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Modi government came in power with a ‘probably unrealistic’ promise: RBI Governor Raghuram Rajan

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By NewsGram Staff Writer

Addressing the audience of the Economic Club of New York on Tuesday, Reserve Bank of India (RBI) Governor, Raghuram Rajan, said that the Modi Government came in power with a ‘probably unrealistic’ promise, but the government is taking steps to create an environment for investment and is “sensitive” to the concerns of investors.

“The government has taken steps to create the environment for investment, which I think is important,” said RBI Governor.

Rajan said that the government is creating an environment for investors and that will be a boon for thousands of unemployed youths of India. A “big part” of the business environment is taxes and the government has made it clear that it will not bring retrospective taxation again.

“However, once the tax authority levies a demand on you, there is a quasi-judicial nature of that proceeding and therefore it has to go through the courts before it is resolved. The government cannot intervene,” Rajan added, while adding, “Legacy issues are winding their way through the courts, including issues based on laws that existed before they were changed.”

Rajan also praised government’s different policies from Land Acquisition Bill to monetary reforms.

He said that since different states have their own Land Acquisition Bills, some commentators have suggested the possibility that the states should decide for themselves as to how to implement their respective land acquisition provision, as per the report of The Financial Express.

He stated that inflation “has come down tremendously in India” and the rupee has basically stayed relatively flat since the beginning of the year.

“If you look at rupee’s volatility relative to other currencies, you’d have to argue that the rupee has been one of the most stable currencies (against) the dollar,” Rajan said.

The RBI governor’s statement came in the note of Modi’s one year in office.

Rajan commented, “It is appreciable the way the government tried to implement its ‘probably unrealistic’ promise and to create a friendly relation with its neighbors.”

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Oli Assures Modi, Nepal’s Territory Won’t Be Used Against India’s Interests

After assuming office in February, Oli made his first foreign visit to India in April.

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Gokhale said that Modi's two-day visit to Nepal was aimed to strengthen bilateral relations
KP Sharma Oli, PM of Nepal, wikimedia commons

Prime Minister K.P. Sharma Oli has told his Indian counterpart Narendra Modi that Nepal’s territory will not be used against New Delhi’s interests, Indian Foreign Secretary Vijay Gokhale said here on Saturday.

“Oli reiterated that they will be sensitive to our concerns and their territory will not be allowed to be used by anybody against India. Prime Minister Modi reciprocated the sentiments,” Gokhale told the media.

Gokhale called Oli’s view “very significant”.

There was a chill in India-Nepal ties during Oli’s earlier stint as Prime Minister between October 2015 and August 2016 when a border blockade blamed on New Delhi crippled Nepal’s economy.

There were also perceptions that Oli was leaning towards China than India.

Gokhale said that Modi’s two-day visit to Nepal was aimed to strengthen bilateral relations “whether it be cross-border electricity or cross-border connectivity”.

“We are looking into cross-border electricity and cross-border connectivity not only with Nepal but other neighbouring countries as well,” he said.

After assuming office in February, Oli made his first foreign visit to India in April.

Stating that India welcomed the restoration of democracy in Nepal, Gokhale said that both the government and the opposition in the Himalayan nation were parties to it.

He said both sides agreed to be committed towards the stated projects. “We will address this within a set timeline.”

Prime Minister, Narendra Modi stressed on the importance of service to others in his last Mann Ki Baat edition for 2017.
Modi is on Nepal visit for two days, wikimedia commons

According to Gokhale, Oli confirmed to Modi that Nepal will host the the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (Bimstec) summit this year.

Bimstec comprises seven countries lying in the littoral and adjacent areas of the Bay of Bengal — Bangladesh, Bhutan, India, Myanmar, Nepal, Sri Lanka and Thailand.

Gokhale also said that Modi’s visits to cultural sites in Nepal “suggested that there should be strong people-to-people ties”.

Apart from offering prayers at temples in Nepal, the Indian leader inaugurated the Janakpur-Ayodhya bus service, a 900 MW hydropower project and announced Rs 100-crore aid to develop Janakpur city.

Also Read: Water Crisis is Increasing in Cape Town, Red Alert For Africa 

He also held extensive discussions with Oli, President Bidhya Devi Bhandari and other government officials to better bilateral ties after which he said: “All misunderstandings with Nepal are over.”

Modi also met leaders of opposition parties, starting with former Prime Minister Sher Bahadur Deuba and other members of the Nepali Congress.

He exchanged views on strengthening bilateral ties with former Prime Minister and Chairman of the Communist Party of Nepal (Maoist Centre) Pushpa Kamal Dahal “Prachanda”. (IANS)