Indian management graduates have a lot to contribute to economics, politics, and governance: Dr. Bimal Jalan at IMI

In his wide-ranging lecture, Dr Jalan talked about several issues related to Indian politics, the economy and the corporate sector.

The difference between corporate management and management of the economy is same as the difference between micro and macroeconomics, he said. He discussed this issue from two perspectives: domestic and external. The talk demonstrated the importance of recognizing the inherent trade-offs in any situation, whether for a company or for an economy. Governors of RBI have often been vexed by the present and real trade-off between growth and inflation. Policies that promote growth often have inflationary effect. For the industrialist, growth is more important but for the buyer prices matter more, he explained.

Welcoming Dr Jalan, IMI Director Dr. C. S Venkata Ratnam said, We are both privileged and delighted to have in our midst today such an eminent personality as Dr Bimal Jalan, as well as our esteemed chairman Shri R P Goenka who has always provided unstinting support for the development of our institute.

Dr. Jalan highlighted the importance of bringing down the revenue deficit, which is a constituent of the overall fiscal deficit of the government. He emphasized the challenges of financial sector development and the crucial role charted for financial and other regulatory agencies: There is a thin line between regulation and control, he stressed.

In addition to this, he also shared his views on other external issues including sudden appreciation of rupee, management of exchange rate including the flexible exchange rate regime in India, the free flow of capital /management of capital flow and the status of foreign exchange reserves and overall management of trade.

Dr. Jalan concluded with an idea covered in his recent book Indias Politics: A View from the Backbench. There are three pillars of the government: the judiciary, the bureaucracy, and Parliament; today, the importance of politics has grown into the micro and macroeconomics of the country due to the emergence of coalitions. The emergence of small parties, their switching support and the increasing role of regional parties have only added to the uncertainty in Indian politics. Managing the economy under such circumstances becomes more challenging and difficult. In addition, the life expectancy of coalition governments too has shortened, adding to the enormity of the challenge, he opined.

Ending his lecture on an inspirational note, Dr Jalan said, Indian youth and management graduates like you have a lot to contribute to economics, politics, and governance.