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I came from USA to India for notes change during demonetisation: Raghuram Rajan

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New Delhi, Sep 8: Raghuram Rajan, former Governor of the Reserve Bank of India says he was open to staying on as Governor but the “government did not grant me contract.”

He also said if unprepared, the notes ban can have a chilling impact on the economy. “I conveyed my notes ban concerns to those that mattered.”

Following are the highlights of Raghuram Rajan’s interview with NDTV:

He was asked that as a RBI governor two-year extension was offered, he denied and said they just had to plan it, that’s all and I had a three-year term and the term came to an end. If there had to be an extension, there had to be an agreement with the government but there wasn’t.  The government did not offer me a new contract and that’s where it ended.

When asked was RBI keen to have you back, he replied I am the wrong guy to ask (this). I cannot go into the details of our discussion but there was no agreement in the end.

He said if you’re not prepared on Day 1 with all the currency that’s being replaced – currency is important for economic activity – you will have a chilling of economic activity. You would see a dramatic slowdown of economic activity on the note ban issue.

His opinion on notes ban achievement, “There is the question of whether you can catch the guys that you want to catch and do they find ways around it. I think the worst possible combination of circumstances will be where you don’t catch the guys but you still have the effects on economy.”

‘Indians are good at Jugaad’. “In India working people have coined the word jugaad. We’re pretty good at jugaad. So if you know India well you should recognise that a lot of Jugaad happened – people will find ways around it. Its economic arbitrage with a touch of illegality about it.”

In the interview he was asked on many critical issues:

On the notes ban process

What we have said in the book that after we gave our note, a committee was set up and started the process of discussion. In my view, it never came back to us that here is a decision that you’ve to make or here’s the timing we want to do this scheme.

On new notes

We had started the process of designing the new notes. The new notes – 2000, 500 and a new 1,000 – had been approved in May. To say none (of notes ban prep) was done would be incorrect. But a monetary economist would’ve liked for all the notes to replaced at one go.

We don’t yet know the full effects of demonetisation. Based on information that we have now, ignoring future dividends, the answer is fairly obvious. (no)

On Aadhaar Cards

“I like the process of getting everybody to sign on to their accounts with the Aadhaar number.”

On Gauri Lankesh murder

It’s very unfortunate that a journalist – or anybody – be killed. But it’s too early to draw conclusions. We have to be vigilant that we don’t narrow the space for discussion but let us not worry that the country is going towards only one direction.

Raghuram Rajan on trolls

“We should not let our dialogue be governed by the idiocracy”.

On Indian economy

Efficiency of economic system breaks down with protectionism.

“One of the reason for the rise of populist nationalism is because of a sense of victimisation among the majority community. This leads to long term problems for the economy.”

Wefornews Bureau

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Sensex slips 160 points after opening in the green

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Sensex equity Nifty

Mumbai, Sep 26: The key Indian equity indices traded on a negative note during the afternoon session on Wednesday after they opened on a positive note, with the S&P BSE Sensex losing around 160 points so far.

Investors were cautious ahead of the US Federal Reserve’s monetary policy meet later in the day, analysts said.

Selling pressure was witnessed in the auto, FMCG and IT stocks.

At 12.57 p.m., the NSE Nifty50 traded at 11,039.75 points, lower by 27.70 points or 0.25 per cent from the previous close.

The BSE Sensex, which had opened at 36,936.64 points, traded at 36,492.59 points, down 159.47 points or 0.44 per cent from the previous close of 36,652.06 points.

So far, it has touched an intra-day high of 36,938.74 points and a low of 36,416.34.

IANS

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Post-2014, India ‘richer’ by 601 new billionaires, Mukesh Ambani on top

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mukesh ambani

Mumbai, Sep 25 : India added a whopping 601 new billionaires since 2014, with Reliance Industries Ltd Chairman Mukesh Ambani topping the ‘Barclays Hurun India Rich List-2018’ for the seventh consecutive year with an estimated wealth of Rs 371,000 crore.

As per the report, in 2014, there were 230 billionaires or multi-billionaires, which shot up to 831 in the 2018 in the BHI Rich List.

Earlier, in 2012, the figure was a modest 59 billionaires, which climbed to 141 in 2013. But after notching 230 billionaires in 2014, the list has grown phenomenally with 296 (2015), 339 (2016), 617 (2017) and now 831 billionaires in 2018.

Similarly, the number of USD billionaires in India in the past seven years at the prevailing exchange rates has shot up from 59 (2012) to 141 (2018) as the USD’s value grew from INR 55.60 to INR 68.40 during the period.

Among women, there was only one self-made billionaire in 2013, which increased to 11 in 2018. Women multi-billionaires shot up from just five in 2013 to 136 this year.

The cumulative wealth of these 831 individuals featured in the latest list stands at USD 719 billion, or one-quarter of the Indian GDP of USD 2,848 billion as per the IMF’s April 2018 estimates.

After Ambani, next comes S.P. Hinduja and family of Hinduja Group with estimated wealth of Rs 159,000 crore, Arcelor-Mittal’s L.N. Mittal and family at Rs 114,500 crore in the top bracket.

Following them are: Wipro’s Azim Premji at Rs 96,100 crore, Sun Pharmaceuticals Ltd’s Dilip Shanghvi at Rs 89,700 crore, Kotak Mahindra Bank’s Uday Kotak at Rs 78,600 crore, Serum Institute of India’s Cyrus Poonawalla at Rs 73,000 crore, Adani Group’s Gautam Adani and family at Rs 71,200 crore, Shapoorji Pallonji Mistry’s Cyrus P. Mistry at Rs 69,400 crore,

Five of the Top 10 belong to Maharashtra, one each from Gujarat and Karnataka, two are London-based and one is in Monaco, as per the rich list.

As expected, the country’s commercial capital Mumbai tops the billionaires’ list with 233 names, followed by New Delhi at 163 and IT capital Bengaluru at 70, said Barclays Private Clients CEO S.N. Bansal.

The annual list is a compilation of the super-richest Indians having a net worth of Rs 1,000 crore or more. This number has increased by a staggering one-third – from 617 in 2017 to 831 in 2018, said Hurun Report India’s Managing Director Rahman Junaid.

While 306 new entrants made it to the list this year, 75 of those featured in 2017 failed to find a place in the super exclusive club this year.

“The Indian edition of the list is the fastest growing rich list in the world, highlighting the optimism of a young, vibrant and ambitious country,” Junaid pointed out.

As far as top wealthy business clans are concerned, more than 50 percent of the businesses listed in the 2018 rich list belong to just 10 Indian families – Ambani, Godrej, Hinduja, Mistry, Shanghvi, Nadar, Adani, Damani, Lohia and Burman.

Four of these family-run businesses are in the first-generation and second generation, one is in third generation and one in fifth generation of operations.

“Wealth creation in India is growing at an unprecedented pace, and the time it takes to accumulate wealth is shorter than before,” said Bansal at the report launch.

IANS

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Rupee extends losses, nears 73 against Dollar

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New Delhi, Sep 25: The Indian rupee slipped in the early trade on Tuesday. It weakened by 33 paise to 72.82 against the US dollar. 

The rupee closed at 72.63 against the greenback on Monday.

The key Indian equity indices opened on a negative note today, owing to a weak rupee and rising crude oil prices.

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