Raghuram Rajan wrong to blame Modi

Raghuram Rajan wrong to blame Modi

Raghuram Rajan, the former RBI governor, has said that India's Non Performing Assets are a result of the over-optimism of bankers, growth slowdown and policy paralysis.  

So far, so good.  However, he added that the government's action on the high-profile fraud cases is a mystery.  This has been taken to mean by many that the Modi government is not keen on resolving bad debts.  But the truth is quite the opposite.

"I wonder what action Manmohan Singh would have taken if he had got this explosive Rajan letter! Get real, guys. All action has to be taken through the court and that is what Arun Jaitley and Narendra Modi Insolvency Code ensured. So you should be praising Modi, not damning him," says columnist Sunil Jain.  

Writes columnist Sadanand Dhume, "Natural for political parties to use Raghuram Rajan’s testimony as part of their perpetual shouting match, but he’s merely being factual here. Hardly a secret that much of India’s NPA problem goes back to the go-go years of 2006-08."