Former RBI governor Raghuram Rajan has said that slowdown in growth is due to the current government concentrating more on fulfilling its political and social agenda instead of paying attention to the economy.
Raghuram Rajan further added that India can still reverse its slowing economic growth by focusing on the key issues rather than social and political agendas.
On answering the question on what is the main hurdle in India’s growth which remains below potential, Rajan said, “It is a sad story, I think most recently, it is politics.”
In a recent interview Raghuram Rajan said, “Unfortunately the current Government after massive election win has focused more on fulfilling its political and social agenda rather than paying attention to economic growth.”
Rajan later commented, “Unfortunately, this drift has continued a pace of slowing growth, which has precipitated initially by some actions, the Government took such as the demonetisation and a poorly structured Goods and Services Tax (GST) reform.”
As per the official data, India’s GDP growth hit nearly a 7-year low of 4.7% in the December quarter.