Hindustan Times ST (Mumbai)

Lynchings give India a bad name: EX-CEA

- HT Correspond­ent

MUMBAI: Lynching incidents in India have brought a bad name to the country, said former chief economic adviser (CEA) to the government of India and noted economist, Kaushik Basu, in the city on Monday.

Basu, who is professor of economics at Cornell University in the New York, said despite slavery being prevalent in some pockets for years, the United States continued to grow rapidly. “But it could not be justified. Likewise, lynching would not possibly hit the growth of India directly. But, sectariani­sm and casteism is dreaded, and we need to fight it for a better society,” he said, while delivering sixth Literature Live annual Independen­ce lecture titled ‘The Story of India’s Economy: Yesterday, Today and Tomorrow’ — at the Trident Hotel on Monday.

Counting on India’s economic growth, Basu said the country’s economy has steadily grown since Independen­ce. At its peak, its gross domestic product (GDP) grew 9% during the Emergency in 1975, and it slumped in the next two years to (-)5.2% — much like China’s economic growth in 1980s.

Attacking the demonetisa­tion policy announced by the Narendra Modi government in November 2016, Basu said it has proved to be disastrous and has hampered job creation because of its direct impact on the informal market. However, he praised the government’s move to introduce goods and services tax (GST) and bankruptcy code to attract investment.

Pointing out that the drop in the educationa­l standards in India was worrisome, Basu said the government should think of investment in research without any political interferen­ce. Basu also pressed for the need for measures for profit-sharing among workers to reduce income inequality. “Countries such as Sweden, Singapore and Hong Kong have controlled corruption very effectivel­y and in some cases the responsibi­lity was given to autonomous bodies with no interferen­ce. It is possible here, too, if stringent laws are not used only for enemies from other parties,” he said at the lecture which was presented by JSW Group.

 ?? KUNAL PATIL/HT ?? Kaushik Basu at the lecture on Monday.
KUNAL PATIL/HT Kaushik Basu at the lecture on Monday.

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