This is top of the FT’s most-read list – it’s a thoroughly recommended interview of the governor of India’s central bank. Check it out!
As I reflected on the excellent article my mind drifted to India Prime Minister Mondi’s call for more inward investment, earlier this week. Soon my mind wandered to China. I thought of the lightening fast response of China’s government to the 2008 financial crash. Next, I was reflecting on my extended trip to India, earlier this year. India is like the famous glass, either half-full or half-empty, depending upon viewpoint. As a passionate advocate of democracy, I really admire India, which is by far, the world’s largest democracy. Power in India is widely devolved, with many checks and balances, plus vested interests, of course.
Much as I love India, I fear that under the leadership of Prime Minister Mondi and Governot Rajan that radical reform will be too slow. Much of my earlier career has been involved in delivering strategic change, including in the government departments and international agencies. I have also worked extensively in India.
I fear that Raghuram Rajan, former Chief Economist of the IMF, will not be given the power to dole out bitter IMF medicine to India.
For me, a radical reform agenda for India would include opening the economy to foreign investment, outsourcing the public sector and drastically increasing infrastructure investment.
All over India in major cities, one can see the extension of the underground railways – this is often financed by bilat loans from Japan – this is an important start.
Any thoughts on overcoming India’s challenges?