Rajan’s policies, not DeMo, slowed growth: NITI V-C

New Delhi: Days after an RBI report said the demonetisation of 2016, was not only flopped but also had an adverse effect on the economy, NITI Aayog vice-chairman Rajiv Kumar on Monday blamed the policies under former RBI Governor Raghuram Rajan for the economic slowdown in the country.

Kumar said non-performing assets (NPAs) in the banking sector kept rising when Rajan was RBI Governor. “The declining trend for the last six quarters starting 2015-16, when the growth rate was as high as 9.2%, was not a result of demonetisation. The growth was declining because of the rising NPAs in the banking sector,” Kumar said.

 If you look at the growth rate statistic, it came down not because of demonetisation, but was simply the continuation of a trend. Growth rate had been falling for six quarters,’

-Rajiv Kumar, Niti Aayog vice chairman