Raghuram Rajan Advocates for Enhanced Indian Trade and Manufacturing Through Foreign Monetary Policy

Raghuram Rajan's Insights on India's Economic Future

Former RBI Governor Raghuram Rajan has been vocal about enhancing Indian trade through effective foreign monetary policy. During his interview with PTI, he expressed the necessity of amplifying local manufacturing and job creation as pivotal elements for economic growth.

Evaluating the 'Make in India' Initiative

Rajan lauded the government's focus on production, stating, "The intention behind 'Make in India' is commendable. We've made notable strides in infrastructure, yet there’s more to accomplish." He believes utilizing feedback from critics is essential for refining strategies to bolster the initiative's success.

Ease of Doing Business and Government Reforms

• Rajan emphasizes the importance of easing government policies to promote business environments.
• Changes include reducing fears of inspections and simplifying compliance.
• He argues that critiques of policies should be taken seriously rather than dismissed.

Future Economic Targets and Perspectives

Considering India’s goal of becoming a developed nation by 2047, Rajan raised doubts about achieving the necessary per capita GDP growth. “To reach a per capita GDP of USD 15,000 by 2047, we need to reassess our growth strategy,” Rajan remarked.

Coalition Government and Reform Necessities

Concerning the current coalition government, Rajan believes it may foster greater consensus on reforms. He pointed out that former Prime Minister PV Narasimha Rao's coalition was notably reformative, suggesting that a similar approach could benefit today’s governance if agility and sensitivity are prioritized.

Final Thoughts on Educational Reforms

Rajan identifies the need for educational reform as critical for the Modi government's agenda in its third term, stating that a solid foundation in education is necessary for sustained economic growth.