The economy has to shift to the higher reform gear else it will be at risk, said Prof Jagdish Bhagwati, Professor of Economics, Law and International Affairs, Columbia University, said.

“Politics is getting difficult. You cannot win elections with just politics. Young people want results,” said Bhagwati at Exim Bank’s commencement day annual lecture.

“There are two sets of challenges before us. One is to intensify and broaden the traditional kind of growth-oriented reforms which have actually helped in reducing poverty. Two, is to improve the inclusiveness of the poor people,” he said.

FDI multi-brand retail

Studies have shown that the economic returns of foreign direct investment in multi-brand retail are really significant.

Bhagwati observed that large format stores/malls and ‘kirana’ stores can co-exist.

The Government has been sensible in picking up the multi-brand retail segment for liberalising FDI.

Agriculture

Bhagwati felt that the agriculture sector should also be liberalised. “It is disappointing that we are not doing things like using genetically modified seeds and Bt Crops.”

If you do not get the so-called ‘Frankenstein food’ (genetically modified food), then people will face problems like malnourishment, death, he cautioned.

“The choice is between being frightened about an imaginary Frankenstein and the near certainty of death. We have to study these models more carefully,” he added.

satyanarayan.iyer@thehindu.co.in

Related Topics