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Raghuram Rajan suggests three-pronged strategy to push economic growth

18 Dec 2012 Evaluate

To push growth, which is estimated to decline to 5.7-5.9% in the current fiscal, chief economic advisor Raghuram Rajan has suggested a three-pronged strategy, which includes ‘a good confidence inducing budget, speeding up clearance for projects and capital market reform'.

While briefing the mid-year economic analysis, which was tabled in Parliament on December 18, Rajan said ‘we are at the end of the beginning and can take more steps to boost the economic growth.’ He said that the GDP growth may show improvement in the second half  of this fiscal to 6 per cent from 5.4 per cent in the first half  driven by factors like improved business confidence, corporate profitability, better industrial output numbers and moderating inflation.

While expressing his views on capital market reforms, Rajan said we have to take the number of measures like to strengthen the financial infrastructure, ability of equity market to finance infrastructure requirement, vibrancy of equity market and to improve the capital bond market.

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