Raghuram Rajan dubs India's 7% economic growth, 'Hindu rate of growth', blasts demonetization
Former RBI governor Raghuram Rajan has spoken at length on two of the biggest and most controversy-generating issues in India in recent times that have embroiled the financial system here. Rajan has provided his view about both the ordering of demonetization of Rs 500 and Rs 1000 currency notes by PM Narendra Modi and the NDA government's implementation of the Goods and Services Tax (GST). Raghuram Rajan said that these two are the major headwinds that held back India's economic growth last year. Rajan added that the current 7 percent economic growth rate is not enough to meet India's needs. Raghuram Rajan was speaking at the University of California in Berkeley and was delivering the second Bhattacharya Lectureship on the Future of India on Friday. Here are the highlights of his quotes:
Raghuram Rajan: Demonetization and the GST
Four years - 2012 to 2016 - India was growing at a faster pace before it was hit by two major headwinds. The two successive shocks of demonetization and the GST had a serious impact on growth in India. Growth has fallen off interestingly at a time when growth in the global economy has been peaking up. Image Source: Reuters