India changed from 'taking advice' to 'giving advice' to the World Bank: Economist Jagdish Bhagwati

Indian-American economist Jagdish Bhagwati on Friday said that India’s economic situation has undergone a complete transformation. The country has shifted from "taking advice" from institutions like the World Bank to now "giving advice" to them.

"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 at the Kautilya Economic Conclave in Delhi on October 4.

Bhagwati also praised Prime Minister Narendra Modi's leadership. He stated that Modi took charge at the right time when India was being held back by inward-looking policies.

"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. 

Bhagwati noted that India is full of talented individuals, but the system needed change. He added that the Prime Minister emphasized this from the beginning.

Bhagwati shared an earlier conversation with Prime Minister Modi, recalling how he asked the PM what message he wanted to convey. Modi replied, "Building a bus stop only needs cement, but I also want the conductor to treat the poor with respect." Bhagwati noted that this thoughtful perspective deeply impressed him, saying he had never heard anyone, not even from Cambridge, express such an idea.

"Once, I asked him (PM Modi) what message he wanted to convey. In his response, the PM 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.

Jagdish Bhagwati is known as the intellectual father of India’s 1991 economic reforms. 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.

Bhagwati has received many prestigious awards, including the Order of the Rising Sun, Padma Vibhushan, the Frank Seidman Distinguished Award in Political Economy, and Switzerland's Freedom Prize.