The Chief Economic Advisor Raghuram Rajan has said that India needs to change regulations that govern business as some of our regulations come from British times. Rajan further emphasized that things are difficult in India and we need a thorough revamping of these rules to boost the growth.
By adding further, Rajan said that the government is trying to build ways to get over the problems and accordingly has taken many measures to speed up clearances of business projects. He said that government processes can take long time, therefore new regulatory bodies like Cabinet Committee on Investment (CCI) has been set up to accelerate the process. The CCI has cleared projects worth $ 25-30 billion since January.
Regarding the macro-economic condition, Rajan said that macro-economic indicators is showing signs of improvement, with inflation coming down, it would give space to the Reserve Bank to lower the policy rates in its monetary policy scheduled on June 17. Raghuram Rajan expects Indian economy to grow by 6 percent in the current fiscal after it grew at a decade's low level of 5 percent in 2012-13.
