Won't be euphoric if India is fastest growing large eco: Rajan
20/04/2016 18:15
The RBI Governor Raghuram Rajan on Wednesday said that India should find ways to support higher economic growth on a sustainable basis and not fritter away gains as it did in the past, said the Reuters report. Prime Minister Narendra Modi's 2-year old government is seeking to bolster an economy which grew 7.3 per cent, among the fastest growth rates in large economies, but below the 8 per cent growth needed to generate jobs for millions of Indians joining the workforce every year. Rajan said the government had created a platform for strong sustainable growth, but said it would need to ensure it stays on that path. The Reserve Bank of India governor has cut interest rates by 150 basis points since the start of 2015 to a more than five-year low, but is under pressure to ease further. "As a central banker who has to be pragmatic, I cannot get euphoric if India is the fastest-growing large economy," Rajan said in a speech to banking and finance students in Pune. "Our current growth certainly reflects the hard work of the government and the people of the country, but we have to repeat this performance for the next 20 years." Without citing specific instances, Rajan said previous governments had become too complacent by periods of high growth, saying India still remained a relatively poor country. “We cannot get carried away by our current superiority in growth, for as soon as we believe in our own superiority and start distributing future wealth as if we already have it, we stop doing all that is required to continue growing,” he added.
20/04/2016 18:15
