Rise of billionaires in India: Not so good for the country

Today, many people talk about shining India and newspapers and magazines write about Indian billionaires. It shows the growing economical strength of India but it is not so good altogether.

According to Raghuram Rajan, a former chief economist of IMF and current economic advisor to the Prime Minister, there is no problem with wealth creation but a disturbing fact about Indian billionaires is that there are so many billionaires whose wealth came from their “proximity to government.”

Currently, a professor at the University of Chicago’s Booth School of Business, in an interview with Times of India, Raghuram Rajan shared his views about Indian economy. He said, "If you look at the areas where we have so many billionaires, many of them are not software entrepreneurs, it's things like land, real estate, natural resources and areas that require licences."

He said that this would lead to an “Oligarchic capitalism like Mexico” and would shut down competition and result into slow down of the country’s economy which would eventually put Indian democracy in jeopardy.

Mr. Rajan also talked about “privatization by stealth” which means that in some areas the government could not successfully establish itself resulting into more control of the private sector and this is not a good thing for the government.

Mr.Rajan also expressed his frustration over India’s presence in the G20 summit saying that India does not know what to specifically achieve from its presence in the G20 summit.