Jalan said at a seminar on "Mid-Term Review of Indian Economy" organised by Assocham here on Tuesday that "the medium-term economic outlook is much better than any one expected." Jalan said the GDP was expected to grow at 6-6.5% in 1999-2000. "Things look good. Macro economic indicators are quite good. Better than we expected."

However, Jalan warned against getting complacent because of the positive outlook. "I rejoice at what is happening but we should not be complacent, and undertake an agenda for the future." Jalan also stressed on the need to create new financial intermediaries to give a fillip to financial-sector reforms. There was a need to develop market on the basis of good institutions for achieving high growth rate. He said the RBI was working on creating new institutions in the financial sector for intermediation. "We need new financial intermediaries and will accomplish it over a period of time," the RBI governor said.

Jalan said that when things are good it is time to undertake some basic reform measures. "We now have a window of opportunity as the economic circumstances are ripe. We are not fire fighting any more," he said. This really is the time for action on basic issues, he said.