Economic situation of India is ‘Worrisome’, might push it down: Raghuram Rajan

Raghuram Rajan, India EconomyFormer Reserve Bank of India (RBI) Governor Raghuram Rajan has warned that the current situation of India’s economy is quite worrisome.

He also said that the country’s fiscal deficit conceals a lot and hence might push down Asia’s third-largest economy, as per the reports in an English Daily.

While addressing a lecture at Brown University he said:  “India has slowed considerably from the go-go years before the financial crisis, but even from the 9 percent growth in the first quarter of 2016.”

As per the Index of Industrial Production (IIP) data which was released by the government on October 11, on August month-on-month (MoM) India’s industrial output has contracted by 1.1 percent.

The recently appointed chief of the International Monetary Fund (IMF) said that India has failed to figure out new sources of growth and legacy problems were not resolved.

He also emphasised on the demand and investment slowdown, and liquidity crisis in the Non-banking Financial Companies (NBFCs).

He accredited it to the “Poorly executed GST roll-out and ill-conceived demonetisation”.

He also warned that the economy globally is in midst of a synchronised slowdown and its effect can be particularly felt by countries like India.

The Banking & Finance Post is an initiative of Elets Technomedia Pvt Ltd, existing since 2003.
Now, Elets' YouTube channel, a treasure of premier innovation-oriented knowledge-conferences and awards, is also active. To Subscribe Free, Click Here.

Get a chance to meet the Who's who of the BFSI industry. Join Us for 3rd BFSI Cloud & Security Summit, Mumbai and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.