Thursday, 12 September 2013

"A few years ago, India could do no wrong.... Today, India can do no right," Rajan wrote in the piece.

Growth, deficit problems not structural: RBI chief Rajan

SINGAPORE (Reuters) - India's slowing economy and its massive current account and fiscal deficits are not structural problems and can be fixed with modest reforms, newly appointed central bank Governor Raghuram Rajan said on Wednesday.
Rajan acknowledged the economy will expand at a pace that will be its slowest in a decade, with annual growth this year likely to be between 5 and 5.5 percent.
In commentary published on the Project Syndicate website, he also drew an analogy between the current bearishness on the country, whose currency has barely recovered from record lows last month, to the fickle loyalties of Indian cricket fans.
"A few years ago, India could do no wrong.... Today, India can do no right," Rajan wrote in the piece.
Referring to the record current account deficit and slowing growth, Rajan said those "can all be fixed by means of modest reforms."