Senior BJP leader and Rajya Sabha MP Subramanian Swamy had once called Raghuram Rajan a failed Governor of India’s central bank. After Swamy’s remark, people from both sides of the political spectrum indulged in verbal arguments. The arguments were presented with facts and statistics that were largely in line with the Swamy’s stand.
Swamy, in his attack on Raghuram Rajan, also said, “He (Raghuram Rajan) had joined hands with P Chidambaram in altering the gold policy. He was responsible for the frauds involving Nirav Modi and Mehul Chowksi. I will ask the Central Bureau of Investigation (CBI) to probe him next time he comes to India”. Raghuram Rajan has remained clueless about almost all the financial frauds that happened during his tenure. Raghuram Rajan had said that the central bank had no clue about the Rs. 13,600-crore Punjab National Bank scam, and that the RBI could have stopped the scam to happen had it known about it prior.
During Modi’s government, when economy is actually flourishing, Raghuram Rajan has predicted inflation and, fortunately, he has been proven absolutely wrong.
Not once, not twice, but Raghuram Rajan has predicted economic slowdown five times and his predictions have been more vague than those of an astrologer.
Sep 2013: Recession coming
Aug 2014 : Recession coming
Jun 2015: Recession coming
Apr 2017: Recession coming
June 2018: Recession coming.
As & when recession finally comes, be sure to give Rajan credit for predicting it
And stop taking astrologers seriously pic.twitter.com/lZ03YOlRWo
— Abhishek (@AbhishBanerj) March 26, 2019
In 80:20 Gold scheme, a scheme which UPA government introduced 5 days before it officially demitted the office, jewellery industry had warned Raghuram Rajan about the scheme. It’s the same scheme that eventually lead to the PNB account, in which Mehul Choksi and Nirav Modi are accused for. The India Bullion and Jewellers Association (IBJA) in its letter to Raghuram Rajan wrote “make a prudent appraisal” of the decision and “check the loopholes before it was too late”.
Raghuram Rajan has shown his incompetency multiple times, from red flagging Mudra loan, where more than 98% of the loans disbursed are getting repaid, to calling Nyay scheme doable, where the Congress proposes free distribution of ₹3.6 lakh crore. Is giving free loans worser than giving free money? Even a class 5th student can answer this? Then why’s a highly qualified economist like Raghuram Rajan supporting a scheme that can wreck India’s economy? Is there some ulterior motive?
Rajan had “red flagged” Mudra in which >98% loans are getting repaid.
But he says that handing out ₹3.6 lakh crore every year in doles is a good idea.
Giving loans to poor is bad economics, giving them free money is good economics. What a fraud! pic.twitter.com/z28vqT2h5r
— Chowkidar Spaminder Bharti (@attomeybharti) April 1, 2019
Previously, Raghuram Rajan opposed Jan Dhan Yojna too, in which millions of poor got their bank account. However, it is now widely known that Jan Dhan Yojna was arguably the biggest financial inclusion scheme that empowered poor and saved thousands of crores of the government’s money.
*Author pursued his Masters in Economics degree from the Nalasopra School of Buisness*