Indian economy will be in 5% growth range over the course of this fiscal: Rajan
Updated: Oct 13, 2014 02:46:50pm
New Delhi, Oct 13 (KNN) Reserve Bank of India (RBI) Governor, Raghuram Rajan expressed optimism that the country will be solidly in the five per cent growth range over the course of this year, but at the same time acknowledged the fact that recovery of the Indian economy is still uneven.
"It is still an uneven (economic) recovery, so my guess is that this quarter may be a little weaker than the previous quarter but I think over the course of this year, we will be solidly in the five per cent growth range and by next year we should be solidly in the six per cent growth range," he said while addressing an event at the Institute of International Finance in Washington on Saturday, according to a media report.
He said he is not "overly" worried about any interest rate hike by the Federal Reserve, saying the country had enough foreign exchange reserves.
Rajan said that while India has to do its basic homework, the "good news" is that there are "lots of low-hanging fruit and we got to pluck them".
"Of course the big question is why we did not do it before but I think there is an environment and there is a willingness at this point to do what it takes.
"What it means, I would caution people on, is not at this point grand-sounding announcements because that is not what we really need. We need to fix the plumbing.
"We need to do the basic stuff which will get the economy back on track," he said when asked how India will meet the high expectations that have been set by the new Narendra Modi government to revive economic growth.
Rajan said beyond 2016, the Indian economy will grow depending on what the country does over these couple of years. (KNN Bureau)
"It is still an uneven (economic) recovery, so my guess is that this quarter may be a little weaker than the previous quarter but I think over the course of this year, we will be solidly in the five per cent growth range and by next year we should be solidly in the six per cent growth range," he said while addressing an event at the Institute of International Finance in Washington on Saturday, according to a media report.
He said he is not "overly" worried about any interest rate hike by the Federal Reserve, saying the country had enough foreign exchange reserves.
Rajan said that while India has to do its basic homework, the "good news" is that there are "lots of low-hanging fruit and we got to pluck them".
"Of course the big question is why we did not do it before but I think there is an environment and there is a willingness at this point to do what it takes.
"What it means, I would caution people on, is not at this point grand-sounding announcements because that is not what we really need. We need to fix the plumbing.
"We need to do the basic stuff which will get the economy back on track," he said when asked how India will meet the high expectations that have been set by the new Narendra Modi government to revive economic growth.
Rajan said beyond 2016, the Indian economy will grow depending on what the country does over these couple of years. (KNN Bureau)
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