Raghuram Rajan bats for Atal Bihari Vajpayee model of governance

Rajan said bank mergers are a step in the right direction but did not come at a right time

Former Reserve Bank of India (RBI) governor Raghuram Rajan has partly blamed a lack of “persuasive” vision and too much centralisation of power under the current government for the economic mess that the country is in today.

Delivering the O P Jindal lecture at Watson Institute, Brown University, Rajan also said the system does not accept people from the outside, but sectors like banking need outside expertise.

Rajan pointed out that the recent cut in corporation tax rates has been beneficial but the uncertainty in terms of changes in the tax regime becomes a dampener for firms. “We have a habit of