Underlining the need for good economists to frame sensible policies, Reserve Bank India (RBI) governor Raghuram Rajan has said that the inability to get quality talent may be hurting country's policy-making process.
"In our country, there is a tremendous need for capable economists. I see that everyday in my work. There is a need in Delhi, in Mumbai and all over the country. We have lost a generation of economists," Rajan said.
Rajan said, "The kind of economics we need is based on a good understanding of the fundamentals of economics such as price theory and general equilibrium, which is the hardest concept to understand." He added: "A lot of policy-making is done without understanding the general equilibrium which is often the key contribution that an economist can make to the dialogue."
The Governor made the remarks after inaugurating the Meghnad Desai Academy of Economics in Mumbai on Monday.
Though it was a closed-door event, the organisers issued a statement on Tuesday quoting the governor.
At the event, Rajan said there is a need for "rigorous fundamentals" in economics based on blood, sweat, tears and toil. Rajan, an academic-turned-central banker, also stressed on the need for academic institutions to focus equally on research as well.
He also promised all help from RBI to the newly started institute. Apart from Desai, the Indian-origin British economist, the academic board of the institute comprises Goldman Sachs Chief India economist Tushar Poddar, IMF deputy director Mangal Goswami, executive dditor of Mint newspaper Niranjan Rajadhyaksha and Birla Group economist Aditya Ranade.