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What does Raghuram Rajan exactly want?

Pratyush Madhav by Pratyush Madhav
2 June 2023
in Politics
Raghuram Rajan
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Ever thought that a gold medallist from IIT, with additional honours from IIMA  and MIT, would soon turn out to be a meme material, giving competition to the likes of Nitish Kumar in terms of ideological switch? If not, meet Raghuram Rajan. The ex-RBI governor is seemingly clueless on how to present his points on the Indian economy without sounding like a pure buffoon!

Let’s delve into the recent incidents involving Rajan that have gone viral, highlighting the disparity between his predictions and the actual reality of India’s economic growth.

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A Mismatch of Predictions

Raghuram Rajan, the renowned economist and former RBI governor, has been making headlines again, and for all the wrong reasons. Despite his impressive credentials, Rajan’s recent remarks have raised eyebrows and sparked a furious debate.

During the magnificent Bharat Jodo Yatra, Raghuram Rajan fearlessly proclaimed in the presence of Rahul Gandhi that the Indian economy would encounter a challenging phase. He suggested that achieving a growth rate of 5 percent during the period from 2022 to 2023 would be nothing short of a miracle. However, the latest estimates for the annual growth rate reveal an astonishing 7.2 percent, surpassing even the predictions of esteemed international experts. This striking disparity between Rajan’s prediction and the actual performance of the Indian economy raises doubts about his comprehension of the country’s economic dynamics and the basis on which he made such assertions.

Critics of Rajan contend that his pessimistic viewpoint overlooks the resilience and potential of the Indian economy. They argue that his emphasis on potential challenges, without acknowledging the strides being made, could generate unwarranted panic and undermine investor confidence. While it is crucial to be mindful of potential risks, it is equally important to acknowledge the positive progress achieved by the Indian economy.

Also read: Report on India: Morgan Stanley gives double thumbs up to Modinomics

Hypocritical Stance on Mobile Exports

Yet another instance where Raghuram Rajan’s inconsistency is laid bare for all to see? This time, let’s talk about his ever-changing stance on India’s mobile exports.

In the past, he took great pleasure in expressing his scepticism, about India’s potential in this sector. He just couldn’t resist casting doubt on India’s ability to compete on a global scale. But after India experiences a resounding boom in mobile exports now and witnesses the rise of successful domestic manufacturers.

Ah, and what does Mr. Rajan do now? Oh, he performs a classic manoeuvre of conveniently shifting his concern from the potential of these exports to the quality of them. How utterly fascinating! It seems he has mastered the art of flip-flopping, much like a fish desperately trying to find its way in a muddy pond.

Isn’t it just marvellous to witness such predictable behaviour from a company man like Mr. Rajan? After all, it’s no surprise to see him blabbering nonsensically, as his every move and stance are carefully crafted to align with the oh-so-great ideology of the Congress party.

One must marvel at the resilience and tenacity of our nation’s entrepreneurs and manufacturers, who continue to excel and prove the doubters wrong despite the disparaging remarks from the likes of Mr. Rajan. Perhaps it’s time for him to take a step back and reassess his constant scepticism, or better yet, find a new hobby that doesn’t involve raining on India’s parade.

Critics around the globe argue that Rajan’s change of tune indicates a lack of coherence in his views and raises doubts about his credibility as an economic expert. They argue that his earlier scepticism about India’s potential in mobile exports was misplaced, as the country has proven its competence and competitiveness in the sector.

So, it is crucial for experts like Raghuram Rajan to maintain a consistent and well-informed perspective, based on thorough analysis and a deep understanding of the real-world conditions. Alternatively, it would be advisable for him not to publicly express confused and unfounded opinions that merely serve to earn political brownie points for the party he tirelessly advocates for.

Also read: Nominal GDP Growth at 16.1%? National Statistical Office releases India’s Economic accomplishment

Biases or Incomplete Evaluations?

Raghuram Rajan prediction of a difficult year ahead for the Indian economy contradicts the current reality of India being the fastest-growing major economy in the world, with a robust GDP growth rate of 7.2 percent in the financial year 2022-23. These discrepancies highlight the danger of presenting personal wishes as predictions without concrete evidence or thorough analysis. It is important to differentiate between ideological bias and objective economic analysis, and we haven’t even begun on his legendary analysis of the current growth as the “Hindu Rate of Growth” yet.

Raghuram Rajan’s recent statements and predictions have undeniably sparked a heated debate and fostered scepticism regarding his comprehension of the Indian economy. The stark contrast between his prognostications and the actual economic performance, coupled with his inconsistent stance on crucial topics like mobile exports, have given rise to legitimate concerns about the dependability of his assessments. In this ever-evolving landscape of the Indian economy, it becomes imperative to place our trust in objective analysis and expert opinions rooted in factual data, rather than relying on personal biases or incomplete evaluations.

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