Raghuram Rajan says he will return if there is an opportunity to be of use
New Delhi: Amid speculation that he may be the finance minister if an opposition alliance wins the ensuing general elections, the former RBI Governor Raghuram Rajan has said he is willing to return to take an opportunity where he could be of use.
Rajan, a former Chief Economist at the International Monetary Fund who was denied a second term as Reserve Bank Governor by the BJP-led government, said he is "very happy" where he is, but is open to opportunities.
"I am very happy where I am. But if there is an opportunity to be of use I will always be there," he said at the launch of his new book 'The Third Pillar' on Tuesday evening.
Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago's Booth School of Business in the US, was asked if he would like to return to India in public service or even a political role.
Speculation in political circles has been that he may be a choice for finance minister if the 'Grand Alliance' of opposition parties such as TMC, Samajwadi Party, BSP and TDP were to win the April/May general elections.
Congress President Rahul Gandhi had on Tuesday stated that Rajan was among top economists that his party had consulted to draft its minimum income guarantee scheme, Nyuntam Aay Yojana or NYAY.
The scheme assures up to Rs 72,000 a year or Rs 6,000 a month income to 20 per cent of India's poorest families if the Congress is voted back to power in the Lok Sabha elections next month.
In an interview to CNBC TV18 Tuesday, Rajan said it was "premature" to discuss if he was approached by any of the parties to take up a policy-making position if they were to win.
"I think it is premature to have this discussion. I really think that this is an important election for India and I also think we need a new set of reforms. I would be happy to push those ideas and we are trying to do that more broadly to anybody who listens," he had said.
Rajan, who is credited with taking some bold decisions on cleaning up of bank balance sheets as the RBI Governor, when asked what his priorities would be if he was the finance minister of the country, he said "I think there are short-term issues".
"A number of economists, of which I was one, have put together a set of policy ideas and they are out there for anybody to read. They are coming out in a book but let me say very quickly that certainly, I would focus on short-term actions that could put a lot of projects back on track," he said.
Also, cleaning up the banks as quickly as possible and set them back on credit growth, and finding two or three key reforms that could unleash growth would be his focus, he said.
"Certainly one of them has to be how we review agriculture in a way that reduces distress. Second would be the issue of land acquisition. Can we learn from the best practices of the states and find methods that seem fair and in a sense also give states the freedom to pick the method that works best for them so that we learn from each other's experiments?
"Land acquisition and bank cleanup, as well as, trying to find some key policies that would revive agriculture - these would be top priorities," he said.
Rajan was the 23rd Governor of the Reserve Bank of India between September 2013 and September 2016. Between 2003 and 2006, he was the Chief Economist and Director of Research at the IMF.
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India, Ethiopia elevate ties to strategic partnership as PM Modi holds talks with his counterpart
Addis Ababa (PTI): India and Ethiopia on Tuesday elevated their historical ties to a strategic partnership, as Prime Minister Narendra Modi held wide-ranging talks with his Ethiopian counterpart Abiy Ahmed Ali during which they discussed issues of bilateral and mutual interest.
Modi, who arrived here from Jordan on his maiden bilateral visit, was accorded a ceremonial welcome at the National Palace ahead of the bilateral talks, reflecting the vibrant India-Ethiopia relations rooted in shared history and a promising future.
"We are elevating India and Ethiopia relations to a strategic partnership. This step will provide new energy, new momentum and new depth to our ties," Prime Minister Modi said during the delegation-level talks.
He thanked PM Ali for his support in India's fight against terrorism. "The support of friendly countries in this struggle against terrorism holds great significance," Modi said.
"Today, we got the opportunity to deliberate on the key aspects of our cooperation, such as economy, innovation, technology, defence, health, capacity-building and multilateral cooperation. I am pleased that today, we have decided to double the student scholarship for Ethiopia in India," Modi said.
Modi said that India and Ethiopia have shared contact, dialogue, and exchange for thousands of years. The two countries, which are rich in languages and traditions, are symbols of unity in diversity, he added.
"Both countries are democratic powers committed to peace and the welfare of humanity. We are co-travellers and partners of the Global South. On international platforms, we have stood shoulder-to-shoulder," he said.
