Raghuram Rajan says need for reforms like land titling2 min read . Updated: 07 May 2016, 11:42 PM IST
Here's a look at the some of Raghuram Rajan's statements on key issues at an ICRIER event
New Delhi: Reserve Bank of India governor Raghuram Rajan, in his speech at an event organised by the Indian Council for Research on International Economic Relations (ICRIER) on Saturday evening spoke on the topic of ‘India and the Global Economy’. But in his address as well as the question and answer session that followed, Rajan spoke on a host of issues ranging from India’s macro-economic stability, need for reforms like the land titling law, RBI’s intent to disclose the wilful defaulter list soon as well as the need to enforce even small regulations effectively to not to be construed as a paper tiger.
Here’s a look at the some of Rajan’s statements on key issues:
Need for reforms like the land titling law
Rajan stressed the importance of bringing in the good and services tax at the earliest but pointed out that meanwhile India could focus on bringing in some other structural reforms. Terming Rajasthan’s recent land titling reform an important one, Rajan hoped that other states will follow suit and bring in this legislation that will enable people to seek credit against their land holdings.
Slowdown in global economy
The RBI governor said that the International Monetary Fund has been coming with gloomier forecasts for global economic growth but the solutions seem to be restricted to fiscal and monetary policy measures as well as structural reforms in countries rather than coordinated action among countries to the problem faced by the global economy. “We don’t have a real global solution to the slowdown," he said.
Impact of slowdown on Indian economy and its exports
Prudent policies followed by Indian policy makers has ensured that India is in a better position than its emerging market peers, Rajan said adding that “A good macroeconomic policy is the first line of defence against external shocks."
“We can Make in India for India until the world doesn’t cooperate," Rajan said pointing out that India has huge domestic demand.
Bad debts in the banking system, wilful defaulters and disclosing their information
Rajan expressed confidence that the bad debt situation in the banking system has been contained. He stressed that the focus of the central bank is on reviving stalled projects rather than only brining errant promoters to task. He added that malfeasance should be punished but cautioned against grouping all defaulters together.
“RBI has neither the desire nor intent to withhold information in case of malfeasance. We are putting together a list of wilful defaulters and those defaulters against whom a case has been registered. But there are other defaulters also who have a genuine reason," he said.
Need to be seen as an effective regulator and not a ‘paper tiger’
Rajan acknowledged that some of RBI’s regulations may be outdated but stressed the need for companies to follow these regulations till the central bank updates them.
“We don’t want to be a paper tiger. It is important that everyone’s follows the regulations existent as on that date. We can’t have small regulations violated often else even big regulations won’t be followed," he said.