On Friday, December 12, 2014, the governor of the Reserve Bank of India (RBI), Raghuram Rajan, fired off another clever but misdirected argument, this time about "Make in India".
A few weeks beore that, he blamed various businesses and bad laws - but not public sector bankers themselves, or the RBI - for allowing bad loans to balloon.
This time he pointed out that Narendra Modi's "Make in India" campaign should be suitably modified to "Make for India". His short point was that if the "Make in India" slogan is supposed to mean pursuing export-led growth, that will not be easy because of slow global growth.
"Indeed in the last decade, even as China developed on the back of its exports to industrial countries, other emerging markets flourished as they exported to China. Emerging markets now have to rely once again on domestic demand."
While this may be correct in a narrow, immediate sense, it is an irrelevant argument from the policy perspective.
Manufacturing for exports or for domestic markets are merely outcomes of the way the government manages the economy. If the economy is mismanaged, specific policies that try to boost either of them will not work.
Text: Debashis Basu, Business Standard
Image: RBI Governor Raghuram Rajan speaks during a seminar on India's growth trajectory at the FICCI Auditorium in New Delhi.
Image courtesy: PTI