Raghuram Rajan warns against ‘euphoria’ over fastest-growing tag
PUNE: Warning versus being “euphoric” about India being the fastest-growing economy, RBI governor Raghuram Rajan on Wednesday sought to contextualise his “one-eyed king” remarks about India’s growth and said the country has actually a long way to go before it claims to have arrived.
“As a central banker who has actually to be pragmatic, I cannot get euphoric if India is the fastest growing large economy,” he said.
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 actually 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 victory rather than emphasising on the need to do more.
“… Every word or phrase that a public figure speaks is intensely wrung out of meaning. When words are hung out to dry out of context as in the newspaper headline, it only becomes a fair game for anyone who wants to fill in, meaning to create mischief,” he said.
Finance minister Arun Jaitley had rebutted Rajan’s remarks, saying compared with the rest of the world, the Indian economy is growing much faster and, in fact, the fastest.
Commerce minister Nirmala Sitharaman too had not taken Rajan’s remarks lightly, saying better words should have been used.
Rajan said commonly used words or proverbs can “most easily and deliberately be misinterpreted”.
“If we are to have a reasonable public dialogue, we should read words in their context, not stripped of it,” he said.
He, however, apologized to the visually-impaired whose association had criticised Rajan for using the proverb.
“I do want to apologize to a section of the population that I did hurt with these words, that is the visually impaired, or the blind,” Rajan said.
Queried for his take on India being the ‘bright spot’, Rajan during last week’s interview had said: “I think we have still to get to a place where we feel satisfied. We have this saying ‘In the land of the blind, the one-eyed man is king’. We are a little bit that way.”