Revive stalled projects to accelerate growth, former RBI governor Rangarajan says

Former governor of the Reserve Bank of India C Rangarajan on Friday said the Indian economy was passing through a phase of relative low growth. He said the government should revive stalled projects and fulfill public investments promised in the Union budget to accelerate growth. 

Delivering the Sr Helen Vincent Endowment Lecture at Stella Maris College in Chennai, Dr Rangarajan said the role of public investment has become even more crucial with private investment being weak at the moment. "Such investment should not be viewed as just expenditure but should help in asset creation," he said Stock Market Trading Tips

But for sustained long term growth, an improvement in savings and investment rates were the only answer, according to Rangarajan. 

On an impending global currency war post the recent devaluation of the yuan by China, Rangarajan said the situation was dependent on what China would do in the coming months. "If they push the yuan down substantially, it can lead to a currency war. But as of now, China is cautious," he said Financial Astrology Tips

Estimating India's growth to be 7.2% during 2015-16, Rangarajan said this was due to a set of favourable factors. "There has been a fall in crude oil prices and with oil accounting for 30% of our import bill in value terms, it can help contain the current account deficit." 

He added even the monsoon deficit this year was not as bad as it was feared. "The monsoon deficiency is only 10% though in some parts like Telangana, the deficiency is more. There are indications of green shoots in investment, but we are yet to see a strong pick up in investment," he said Himanshu Tiwari Astrologer Blog