Let Me Welcome Raghu To The Dark Side: Sanjeev Sanyal Reacts To Raghuram Rajan's Take

Sanjeev Sanyal, member of the Economic Advisory Council to the Prime Minister of India, has responded critically to former RBI Governor Raghuram Rajan's recent assessment of the Modi government's decade-long 'Make in India' initiative.

Reacting to Rajan's take that India has performed well in infrastructure building but needs to do more to boost manufacturing and jobs, Sanyal said, "Let me welcome Raghu to the dark side ......"

The former RBI Governor has previously expressed concerns about the state of labour-intensive manufacturing in India and the allocation of subsidies in industries like chip manufacturing.

Sanjeev Sanyal’s reaction to Rajan’s latest statement once again highlights the ongoing debate among economists about the strategies for balanced economic growth and priorities for future development.

Raghu Rajan's statement

In an interview with PTI, Rajan said the government's focus on production, whether it is goods or services is a good thing, but it is also important to do it the right way.

Responding to a question on the Modi government's flagship initiative 'Make in India', he said, "I would say the intention is good. I think in some areas, we have done a lot, as I said, in infrastructure...we have done a lot that has been very useful".

The Modi government's flagship initiative 'Make in India' was launched 10 years ago on September 25, 2014.

"But we need to check the other places. And the best way to check is to ask critics, what do you think? What has happened? Has it happened the way you want it? Should we do more? You get feedback, and then you work along," Rajan said.

The eminent economist also pitched for more ease of doing business, especially with regard to government policies and less fear of raids by inspectors or tax authorities, etc.

Observing that there is a package which propels economic growth, he said, "If we focus on that, I think that would strengthen the concept of Make in India".

Rajan, who is currently a professor of finance at US-based Chicago Booth, also opined that the government should ask businessmen about difficulties faced by them, and not just follow the World Bank's ease of doing business checklist.