Proceeds from monetisation of assets must be invested, not used to retrench debt
- The imperative of producing growth in a slowing world and politics trump conventional economic wisdom
India's chief economic advisor V Anantha Nageswaran is a solid economist but erred recently on a matter of political economy. In the course of an interview to the Economic Times, he said that when assets are monetized, the proceeds should be used to pay off debt. In the current context, the optimal use to which the money you get from selling off revenue generating assets would be investment in creating new assets, not paying off past debt.