'Not all critics are reasonable. Some are...': Montek Singh Ahluwalia after Sitharaman's fear-mongering remark

Former Planning Commission Deputy Chairman Montek Singh Ahluwalia has suggested that the Centre should listen to criticism and accept economic problems that need correction, but added that "not all critics are reasonable". 

The West Asia crisis has pushed up oil prices, weakened the rupee, and put pressure on the country's fiscal deficit. Several noted economists, including Surjit Bhalla and Arvind Subramanian, have warned that India needs reforms and stronger foreign direct investment inflows to sustain growth.

Don't Miss: 'India cannot afford fear-mongering': FM Sitharaman says economy is robust. Here's the proof

Bhalla earlier said the country is facing a deepening investment crisis and called it "high time for the Modi government to course correct". He also flagged slowing growth and weakening private investment sentiment.

However, days later, Finance Minister Nirmala Sitharaman asserted that the Indian economy was robust and that the country cannot afford fear-mongering.   

When asked whether critics were talking down the economy, Ahluwalia said some do overreact. "I'm in favor of government benefits from critics. And not all critics are reasonable. Some overdo it. Some are politically motivated," the noted economist said while speaking to India Today TV. "But if you are not willing to listen to the fact that there are problems, you're going to miss out on opportunities to make corrections."

"But believe me, corrections are necessary. And in a way, the government itself has said so. Even the Prime Minister, after he came back from his foreign tour, took a meeting and told all the ministries that we must accelerate reform. Clearly, there is a perception. The question is what constitutes reform," he added.

Must Read: 'Economy on the brink of a major crisis': Top agri economist wants fertiliser subsidy scrapped

Ahluwalia said the debate should focus on the quality and design of reforms. "Many times, the way a particular slogan is implemented may not actually achieve the objective that was meant or intended. And we need to be very careful that the policy is well-designed."

Asked whether criticism of the economy amounted to fear-mongering, Ahluwalia said governments had a responsibility to present a consistent economic narrative while also acknowledging structural weaknesses.

“No, no, I'm not a fear monger, but let's face it. Politics is about differing views. So, you would expect the opposition, whatever it says, it will be raising the negatives," he said. "The responsibility of the government is to put across a consistent picture of why it thinks the economy is in good shape. Now, there are some strengths with the economy, but there've also been weaknesses that we've known for some time," he added.

Must Read: 'Indian economy is in trouble': Ex-IMF economist Surjit Bhalla on what went wrong

The economist furher pointed to sluggish private investment and weak exports as long-standing concerns predating the current oil shock. "It's not just the oil price hike. For example, private investment has been low for several years. Exports have not done well for several years. So, there are problems in moving towards Viksit Bharat," he said.

Ahluwalia said the government needed to clearly articulate its reform agenda at a time when there is rising global uncertainty. "There's a lot of nervousness around the world. People with money don't quite know where to put it. We have to give a very clear message on our major policies, and this is the time to make those messages totally clear," he said.