At the World Economic Forum in Davos, Raghuram Rajan, Katherine Dusak Miller Distinguished Service Professor of Finance at The University of Chicago Booth School of Business and former Reserve Bank of India Governor, sits down with Rahul Kanwal, Executive Director of Business Today, for a chat on India’s economic challenges. Rajan addresses concerns about India’s recent GDP slowdown, which has fallen to its lowest rate in four years. He emphasizes the worrying lack of demand consumption among the lower middle class, attributing it to weak job creation. While steady growth at 6% may appear stable, Rajan stresses that it falls short of harnessing India’s population dividend and meeting its economic aspirations. The conversation also explores the Indian Rupee’s historic decline against the US Dollar. Rajan provides a balanced perspective, explaining how the depreciation is more a result of a strengthening Dollar than domestic economic issues, though the situation calls for prudent policy measures.
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