The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Abhishek Jain, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur
The Global Outlook might look India as “the bright spot in the global economy”, but Reserve Bank Governor Raghuram Rajan describes this phenomenon as a case of the one-eyed man being the king in the land of the blind. The RBI Governor was speaking in the Spring Meetings of the International Monetary fund and the World Bank.
Rajan also believes that Indian economy is far from being in a satisfaction. Although he also mentioned that Indian economy is turning to the point where it could achieve what we believe is our medium-run growth potential. Because things are falling into place. Investment is starting to pick up strongly. We have a fair degree of macro-stability. We are not immune to every shock, but immune to a fair number of shocks.
He also listed out achievements on fronts like current account and fiscal deficit and said inflation has come down from 11 per cent to below 5 per cent, making room for interest rates to come down. He also mentioned that exciting stuff that Indian Government was working on be it the new Bankruptcy bill or the Goods and Services Bill(Both of which are pending in the Rajya Sabha). A new and exciting feature of mobile to mobile transfer from any Indian bank account was also mentioned.
Indian economy is often compared with China. The RBI Governor believes that we can catch up fast, provided we do right things. Currently, we are about a quarter to a fifth their size. For long, China has followed right policies and implemented them impeccably, but we should not follow them blindly we have our own strengths and we should emphasize on them. There are a lot flair and creativity in Indian economy. But this can be achieved only when our economy is backed by the proper infrastructure and supported by the right Human Capital as well. Regulatory environment of India should be conducive for the business as well