Modi's top economist says ex RBI Guv Rajan slowed Indian economy

New Delhi, Sep 3: Blaming former RBI Governor Raghuram Rajan for the slump in economy after noteban, Niti Ayog Vice Chairman Rajiv Kumar has stoked a fresh controversy. Kumar is known to be a strong critic of foreign trained indian economists. Kumar said that the new mechanism introduced by Rajan to identify NPAs forced banks to stop fresh lending leading to a slowdown post note ban. Kumar said that is was Rajan's policies that continued the trend of slowdown and note ban had no role in slowdon

“Starting from last quarter of 2015-16, the growth rate had come down for six successive quarters,” Kumar said. "There is no evidence to show a direct link between demonetisation and growth rate decline in the days which followed. During the given period, NPAs surged from Rs 4 lakh crore to Rs 10.5 lakh crore by mid-2017 when the NDA government took charge of office in 2014," added Kumar

"The credit growth reduced to 1% or 2% and even reached negative in a few quarters. However, the government is compensating for the growth slowdown by increasing expenditure," Kumar told news agency ANI.

He also mocked former finance minister P Chidambaram for questioning the 8.2% GDP growth data. Kumar dismissed Chidambaram's statement as one that has been issued just to follow “opposition dharma.” "This is a completely false narrative and I am afraid leading people like Mr Chidambaram and our former Prime Minister added to this. I think it is better for him to accept that all the economic reforms that have been implemented by this government has begun to yield good results and he will be pleasantly surprised going forward because this growth rate will be maintained,” Kumar added.

News24 Bureau