We have to create biz environment but then biz has to run on its own footing: Raghuram Rajan
Updated: Sep 18, 2015 02:17:28pm
Mumbai, Sept 18 (KNN) India must resist special interest pleas for targeted stimulus, additional tax breaks and protections, subventions and subsidies - all of which have historically rendered industry uncompetitive, government over extended and the country incapable of regaining its rightful position, RBI Governor Raghuram Rajan said today.
While we understand the difficulties industry has and will work as hard as we can on improving the business environment, he added.
He said, “We have to create business environment but then business has to run on its own footing because it creates effective business.”
Rajan was addressing at the CK Prahalad Memorial Lecture here today.
Speaking about the Banking System, the RBI Governor said, “It is not clear India needs a so-called "bad bank" to deal with non-performing loans. It would be preferable to push banks to clean up balance sheets themselves.”
He said “We would favour adding capital to India's cash-starved asset reconstruction companies. A speedy bankruptcy code is needed to give creditors more ability to handle distress. There is need to clean up the banking system of distressed assets so that it can fund growth again.”
India appears to be an island of calm in an ocean of turmoil. What is different and how it can we be assured it will continue. We have to expand the sustainable growth potential. That means continuing to implement reforms that government and regulators have announced. That's the only way to get sustainable growth potential up, he said addressing on Indian Economy.
On Global Economy, he said, “Industrial economies are still struggling with a few exceptions. If we look around the world today, it would be fair to say it does not paint a pretty picture. Uncertainty about growth in US and as well as the world is what propelled the Fed to stay on hold yesterday. Our fellow BRICS have all got big problems.”
On Monetary Policy, Rajan opined that, “We have to keep inflation low not just today but also in the future. Monetary policy will accommodate to the extent there is room.” (KNN Bureau)
While we understand the difficulties industry has and will work as hard as we can on improving the business environment, he added.
He said, “We have to create business environment but then business has to run on its own footing because it creates effective business.”
Rajan was addressing at the CK Prahalad Memorial Lecture here today.
Speaking about the Banking System, the RBI Governor said, “It is not clear India needs a so-called "bad bank" to deal with non-performing loans. It would be preferable to push banks to clean up balance sheets themselves.”
He said “We would favour adding capital to India's cash-starved asset reconstruction companies. A speedy bankruptcy code is needed to give creditors more ability to handle distress. There is need to clean up the banking system of distressed assets so that it can fund growth again.”
India appears to be an island of calm in an ocean of turmoil. What is different and how it can we be assured it will continue. We have to expand the sustainable growth potential. That means continuing to implement reforms that government and regulators have announced. That's the only way to get sustainable growth potential up, he said addressing on Indian Economy.
On Global Economy, he said, “Industrial economies are still struggling with a few exceptions. If we look around the world today, it would be fair to say it does not paint a pretty picture. Uncertainty about growth in US and as well as the world is what propelled the Fed to stay on hold yesterday. Our fellow BRICS have all got big problems.”
On Monetary Policy, Rajan opined that, “We have to keep inflation low not just today but also in the future. Monetary policy will accommodate to the extent there is room.” (KNN Bureau)
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