Amid the heated political debate over freebies, former RBI governor Raghuram Rajan said he had written to the Election Commission of India as RBI governor seeking some restrictions on election promises related to loan waivers. Rajan says that providing welfare to the poorest households is not a bad investment. “If I spend on better nutrition for children or good education, it is a great investment,” says Rajan during an exclusive interaction with Fortune India.
“A general voter understands that to some extent the freebies are not sustainable. I think we are prisoners of our own instruments. So what are the tools that people engage with? By and large, government jobs, reservations and more freebies. It is up to people like us, the intellectuals and the media, to move the needle on the things that people should demand of their government. People should ask for public services, health and education etc and then ask for freebies,” says economist Rohit Lamba. The latest book by Rajan and LambaBreaking new ground: Rethinking India’s economic future‘ touches on current issues related to accelerating the country’s economic growth.