The two sides signed eight MoUs/agreements, including upgrading ties to 'Strategic Partnership', customs cooperation, establishing data center at the Ethiopian Foreign Ministry, UN Peacekeeping training cooperation, debt restructuring under G20, more ICCR scholarships and AI short courses for Ethiopians, and support for maternal and neonatal healthcare.
Modi said the African Union's headquarters in Ethiopia makes the country a meeting point of African diplomacy. "Inspired by the common vision of an inclusive world, in 2023, India ensured that the African Union became a G20 member," he said.
In 2023, during India’s G20 Presidency, the African Union was admitted as a permanent member of the G20.
Modi said that though this is his first visit, he felt a deep sense of belonging and warmth, reflecting the thousands of years of connection between the two countries.
On his part, Prime Minister Ali said the two countries share over thousands of years of connection through trade, diplomacy, education, culture and even in our food and traditions. "These ties continue to shape a deep friendship, collaboration and mutual respect between our people," he said.
"We also appreciate your consistent message that Africa's priorities must lead the partnership. These kinds of dignified, respectful messages for Africa are very important. Mr Prime Minister, keep pushing. That is the type of message we are expecting from all our trusted friends," Ali said.
He said this aligned fully with Ethiopia's development plan - African-owned, African-led, and African-defined.
"Today, we meet with a clear focus to shape a modern partnership, grounded in sovereignty, self-reliance and practical cooperation. Our cooperation is rooted in equality and South-South solidarity," he said.
"Our economy is performing strongly. Last year, we grew 9.2% and this year we are expecting 10.3% GDP growth. Besides GDP growth, our FDI inflow is also rising big time. India is the leading source for our FDI," he said.
"We have more than 615 Indian companies which are investing in Ethiopia. This all gives our cooperation a strong foundation of trust. I think our decision today that we elevate our historic relationship to a strategic relationship is the right decision," he added.
Ethiopia also conferred its highest award - The Great Honour Nishan of Ethiopia - on PM Modi. He is the first global head of state to receive this award.
Prime Minister Modi also went to the Friendship Park and Friendship Square in Addis Ababa with PM Ali.
In a warm and special gesture, PM Modi was earlier received by his Ethiopian counterpart at the airport and accorded a warm and colourful welcome.
"Ethiopia is a nation with great history and vibrant culture," Modi said.
PM Ali informed his Indian counterpart about the varieties of Ethiopian coffee during informal talks.
"At Addis Ababa airport, took part in a traditional Coffee Ceremony with Prime Minister Abiy Ahmed Ali. The ceremony beautifully highlights Ethiopia’s rich heritage," Modi said.
In a unique gesture, the Ethiopian Prime Minister drove Modi to the hotel.
On the way, he took a special initiative of taking PM Modi to the Science Museum and Friendship Park, which was not in the itinerary.
"Gratitude to Prime Minister Abiy Ahmed Ali for showing me glimpses of Ethiopian history and culture at the National Palace Museum in Addis Ababa. It was a powerful reminder of Ethiopia’s rich traditions," Modi said in a post on X.
The Nobel Peace Prize-winning Ethiopian PM’s special gestures show remarkable respect for Modi, sources said.
"Thank you Ethiopia for a welcome that was unforgettable. The Indian community showed remarkable warmth and affection. India-Ethiopia friendship is going to get even more robust in the times to come," Modi said.
When Modi arrived at the hotel, he was warmly welcomed by the members of the Indian community. Local artists performed dances. Some of them danced on the theme of the popular Hindi song 'Aisa Des Hai Mera' to welcome him.
On Wednesday, Modi will address the Joint Session of Parliament and share his thoughts on India's journey as the "Mother of Democracy" and the value that the India-Ethiopia partnership can bring to the Global South.
PM Modi arrived in Ethiopia from Jordan, where he held a one-on-one meeting with King Abdullah II at the Husseiniya Palace on Monday before the delegation-level talks.
India and Jordan also inked MoUs in the fields of culture, renewable energy, water management, digital public infrastructure and twinning arrangement between Petra and Ellora, aimed at giving a major boost to bilateral ties and friendship.
From Ethiopia, Modi will visit Oman on the final leg of this three-nation tour.
