As a matter of advise to the country?s policymakers, former RBI governor YV Reddy has said India should have its own rebalancing policies rather than following the west in their moves in the aftermath of global financial crisis.
?It would be wrong to apply the same lessons out of the global financial crisis in our country as we should have own lessons and corrective actions in our policy making to develop our own economy and financial sector,? said Reddy. He was in Mumbai to receive the sixth MR Pai memorial award on Thursday.
Reddy said as the world is recovering from the unprecedented financial crisis since 1932, there is too much focus on the issue financial stability by the affected nations and if followed blindly would neglect the issue of domestic development.
?Unless done carefully, the whole process of rebalancing end up over regulations and unlevel playing field,? he cautioned. Financial sector is too powerful and policy intervention need to be calibrated, he said.