India's economy has some bright spots, a number of very dark stains: Raghuram Rajan

Mr. Rajan said that he would love to see a five- or ten-year vision for India as well as a plan for the kinds of institutions and frameworks the government intends to set up

The Indian economy has "some bright spots and a number of very dark stains" and the government should target its spending "carefully" so that there are no huge deficits, noted economist and former RBI Governor Raghuram Rajan said on January 23.

Known for his frank views, Mr. Rajan also said the government needs to do more to prevent a K-shaped recovery of the economy hit by the coronavirus pandemic.

Generally, a K-shaped recovery will reflect a situation where technology and large capital firms recover at a far faster rate than small businesses and industries that have been significantly impacted by the pandemic.