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No magic wand to pull economy instantly from economic woes: Raghuram Rajan

07 Aug 2013 Evaluate

Chief Economic Advisor Raghuram G. Rajan said that there is no magic wand to pull the country instantly out of challenges being faced by the economy. Rajan said that the prevailing economic slowdown has posed many challenges to Indian economy and the government and the Reserve Bank of India (RBI) are working together to address these challenges.

After the announcement of his appointment as the new RBI governor, Rajan said that he was looking forward to work with the many dedicated employees of the RBI and expressed hope to deal with the existing economic slowdown. Raghuram Rajan will be the 23rd Governor of the Reserve Bank and will succeed Duvvuri Subbarao who will leave office on September 4.

Rajan will take new RBI governor position at a time when the domestic economy is struggling with slowdown. All the macro-economic indicators have deteriorated with current account deficit (CAD) widened to a record high of 4.8 per cent of GDP in the previous fiscal and also rupee value depreciated to a record low of over 60 against the US dollar. Further, Indian economic growth also slowed down to decade low of 5 percent in the previous fiscal.

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