Union home minister Amit Shah has stayed away from commenting on former RBI governor and renowned economist Raghuram Rajan’s critique of the present Modi government.
Rajan had written a couple of weeks back that suppressing criticism can lead to policy mistakes.
“People in authority have to tolerate criticism. Undoubtedly, some of the criticism, including in the press, is ill-informed, motivated, and descends into ad-hominem personal attacks. I have certainly had my share of those in past jobs. However, suppressing criticism is a sure-fire recipe for policy mistakes,” read the article.
When asked to respond to this criticism by Network18 group editor-in-chief Rahul Joshi, the home minister refused to get drawn into the controversy.
Amit Shah said, “I don't want to comment on Raghuram Rajan's remarks. I don't want to invite controversy. But I want to say that policymaking is the work of select representatives and parliament.”
Shah, however, did speak about the slowdown in the economy. He said that the present government inherited a bad loan mess and that the banking sector clean-up could be painful.
“The way the UPA government ran for 10 years, in reference to GDP, the growth that should've happened is now taking place at a faster rate. Scams have taken place sometime or the other and we will have to clean the balance sheets of the banks or do we build our economy on the basis of those scams? During this process a few shocks will definitely be suffered, but the government has done a detailed study and found solutions. Slowly the economy will come back on track. As far as the banking sector is concerned, for 10 years banking was done through special calls, letters, and recommendations (sifaarish). We inherited a mess and citizens have given us the responsibility to correct it and I feel that in 5 years PM Modi has taken courageous steps.”
Finance Minister Nirmala Sitharaman on Wednesday did hit out at Rajan’s comments.
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"It was in Rajan's time as Governor of the RBI “that loans were given just based on phone calls from crony leaders and public sector banks in India till today are depending on the government's equity infusion to get out of that mire," she said.