Speaking at Brown University, former RBI governor Raghuram Rajan said demonetisation and GST were the straws that broke the Indian economy’s back.
REMYA NAIR 12 October, 2019 11:47 am IST
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New Delhi: The Indian economy is in a “worrisome” situation, with slowing growth, a fiscal deficit that “conceals” a lot and rising levels of debt and distress, former Reserve Bank of India governor Raghuram Rajan has said.
Delivering the O.P. Jindal lecture at Watson Institute, Brown University, on 9 October, Rajan said there are signs of deep malaise in the Indian economy.
“India is losing its economic way, in part because it is centralising power without a persuasive economic vision. We risk wasting the demographic dividend,” he said.
India’s economic growth slowed to a six-year low of 5 per cent in the quarter ending June 2019, prompting the RBI to lower the full year 2019-20 growth projections to 6.1 per cent.
“Growth has slowed down considerably. The fiscal deficit is large, leaving little room to do much about growth,” said Rajan, pointing out that investment banks’ projections indicate that there isn’t “going to be a rebound in the very short run”.
Global News 
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