Subsidy kills innovation, interest of people: K.C. Chakrabarty
RBI deputy governor says subsidy makes the system uncompetitive, and result in lack of transparency
Coimbatore: Reserve Bank of India (RBI) deputy governor K.C. Chakrabarty said on Saturday that subsidies killed innovation and interest of people even as leaders of various industrial sectors demanded sops to nurse their companies back to health.
In an interaction with a group of industrialists, representing textile, engineering and manufacturing sectors, Chakrabarty slammed subsidies stating that it was not serving any useful purpose. “Subsidy kills innovation and interest of people. It makes the system uncompetitive, and result in lack of transparency and sometimes even leads to scams," he said, adding that: “Nowhere in the world, business is done on subsidies".
Stating that governments also do not have enough resources to support such handouts now, he said all the governments (across the world) did not have money to give subsidies.
The RBI deputy governor also cautioned people about bitcoins, virtual currency which has risen sharply in value in the past few months, but said any regulation on it would come only after the central bank understood the subject. PTI
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