Ex-Governor Chidambaram says the RBI was pressured to display inflated growth estimates; the BJP responds

Congressman and former finance minister P Chidambaram came under fire from BJP leader Amit Malviya for “lecturing” the BJP-led Central government on “institutional integrity” when he was personally “pressuring the RBI to paint a rosier picture of the economy.”

In his book “Just A Mercenary?: Notes from My Life and Career,” former RBI Governor D Subbarao reportedly quoted P Chidambaram, the finance minister in the United Progressive Alliance (UPA) government, as saying that the RBI was “pressed to paint a rosier picture of the economy, with inflated estimates of growth and inflation.” This information was reported by Moneycontrol.

“P Chidambaram, finance minister in the UPA, pressed the RBI to paint a rosier picture of the economy, with inflated estimates of growth and inflation, former RBI Governor D Subbarao writes in his latest book,” BJP leader Amit Malviya said in response to D Subbarao’s statement regarding P Chidambaram on the microblogging site X. However, PC berates us for lacking institutional integrity.

“Reserve Bank as the Government’s Cheerleader?” is the chapter title. Governments, according to Subbarao, are insensitive to the RBI’s needs.

“It will be incorrect if the RBI takes action on a government request to increase projections in an effort to improve public opinion. Moneycontrol cited Subbarao as stating, “The RBI has to maintain its credibility as its monetary policy stance is based on estimates of growth and inflation.”

The previous governor of the RBI said that while India’s GDP is high due to its vast population, which is a factor in production, the country would still stay impoverished with an estimated $3,300 per capita. India’s GDP is expected to grow to $5 trillion, making it the third largest in the world.

In the next three to four years, based on present trends, our economy will grow to become the third biggest. It’s not a reason to celebrate, but to rejoice. Since people are a component in production, a high population contributes to a large GDP. However, it still makes us, on average, a poor nation,” Subbarao said.