Expressing hopes about India’s gross domestic product (GDP) growth recovery in the coming months, Former Reserve Bank of India (RBI) governor C Rangarajan has said that the economy needs to pick up very fast to be able to maintain a healthy annual growth for the financial year 2017-18. He also said that the government should take quick measures to push the economic growth.
Besides, Rangarajan has indicated that the economy has bottomed out because, for two quarters it has remained at 5.7 percent. He also noted that the economy needs to grow at 7 percent in three quarters even to have a growth rate of 6.5 percent for the year as a whole. He also pointed out that the glitches of goods and services tax (GST) may be over and some of the effects of demonetisation would also be neutralised with the new currency coming in. Therefore, he said that the growth rate needs to pick up much faster.
The former governor also suggested the need for revival of all viable stalled projects, recapitalisation of banks at the earliest and removal of impediments in the way of higher corporate investments to give a push to the economy. He also stated that one immediate thing that needs to be done is to recapitalise the banks as quickly as possible to enable them to lend more. He added that the government should meet industry bodies in small groups to find out the impediments that have come in the way of higher level of investment and try to remove them.