- We're rebounding quite fast, especially in manufacturing: Raghuram Rajan"We are rebounding quite fast, especially in manufacturing. Tesla is being priced at many multiples of classic companies. A lot of damage has been done, which will show up in the medium term", says former RBI Governor Raghuram Rajan. Watch the full exclusive interview with Raghuram Rajan, Prof, Univ Of Chicago's Booth School and ET NOW’s Consulting Editor, Mythili Bhusnurmath.We're rebounding quite fast, especially in manufacturing: Raghuram Rajan
- Rahul Gandhi takes dig at Centre on banking plan for corporate housesCongress leader Rahul Gandhi on Tuesday took a sharp dig at the Centre on proposal to allow corporate houses to set up banks. This comes just a day after former Reserve Bank of India (RBI) governor Raghuram Rajan and ex-RBI deputy governor Viral Acharya termed the central bank working group's proposal as 'bombshell'.
- View: Punjab-Haryana’s top 200,000 farmers want to remain among the top 8 per cent of all earners in IndiaThe Punjab farmer has the lowest cost of production, about 75% of average for wheat, and 59% of all-India average for paddy. The yields are also higher, with the net result that the Punjab-Haryana large farmer (farm ownership over 4 ha) earns Rs 1.25 lakh a year per ha from cultivation of wheat and paddy.
- Privatise select PSU banks, dilute role of DFS: Raghuram Rajan"Re-privatization of select PSBs can then be undertaken as part of a carefully calibrated strategy, bringing in private investors who have both financial expertise as well as technological expertise; corporate houses must be kept from acquiring significant stakes, given their natural conflicts of interest," the paper said.
- Fall in GDP alarming; time for bureaucracy to take meaningful action: Raghuram Rajan"The sharp decline in economic growth should alarm us all. The 23.9 per cent contraction in India (and the numbers will probably be worse when we get estimates of the damage in the informal sector) compares with a drop of 12.4 per cent in Italy and 9.5 per cent in the United States, two of the most COVID-19-affected advanced countries,"Rajan wrote in a post.
- View: Direct cash transfer is not the vaccine for reviving GDP. It’s not even anti-viral remdesivirEconomists like Raghuram Rajan, Abhijit V Banerjee and Manmohan Singh, as well as politicians like P Chidambaram and Yogendra Yadav, have been advocating more cash be put in the hands of people. But they haven’t answered ‘How?’, ‘How much?’, and ‘At what cost?’ What is the magic fiscal deficit number appropriate for balancing the macro consequences of direct cash transfers (DCTs)?
- Countries fighting COVID-19 in decentralised manner doing better: Raghuram RajanCiting the example of Germany and South Korea, Rajan said that these countries have allocated resources at the centre but left the details to provinces. In case of India, he said, as a result of the nation-wide lockdown, which was imposed after four hours notice with effect from March 25, the regions which did not have coronavirus cases at that time suffered economically.
- 'Corporate houses in banking a bad idea': Rajan, Acharya slam RBI panel recommendationsFormer Reserve Bank of India (RBI) Governor Raghuram Rajan and his then deputy Viral Acharya have opposed the idea of allowing industrial houses to own bank licenses calling the move “disastrous”. Rajan and Acharya have argued that allowing corporate houses entry into the banking system could intensify the concentration of political and economic power in the hands of a few business houses.'Corporate houses in banking a bad idea': Rajan, Acharya slam RBI panel recommendations
- Raghuram Rajan raises concerns on India's GDP growth data, says numbers should alarm us allTerming the 23.9 per cent fall in the economic growth in June quarter alarming, former Reserve Bank Governor Raghuram Rajan has said bureaucracy should come out of complacency and take meaningful action. Emphasising on the importance of government relief or support in the given scenario, he pointed out that it is "meagre" so far.Raghuram Rajan raises concerns on India's GDP growth data, says numbers should alarm us all
- India needs to look beyond what rating agencies think, says ex-RBI governor Raghuram RajanThe Indian government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government's measures has been estimated at just about 1% of GDP. Several attribute the fiscal prudence to fear of a downgrade after Moody's cut India's rating and outlook in early June followed closely by a change in outlook from Fitch.
- Raghuram Rajan explains how to fix India's debt-laden banking system in the middle of Covid stormEven before the stalled infrastructure projects of previous regimes had been cleaned up, the current government pushed lending to small and medium firms. NPAs from this sector are now alarming and, in time-honoured fashion, may be pushed under the carpet. We must do better, and GoI may now have no option.
