New Delhi: Chief Economic Advisor Raghuram Rajan has admitted that Indian economy suffers due to slow decision making processes in the government. Rajan also incised the Indian economic system for creating barriers to improve the business environment in the country while speaking to Karan Thapar on Devil's Advocate.
Below is an excerpt of the interview:
Karan Thapar: The government knows it needs to act, fails to act and is well aware of the fact they are depressing international investors affecting the rupee but still is unconcerned.
Raghuram Rajan: I would agree with you on one issue which is that government processes take too long. That's partly why we have set up new structures to try and accelerate the process. Now even those structures need some teething, some time to find their way. We fully understand that.. We fully need to in every way up our game and that is what we are trying to do.
Karan Thapar: Why is Kumaramanglam Birla telling the Financial Times on the June 6, there are so many clearances required to put up a project in India, I will wait for time before I put more money into investments into the ground. He is indicating to the world that things are sclerotic.
Raghuram Rajan: Things are difficult in India. We have to improve the business climate. We have to reduce the regulations that govern business. Some of the regulations come from British times. We need to change that. There is no question.
Karan Thapar: Sixty five years have gone by and we haven't changed that?
Raghuram Rajan: We haven't changed it because they are all intertwined. They are at the state level, national level..
Karan Thapar: That is a horrible indictment of the Indian system.
Raghuram Rajan: We need a thorough revamping of these rules.