Raghuram Rajan says Modi's re-election will boost India's transparency and democracy, benefiting relations
Raghuram Rajan, the former Reserve Bank of India Governor, said in an interview with BNN Bloomberg that the new Narendra Modi-led coalition will increase the Indian government's transparency.
He believes this change will affect both domestic and international matters and that this transparency could help improve strained relations between India and China.
Prime Minister Justin Trudeau congratulated Narendra Modi on his re-election, while emphasizing the importance of upholding the rule of law. Diplomatic ties between India and Canada reached a low point in 2023 after both countries expelled their top diplomats over the killing of a Sikh separatist leader.
Rajan suggested that Modi’s re-election will promote democracy in India.
He stated, “India truly falls back into the set of democracies and democracies often find a set of values that allow them to work better with each other. The more democratic India is, the more mutual trust there’s going to be in this kind of relationship, and it will be beneficial for both countries.”
Rajan attributed part of the diplomatic strain to the lack of checks and balances on the Indian government, which he suggested was becoming increasingly authoritarian. He noted that the ruling party's electoral setback caused Indian stocks to suffer their steepest decline in four years.
Rajan views this outcome as positive, believing it will force India to address issues like unemployment and economic distress.
“I think this is extraordinarily good news for India over the medium term because it puts checks and balances on a government that was becoming increasingly authoritarian and following the wrong course,” he said.
