Raghuram Rajan calls India's reported over 7% GDP growth 'off'
Former Reserve Bank of India (RBI) Governor Raghuram Rajan is raising eyebrows at India's reported more than 7% GDP growth, saying it doesn't match up with what's happening on the ground.
He pointed out that if the economy was really booming, we'd see more investment and capital coming in, but that's not the case.
As he put it, "Something is off."
Raghuram Rajan flags India FDI drop
Rajan called the lack of corporate investment over the past decade a "puzzle" and highlighted that foreign investors are pulling back, with foreign direct investment (FDI) dropping and portfolio investors heading elsewhere.
He also urged leaders to focus on creating jobs, boosting manufacturing, and improving human skills, not just chasing big numbers.
Rising oil prices and long-term subsidies could strain finances, so he suggests tackling these issues head-on for a healthier economy.