Former RBI Governor Raghuram Rajan has said that the comparisons between India and China are unfair. The reason is that China is about five times India’s size, and we should focus on improving infrastructure.
“I think the comparison is often made between India and China. That is a comparison which to some extent is unfair to India. They are two very different countries.”
“By any criteria, except comparisons to China, India is a very impressive story. You have a close to first world civil society, very entrepreneurial politicians but a third world administration. Put that combination together and it becomes very hard to build out, acquire land and build those mega projects in India.”
“Ultimately I believe that the strongest system for growth is not a state-run system, not an autocratic system. When you are at the frontier, a liberal market democracy is the strongest system because of the checks and balances built into it.”
“India has a lot to do to get there but it doesn’t have a deep constraint in reaching there. It has to make sure it doesn’t go autocratic on the way but it has all the elements to reach there.”