India Registers 7.5% Growth Despite International Slowdown: RBI Governer

BHUBANESWAR: RBI Governor Raghuram Rajan on Saturday said despite drought and slowdown in the international market scenario, India registered a growth of 7.5 percent due to macro stability.

“Despite drought and slowdown in the global market scenario, India recorded an increase of 7.5 percent that suggests that we have macro stability, which is desirable and need to continue to be preserved,” said Rajan while addressing at Mahtab Memorial Lecture here.

He said India needs to grow, but that should be sustainable.He also said that India’s economy is relatively safe against the global volatility provided that it continue to maintain the macro stability.

Earlier delivering a lecture on ‘India: Prospects & Challenges’ at the ‘Odisha Knowledge Hub’ lecture series here, the RBI Governor said even though the economy is in the midst of recovery, there is still works to be done as some sectors are experiencing stress.

“The economy is in the midst of a recovery. But, there is still works to be done. Some sectors are doing quite well like auto industry while some are experiencing stress including the agriculture sector which faced two successive droughts. They still need some pickup,” said Rajan.

He said while ‘License Raj’ is over, now the time to end ‘Inspector Raj’.

He also batted for lighter regulations for small-scale industries and easier business environment for startups in the country that would help to create more jobs.

Rajan said that the regulatory norms should provide the scope for ‘easy entry to and exit from’ the enterprises along with ‘basic safety net’ for entrepreneurs and workers.

 He emphasised on capacity enhancement of people to derive benefit from reforms and improving skill base in society.