Congress backs Rajan, says India ‘going through a bad shape’

New Delhi : The Congress Party on Sunday backed RBI Governor Raghuram Rajan’s assertion that India has done away with the ‘ licence raj’, but ‘inspector raj’ continues to some extent, saying the country is going through a bad shape due to the new regulations brought by the BJP-led NDA regime.

“Not only is inspector raj still there, the new government regulations that have come supposedly to capture black money though they have nothing to do with black money it is bringing back the inspector raj which was there 20-30 years ago,” Congress leader Sandeep Dikshit told ANI.

“That is why you see the business is in a bad shape, black money is not being unearthed because Inspector Raj does not lead to more open and accountable business practices,” he added.

Addressing the ministers, bankers, bureaucrats and other stakeholders at the fourth Odisha Knowledge Hub in Bhubaneswar yesterday, the RBI Governor pitched for better business environment for startups.

Rajan said that regulations should be for betterment of the industry and not to discourage entrepreneurs.

He suggested a system of self-certification for the industries with some checks on the part of the authorities to prevent any misuse.

Emphasizing on the development of small and medium enterprises that require ‘hand-holding’ by the state governments and other agencies, the RBI Governor further said the Indian economy is in the midst of recovery, but some areas are still under stress. (ANI)