- US-China conflict to impair global trade which is vital for India's reopening: Raghuram RajanCautioning that there will be "deeply damaged firms" in the economy, Rajan said the post-pandemic recovery has to be accompanied by a process of repair. "There's going to be enormous bankruptcies in the United States certainly and quite possibly in Europe also as we repair the economy, reallocate resources, restructure capital structures," he said.
- Raghuram Rajan sounds a note of caution, says NPAs may see unprecedented rise in 6 months"The level of the NPAs is going to be unprecedented in six months from now if we really recognise the true level of NPAs...We are in trouble and sooner we recognise it, better it is because we really need to deal with the problem,” Rajan said during a session at the India Policy Forum 2020 organised by NCAER.
- Focusing on ratings is 'nuts', Raghuram Rajan wants India to do Covid-control first“In this environment, focusing on a credit rating is just nuts. Your credit rating just does not depend on your level of debt, it depends on how you are going to grow out of the debt. We cannot worry about spending. We certainly have to focus the spending but we have to repair the damage now,” Rajan said during an NCAER online conference .
- India needs Rs 65000 cr to help poor while combating Covid crisis: Raghuram RajanIn conversation with former Congress president Rahul Gandhi on the Covid-19 crisis and how India can win the pandemic as well as economic challenges, former RBI governor Raghuram Rajan talks about possible ways of revival in an unprecedented global crisis. Watch the excerpts of the conversation here.India needs Rs 65000 cr to help poor while combating Covid crisis: Raghuram Rajan
- Can't be in lockdown forever, have to focus both on lives and livelihoods: Raghuram RajanFormer Reserve Bank of India Governor Raghuram Rajan emphasized that India cannot be in lockdown for long, and will have to focus on livelihood along with lives. India extended a nationwide 21-day lockdown to May 3 from April 14 earlier in an effort to contain the spread of the coronavirus pandemic in the country; a move which is likely to hurt economic growth heavily and also risk the livelihood of many in the country.Can't be in lockdown forever, have to focus both on lives and livelihoods: Raghuram Rajan
- RBI is compromising on financial stability, need to recapitalise system, says Viral AcharyaFormer Dy Governor Viral Acharya returned to the New York University to teach in 2019, prematurely ending his term after a tussle with the government over the RBI’s autonomy. He, along with governor Urjit Patel and his predecessor Raghuram Rajan, cleaned up the banking system and introduced tough rules to ensure unscrupulous borrowers don’t game the system.
- What led to Urjit Patel's premature exit from the RBI? Inside his tell-all book“Instead of buttressing and future-proofing the gains thus far, an atmosphere to go easy on the pedal ensued. A case of our old failing of a premature pronouncement of victory, perhaps? Until then, for the most part, the finance minister and I were on the same page, with frequent conversations on enhancing the landmark legislation’s operational efficiency.''
- View: Bad bank not an optimum solution to mounting bad loan menace in IndiaThe objective of the bad bank is undoubtedly laudable. It however needs to be subjected to the test of realism and pragmatism. The then RBI governor Mr Raghuram Rajan felt that bad bank creates a moral hazard enabling banks to continue with their reckless lending practices.
- India needs to leverage farm sector performance to push growth: Ex-RBI Governor Subbarao"The rural economy is doing slightly better than the urban economy which is still grappling with COVID-19. Rural economy, which accounts for 65 per cent of population and 25 per cent of GDP, is actually proven to be a buffer because of expanded MGNREGA spending...," he said at a webinar organised by economic think tank NCAER.
- India in growth recession; extreme centralisation of power in PMO not good: Raghuram RajanThe starting point to address this slowdown will be for the Modi govt to acknowledge the problem, he said.
- India’s construction, property industries in trouble, says Raghuram RajanThe RBI should carry out an asset quality review of the NBFCs for their exposure to realty, infra.
- Former RBI governor Patel pens book on dealing with NPA issueTitled 'Overdraft: Saving the Indian Saver', the book focuses on the non-performing assets (NPAs) issue that has afflicted Indian banking in recent years, its causes and Patel's efforts as the RBI Governor in dealing with it.
- View: Constant interaction between society, State and market through communities is key for progressA dispassionate reader will find many common thoughts in Thengadi’s and Rajan’s ideas. Samaj, Sarkar and Bazar — society, State and market — have to work as per complementary needs of each other.
- Suppressing criticism bad for government: Former RBI Chief Raghuram RajanThe government would benefit from advice of experts and therefore suppressing criticism is bad, Rajan said.
- Raghuram Rajan ko gussa kyu aata hai (with apologies to Pinto)?Rajan stands in stark contrast with exemplary restraint shown by professional central bankers.
