No Rate Change: Raghuram Rajan spots an upside risk to inflation because of 7th Pay Commission, others

WHEN there has been an intense speculation about RBI Governor Raghuram Rajan's extension at Mint Road, the Governor on Tuesday decided to pose again. At 11 am, as Rajan began his monetary policy statement, he did not surprise many by keeping the repo rate unchanged at 6.5% and CRR at 4%. A cut in these rates could have made loans cheaper. But what made the Governor to take that decision? It’s the implementation of the 7th Central Pay Commission coupled with…

“Make in India” or “Make for India”? DIPP secretary Amitabh Kant on RBI Guv Raghuram Rajan’s idea

Kant with a copy of "arthniti" (File pic)

A FORTNIGHT ago, an economist of global stature and RBI governor Raghuram Rajan said that Make in India’s focus on manufacturing following the Chinese model of export-led growth is not intended. He argued, the world as a whole is unlikely to be able to accommodate another export-led China. So, why not “Make for India”, Rajan argued, asking for tapping the domestic market instead. DIPP secretary Amitabh Kant who is…

Omita Paul, Raghuram G Rajan and North Block’s lucky room 132-A

WITH celebrity economist Raghuram G Rajan being appointed as new RBI Governor, North Block’s room number 132-A has proved lucky for its occupant, once more. The room that adjoins finance minister’s corner room was earlier occupied by Omita Paul who…

Are Indian bureaucrats ace drivers in traffic jams? Murthy, Rajan's take

GONE are the days when India Inc keeps mum on policy bottlenecks that do arise because of lack of decisions. Only a few days ago, Infosys co-founder and poster boy of post-liberalisation era, Narayana Murthy asked in a television show why problems in IT industry are not being considered “urgent” and “solved by 5 pm this evening”. Will Indian bureaucracy be a handicap for celebrity economist and India’s new chief economic adviser Raghuram Rajan too? This is how 49-year-old MIT product Rajan reacted to reporters’ queries: