Jagdish Bhagwati lauds PM Narendra Modi for reforms initiatives, compares him with Obama

NEW DELHI: Economist Jagdish Bhagwati has drawn a parallel between the spate of Ordinances issued by the Narendra Modi-led government and the executive action that US President Barack Obama had taken to push reforms.

Bhagwati, who was delivering the Madhavrao Scindia Memorial Lecture in the capital on Tuesday, said that Prime Minister Narendra Modi is a US style politician and he could not "think of a better leader in any party right now".

"Modi can do more and is temperamentally attuned to do so. He is in a position of greater advantage than Manmohan Singh who was leading a minority government," Bhagwati told the gathering which included Singh. The Columbia University professor said that after 1991, when former prime minister Singh had ushered in reforms, 2014 is the next cusp of revolution under Modi’s leadership.

He said that while both Modi and Singh rose from modest families, what sets them apart is that Modi, unlike his predecessor Singh, can move much faster and more comprehensively since he enjoys a huge majority. "In 1991, things were moving in second gear. In 2014, Modi put them in third gear," Bhagwati added.

On Modi, Bhagwati said, "We don’t have inflexibility on the part of the PM. He is willing to experiment as he did in Gujarat with trade liberalisation, etc., as chief minister."

Although disappointed by the Budget, Bhagwati said Modi could move on reforms such as scaling up direct foreign investment in sectors such as multi-brand retail. He said that all reforms need not take place through the budget and incremental changes can take place beyond that.

He praised Modi for not having an "excruciating patience for things", which he said was a big problem in Indian culture. "People are happy not doing anything. Modi wants to move ahead and not stand still…We have a little change of pace (now)," Bhagwati said.

The economist, however, voiced concern over social issues involving bodies like the Rashtriya Swayamsevak Sangh. Bhagwati said it may not derail the development agenda in the short run, but "the party has started telling people privately over such statements… PM should be saying more things to keep these statements from capturing the imaginations of people".

Bhagwati also stressed the need to make science and education a part of the general agenda and bring it to the forefront.