Raghuram Rajan’s key observations on The Economic Survey.
Raghuram Rajan is an Indian economist who serves as the Chief Economic Advisor to the Government of India. He was the chief economist of the International Monetary Fund(IMF). Rajan’s previous work with the Indian government includes his helmsmanship of a Planning Commission-appointed committee on financial reforms, and as honorary economic adviser to Prime Minister Manmohan Singh.
- Need to bring down twin deficits.
- Remove bottlenecks on investments.
- Need to re-balance national spending from consumption to investments.
- Need to reduce distorted subsidies.
- GST implementation will be beneficial.
- Need to reduce transaction costs for investors.
- Contain inflation through monetary & supply side measures.
- Direct benefit scheme would reduce expenditure & distortions.
- Greater fiscal consolidation & agricultural production will help RBI cut rates.
- Faster growth rate in creation of good jobs is needed.
- China, US and Japan unlikely to drag down India’s growth any further this year.
- Stuck with high oil & coal imports.
- Bringing down reliance on external funds is the best thing we can do to ensure growth.
- Can not ban gold, but we can compete with gold by offering other instruments.