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Rajan warns against getting euphoric over India’s growth

Warning against being “euphoric” about India being the fastest-growing economy, RBI Governor Raghuram Rajan in Wednesday sought to contextualise his “one-eyed king” remarks about India’s growth and said the country has a long way to go before it claims to have arrived. “As a central banker who has to be pragmatic, I cannot get euphoric if India is the fastest growing large economy,” he said.

Raghuram Rajan-AV

Seeking to explain his ‘one-eyed king’ comments, Rajan said his comments were “hung out to dry out of context” and even offered an apology to the visually-impaired for hurting them by the use of the proverb.

Stating that the per-capita income of Indians remains lowest among BRICS, Rajan said, “We have a long way to go before we can claim we have arrived. We need to repeat this performance (economic growth) for 20 years before we can give each Indian a decent livelihood.”

He also said India’s global reputation holds great promise, but is seen as a country that has under-delivered and that it should “implement, implement, and implement” the structural reforms. Speaking at the convocation of National Institute of Bank Management, Rajan said India is yet to achieve its potential growth though it is on the cusp of that and a substantial pick-up in growth can be achieved with pending reforms.

Making a reference to his last week’s interview to a foreign publication where he likened India being the fastest-growing major economy to a case of the one-eyed man being king in the land of the blind, Rajan said his comments were interpreted as having denigrated the country’s success rather than emphasising on the need to do more. “… Every word or phrase that a public figure speaks is intensely wrung out of meaning.

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