- India's fiscal deficit 'conceals' a lot, warns Raghuram RajanThe country's growth slumped to a six-year low of 5% in the April-June quarter.
- You cannot allow rating agencies to decide policy: P Chidambaram‘If need be, monetise part of the fiscal deficit, print money. There is a sovereign right’
- Calls for debt monetisation gain traction as COVID-19 cripples economyConservative monetary economist and former RBI chief Raghuram Rajan, over the weekend, has also pitched for monetising public debt and higher fiscal deficit in a ''measured'' manner to protect the economy and the poor and the vulnerable in these ''abnormal times''.
- Economic slowdown 'very worrisome', new set of reforms needed: Raghuram RajanRaghuram Rajan said "a fresh set of reforms" are now needed to boost the economy and growth rate.
- India lockdown day 37 wrap: Roundup of all the major developmentsVeteran Bollywood actor Rishi Kapoor passes away at a Mumbai hospital Thursday morning, after ailing for a while. Former RBI chief Raghuram Rajan says another round of coronavirus lockdown will be devastating for the Indian economy. US scientists hail a potential breakthrough in the fight against pandemic as trial shows patients responding to antiviral drug remdesivir. All this and more in Thursday's news wrap.India lockdown day 37 wrap: Roundup of all the major developments
- Lockdown, Day 37: Make-or-break May for IndiaCompared to other countries, India has been faring fairly well, with a slower doubling and lower mortality rate than the US, Italy, Spain, UK. As the May 3 deadline nears, the next month could be make-or-break for India's virus fight.
- What matters most is health of real economy, not fiscal deficit: RajanThe government has to think about a staggered restart to the economy, former RBI Guv said.
- Raghuram Rajan, Janet Yellen didn’t apply to replace Mark CarneyRajan was named second most likely to get the job in a survey by Bloomberg News.
- View: Why Raghuram Rajan is wrong about foreign currency debtA foreign currency denominated sovereign bond, issued in modest quantities would have a salutary effect on the external rating and pricing of the Indian sovereign credit risk, and a step in the right direction.
- Raghuram Rajan on NYAY: Needed for economic inclusionFormer RBI Governor, Raghuram Rajan while speaking with Supriya Shrinate of ET Now on Rahul Gandhi's proposed NYAY scheme announcement as a mechanism to provide cash support to the economic backward segment, says that it is a means to create mechanism for economic inclusion. He, however, adds that there needs to more initiatives and checks to make it a fiscally viable project.Raghuram Rajan on NYAY: Needed for economic inclusion
- Raghuram Rajan says he will return if there is an opportunity to be of useRaghuram Rajan said he is "very happy" where he is, but is open to opportunities.
- State-run banks should be freed of constraints: Raghuram RajanHe is also of the view that there is no guarantee that privatisation will be a panacea.
- Raghuram Rajan says capitalism is 'under serious threat'Rajan said he believes that capitalism is breaking down because it is not providing equal opportunities.
- Virus crisis is a chance for India to finally reform its economyThe lockdown is likely to result in recession, millions of job losses and possible starvation among the poor.
- View: How India can restart the economy after lockdownThe former RBI boss says what the country faces today is an economic emergency.
- Bad populism is the ‘road to serfdom’ for economies: Raghuram RajanRajan said populism done right can make capitalism work better for people, but that’s not always the outcome.
- Raghuram Rajan in the frame as UK contemplates a foreign central bank bossThe question is whether Brexit Britain is ready to hear them from another foreign Bank of England governor.
- India needs low tariffs to draw supply chains and create jobs: Raghuram Rajan"Our problems, in general, is overly high tariffs rather than overly low tariffs. There may be some cleverness we need to figure out what works best," former RBI governor Raghuram Rajan said. He said one of India's big issues is how to become a part of both the regional as well as international supply chains.
- Two-third of my tenure as RBI governor was under BJP, Raghuram Rajan reminds SitharamanRaghuram Rajan, who faced a stinging attack from FM, reminded her that two-third of his tenure was under BJP.
- Lockdown may not be enough to contain coronavirus spread in India: Rajan“It may be hard to prevent infections from spreading,”the former Reserve Bank of India Governor said.
- Governments should learn to tolerate criticism, suppressing it can lead to mistakes: Raghuram RajanRaghuram Rajan said governments that suppress public criticism do themselves a gross disservice.
