Raghuram Rajan

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India needs a new covenant for growth in a post-Covid world: Raghuram Rajan

Former RBI governor Raghuram Rajan feels India needs to think about a new covenant on how to wriggle out of the Covid crisis and generate growth that we saw in the first few years of the present century.

In an interview to ET NOW, Rajan spoke of a staggered restarting of the economy with the aim of both saving lives and preserving livelihood.

Rajan said that the post-Covid period can’t be spend with the same kind of financial fragility and fiscal tensions with which we entered the crisis. This, he emphasised, will need significant reforms and how to build a political consensus around those reforms will be the central question.

“India in the old way simply doesn’t cut it,” Rajan said.

Rajan warned that If those reforms aren’t ushered in, India will only “crawl along” in an ineffective way and this is one thing that the country can’t afford given its large young population.

Source: The Economic Times

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