The Reserve Bank of India (RBI) Governor Raghuram Rajan, while stressing that India is fairly safe from volatile global economy posting 7.5 per cent growth despite two droughts and weak international market, has said that it is 'politically difficult' to speed up structural reforms in India and while labour market reforms can boost growth, the process may draw opposition.
Highlighting the importance of structural reforms for elevating the potential of economy, Rajan who stressed on the need for cleansing the banks and checking inflation in order to ensure faster GDP growth, said that in order to bring more and more people into the workforce degree of competition and level of participation of different segments of society should be raised.
Rajan also said that there is need to ensure further growth of macro level stabilisation, the country would have to keep the inflation under control and cleanse the banks which can strengthen macro level stability and added that macro level stability; maintaining reforms would attract both international and domestic investors and spur activities.
Rajan talking on global economy and India, said that new rules need to be evolved for international monetary policy and called for the emerging markets like India to "speak up and raise their voice louder" to have a say in setting the global agenda.