NEW DELHI/MUMBAI: Former Reserve Bank governor Raghuram Rajan on Wednesday said he had advised Congress leadership on the ‘Nyuntam Aay Yojana’ (NYAY) scheme. Rajan, speaking at the launch of his book The Third Pillar in Mumbai and also in New Delhi, maintained that the promise of Rs 72,000 a year per poor family is “doable”.
He said the NYAY scheme is well worth an idea and that it should be made more than just a handout. “It has to be a way of creating a platform for them to become regular contributors of the workforce,” he said.
The former RBI chief said both BJP and Congress have taken the Direct Benefit Transfer route, and have shown cash transfers are the way forward. Calling the criticism of NYAY a misreading, Rajan said it can create necessary capabilities in the poor to create a workforce, and also help boost growth.
During the interaction, Rajan also said he is open to returning to India to take up an opportunity, where he can be of use.
“I am very happy where I am. But if there is an opportunity to be of use, I will always be there,” he said, in response to a question on whether he would like to return to India in public service or even assuming a political role. Rajan is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business in the US.
There are already speculations in the political circles that the Grand Alliance would prefer Rajan for the post of finance minister, if they come to power. Later, in an interview, Rajan said it was premature to discuss if he was approached by any political party to take up a policy-making position, if they were to win.
‘Will go for short-term plans to get things back on track’
When asked what his priorities would be if he was the finance minister of the country, Raghuram Rajan, who is credited with taking some bold decisions on cleaning up of bank balance sheets in his capacity as the RBI governor, said there are short-term issues.
“A number of economists, of which I was one, have put together a set of policy ideas and they are out there for anybody to read. They are coming out in a book, but let me say very quickly that certainly, I would focus on short-term actions that could put a lot of projects back on track,” he said.