India’s Entire System Needed Change, Fortunate That PM Modi Stepped in at Right Time: Jagdish Bhagwati

India’s economic situation has completely transformed, Indian-American economist Jagdish Bhagwati said at the Kautilya Economic Conclave in Delhi on Friday. “In the old days, the World Bank used to tell India what to do, but now India tells the World Bank what to do. We have completely arrived at a new age,” he said.

Bhagwati is widely regarded as the intellectual father of the Indian economic reforms of 1991. He is a University Professor of economics and law at Columbia University and a Senior Fellow in International Economics at the Council on Foreign Relations. The 90-year-old is one of the few professors in American academia to have a chair named after him while still teaching at the university. He is one of only 10 scholars who hold the title of University Professor at Columbia University.

“Leadership is key, and we must look to the Prime Minister. India was held back by inward policies and poor production quality. The entire system needed to change, and we were very fortunate PM Modi stepped in at the right time,” he said at the conclave.

India is full of gifted people, but the system has to move, Bhagwati said. “The Prime Minister made this clear from the start. Once, I asked him what message he wanted to convey. He said, ‘Building a bus stop only needs cement, but I also want the conductor to treat the poor with respect.’ I had never heard anyone, not even from Cambridge, think like that—it endeared me to him,” he said.

Bhagwati is married to Padma Desai, also a Columbia economist and Russia specialist.

“When I went to see him (Modi) as chief minister, he remembered my wife Padma was in the audience and made sure to greet her. That personal touch is amazing. For me and Padma, Prime Minister Modi’s vote is for life. I have similar stories from many women he’s encountered. Women’s issues have always been important to him, and I could write a whole book on it,” the economist said at the event.

The third edition of the Kautilya Economic Conclave is being held from October 4 to 6. This year’s conclave is focusing on themes such as financing the green transition, geo-economic fragmentation and the implications for growth, and principles for policy action to preserve resilience among others.

Both Indian and international scholars and policymakers will discuss some of the most important issues confronting the Indian economy and economies of the Global South. Speakers from across the world are taking part in the conclave.

“We are on an onward track and there is nothing that bothers me right now when I look at what is going on. It seems to me that trying to advise this government is very difficult because most of what is being done is very good and proper,” Bhagwati said. “A lot of young people are coming up and there is a great deal of enthusiasm in the country as well. I never thought I would see this in my lifetime and I am glad that I have lived long enough to witness this transformation and feel good about it.”

The Kautilya Economic Conclave is being organised by the Institute of Economic Growth in partnership with the ministry of finance.