Implementation holds the key to India’s rapid growth: Rajan

India’s weakness lies in implementation, stated the former governor of Reserve Bank of India (RBI). He said this during Mumbai launch of 'I do what I do', a popular line of Raghuram Rajan and now the title of his latest book. During the launch, he addressed lot of issues that were of concern during his career and is of concern for the country now. Replying to the query on 9 per cent GDP growth, he said that if we are unable to achieve 9 per cent, then we have to figure out the reason for not achieving it.

He went on to add that India as a country has lot of potential and tremendous capabilities but the weakness lies in implementation. “We talk, we talk… and we don’t do,” Rajan added. He is known for not boasting about Indian economy even at the time when India was CRITICAL COMMENTS

The former RBI governor said India’s growth fell below 6 per cent in the first quarter of this financial year due to demonetisation and otherfactors

India's GDP growth slowed to a three year low of 5.7 per cent in April-June quarter of this financial year

growing over 7 per cent, during his tenure. He goes on to add,“There are periods when we have done (things) and those are periods of tremendous achievements and growth.” He strongly believes the need for the country to do it and not just make false claims.He added, “There has to be a sense that we can do, not in terms of false pride but a sense of national purpose.” The country needs to aim and keep its focus fixed on the economics. “Focus on the economics and try to achieve the target in 5-10 years,” stressed Rajan. He admitted that demonetisation is one reason the country is below 6 per cent growth rate. He added, “Demonetisation is a blip and hopefully we do not have such surprises in the future.” He maintained that the cost of demonetisation is more than the benefits.

Commenting about economies around the world, he said that geo-politics would influence the economies more than monetary policies. He said that there are too many strong leaders in the world and all of them flex their muscles. “They need to show that they are great leaders. So, that raises the potential for conflicts. We hope better sense prevail,” he added.

Addressing on the immediate requirement of the country, he said, that the country needs to look at providing quality health care system and education. He thinks lack of this will dome the future of the children. The government should look at it. According to Rajan, such initiatives will boost the economy as well.