- India's PCB had 'Worst Phase' under Manmohan Singh, Raghuram Rajan: Nirmala SitharamanFinance Minister Nirmala Sitharaman has said that the Indian public sector banks had the "worst phase" under the combination of former Prime Minister Manmohan Singh and RBI Governor Raghuram Rajan.Delivering a lecture at the prestigious Columbia University's School of International and Public Affairs here on Tuesday, Sitharaman said that giving all the public sector banks a “lifeline” is today her primary duty.India's PCB had 'Worst Phase' under Manmohan Singh, Raghuram Rajan: Nirmala Sitharaman
- Growth without jobs means nothing: Raghuram RajanRaguram Rajan, former RBI Governor, in an exclusive conversation with ET Now's Supriya Shrinate in Davos, has said that we have to move towards a more job-creating economy, all the growth will go for nothing if it does not create good jobs.Growth without jobs means nothing: Raghuram Rajan
- Indian public sector banks had "worst phase" under Manmohan Singh, Raghuram Rajan, says Nirmala SitharamanThe Finance Minister while delivering a lecture at Columbia University's SIPA said that she respects former RBI governor Raghuram Rajan for his work but pointed out that loans were given based on phone calls during his tenure.
- Making sense of India's growth in the times of CoronavirusFor FY20, GDP is now estimated to grow by a decade’s low of 5%.
- RBI's gradual shift from transparency to forbearance towards stressed sectorsRBI has resisted pressure on a package for NBFCs, but permitted banks not to classify defaulters in MSME, realty.
- Protectionism doesn't really help preserve jobs: Raghuram RajanProtectionism does not preserve jobs & offers little defence against automation, the former RBI Guv said.
- Do away with farm loan waivers: Raghuram RajanOnly a subset of farmers get loans, It often goes to the best connected not most poorly off, said Rajan.
- Raghuram Rajan's to-do list for the next government of IndiaAccording to Rajan, India badly needs to have a strong job-creating economic growth to avoid a slump.
- Arun Jaitley on Raghuram Rajan helping Congress with proposed NYAY schemeWhen former governors join the political mainstream, the whole cause propagated for autonomy of the institutions gets impacted, said Arun Jaitley, Finance Minister, in an interview with ETNOW. Arun Jaitley on Raghuram Rajan helping Congress with proposed NYAY scheme
- Let us restore historical trust to our GDP numbers: Raghuram Rajan"First generation reforms are still very relevant and important. Let us de-license."
- Raghuram Rajan on Jet bailout: Not necessary for every company to go through IBCIn conversation with ET Now's Supriya Shrinate, former RBI Governor Raghuram Rajan says that Bankruptcy code should act as a shadow and should be the last resort for resolution of stressed assets. He says there is a need to shorten the time in the bankruptcy code by ending an endless sequence of appeal and counter-appeal. Listen in Raghuram Rajan on Jet bailout: Not necessary for every company to go through IBC
- Raghuram Rajan questions Narendra Modi's minimum govt, maximum governance promiseRajan questioned Modi's 'minimum govt, maximum governance' and policy changes on e- comm industry.
- Poverty alleviation schemes should not be a permanent process: Raghuram RajanWhatever you create, you do not want that to hold people back from looking for jobs, says Rajan
- The Minimum income scheme is about better targetting, empowering people: Raghuram RajanThere is a level of income support at which people would prefer not to work. Studies show targeted schemes do not necessarily create laziness: Raghuram Rajan to ET NOW.The Minimum income scheme is about better targetting, empowering people: Raghuram Rajan
- The Minimum income scheme is about better targetting, empowering people: Raghuram RajanThere is a level of income support at which people would prefer not to work. Studies show targeted schemes do not necessarily create laziness: Raghuram Rajan to ET NOW.The Minimum income scheme is about better targetting, empowering people: Raghuram Rajan
- Farm loan waivers kill credit culture, says Raghuram RajanReferring to the issue of farm distress, Rajan said loan waivers cover only those farmers who have taken loans from the formal system.
- Raghuram Rajan on what India should vote for in 2019 general electionsRajan said it would be a misrepresentation of facts to say that people didn't want jobs.
- Is India ready for the future: A talk by Raghuram RajanWith the rise of NPAs, Rajan advised to “clean up” the system, and claimed the “bankruptcy code has to be one element of the larger cleanup plan.”
- Deposit insurance hike: RBI says not to hit banks balance-sheetsThe RBI does not see any major impact on banks' balance-sheets due to the five-fold hike in deposit insurance.
- Ex-RBI Governor Raghuram Rajan to get Yashwantrao Chavan national awardRajan will be presented the award at a function here on March 12 on the occasion of 106th birth anniversary of late Yashwantrao Chavan.