Addressing a webinar, Rajan emphasized the need to make the government more responsive to criticism by removing some of the legislative restrictions on criticism.
“Our trend toward majoritarianism has huge consequences, all of them adverse…it goes against every economic principle,” he warned. Known for his outspoken views, Rajan said that India needs inclusive growth and that the country cannot have inclusive growth if it treats any segment of the population as second-class citizens.
According to him, majoritarianism is divisive, it divides India at a time when India has to remain united, given the external threats facing the country.
“The way we see majority rule developing will, in a sense, be extremely dangerous for the future of India. I believe that it should be resisted at every step”, said the eminent economist.
Rajan, currently a professor at the University of Chicago Booth School of Business, said India has strong growth today, but you have to be careful with the growth numbers.
“Any growth obviously should be celebrated. But we cannot ignore the fact that the strong growth is due to the disastrous figures recorded in the last fiscal year,” he said.
The eminent economist noted that India has underperformed since the global financial crisis.
“We haven’t created the good jobs we need…despite strong growth, we are significantly below the pre-pandemic trend line,” he said.
According to Rajan, India’s export performance has been good but not spectacular.
The eminent economist highlighted the increase in female labor participation in India.
However, he added: “Even during the last decade of slow growth, India has had some successes, but we must do better.”
Pointing out that data is needed to make the right decision, Rajan said: “We need a government that learns. We should stop suppressing data, whether it’s unemployment data or COVID death data.”