenecks
The Government is taking direct action to clear bottlenecks and revive stalled stressed projects, and intends to support them with equity infusion through the National Investment and Infrastructure Fund. Private well-funded players are looking to buy assets, we have seen some promoters sell assets to raise money to pay banks …
Speech on February 11, 2016 – at CII’s first Banking Summit, Mumbai