Failure to rein in right wing groups could hit development agenda, Bhagwati cautions Modi

Noted economist Jagdish Bhagwati while lauding Prime Minister Narendra Modi as being a ‘people’s prime minister’ has also cautioned that his inability to rein in right wing groups from hogging the limelight would hit his development agenda for the country. “I think the PM must be saying more things to hold these people back from capturing the imagination and (instilling) possible fear among large number of people. That can’t be good for his development agenda and that is where a little push would be helpful,” Bhagwat was quoted as saying at the Madhavrao Scindia Foundation lecture in an Indian Express report . The economist said that the “corrosive nature of things” that the RSS was indulging in worried him and that while he didn’t forsee any damage immediately due to it, it would result in everyone getting fed up in the medium term. Asked about his views about the government using the ordinance route to push through key bills, the noted economist said: “President Obama is in exactly the same situation. My brother and former Chief Justice of India P N Bhagwati had a famous judgement saying executive orders are constitutional…but it is not good in the long run.” [caption id=“attachment_2045603” align=“alignleft” width=“380”] PTI image[/caption] But  Bhagwati was also effusive in his praise for the Prime Minister who he said was committed to reforms and he said he was sure that the government would push through FDI in multi-brand retail. “Traditional base of BJP is shopkeepers. Now he (Modi) has got a wider constituency, and he may be able to move on. Whatever little discussion I had with him when he was Chief Minister of Gujarat, I never found any anti-multibrand retail sentiments expressed by him. “… this is a matter of my forecasting, I guess in one year, he will consolidate himself and open up FDI in multi-brand retail,” Bhagwati said. “Modi is in a position of going fast on economic reforms and he is moving fast … He is scaling up trade liberalisation and he is scaling up direct foreign investment,” Bhagwati said. Replying to a specific question on multi-brand retail, Bhagwati hoped that the Modi government, which is moving fast on economic reforms, would open the sector to foreign investment within a year. “He (Modi) is willing to experiment. He is much more flexible…Modi is in a position of going fast on economic reform and he is moving fast. Now things are moving faster. “He is scaling up trade liberalisation and he is scaling up direct foreign investment. And I think it is something that can be scaled up … He knows that trade works,” he said. The Columbia University professor also termed Modi’s predecessor Manmohan Singh as ‘people’s Prime Minister’ and said both of them came from relatively modest backgrounds. Singh was present during the lecture, which was also attended by a host of other Congress leaders, including former Finance Minister P Chidambaram. Citing the Gujarat model, Bhagwati said growth is important because it helps in creating more employment and generating revenue for social sector spending. “The Gujarat model is not just creating prosperity. It is about you accumulate money and spend on social sector…. Growth is important because it helps in creating more employment and generating revenue. And we will…spend money on social sector,” he said. The noted economist had earlier cautioned the Modi government should not start spending money until revenues start flowing in. with PTI inputs