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  1. Indian economy may grow at 6.5% for 2017-18, says former RBI Governor C Rangarajan

Indian economy may grow at 6.5% for 2017-18, says former RBI Governor C Rangarajan

Former RBI Governor C Rangarajan today said he expects that the economy would grow at 6.5 per cent for the year 2017-18.

By: | Hyderabad | Published: October 10, 2017 8:33 PM
RBI, RBI governor, C Rangarajan, economy, Indian economy, economic growth, jobs, jobs in India, economy grows jobs, GDP, GDP growth, Reserve Bank of India Former RBI Governor C Rangarajan today said he expects that the economy would grow at 6.5 per cent for the year 2017-18. (Image: PTI)

Former RBI Governor C Rangarajan today said he expects that the economy would grow at 6.5 per cent for the year 2017-18. He also said the job opportunities and economic growth of the country are inter-related. “Jobs (jobs creation) are not independent. They are related to growth when the economy grows jobs also grow. So you cannot talk off jobs separately from growth,” the former chairman of the Prime Minister’s Economic Advisory Council told PTI. “I think the possibility is that the growth will pick up in the next few quarters and one doesn’t know by and one doesn’t know by by how much.. Perhaps by the year as a whole my own estimation is the economy may grow at 6.5 per cent,” the former RBI Governor noted.

The country’s GDP growth rate was pegged at 5.7 per cent for the quarter ended June 30. Rangarajan as chancellor participated in the 7th Convocation ceremony of ICFAI University here. Replying to a query, he said though the liquidity situation is better, the RBI will have to consider many issues before deciding on the rate cut.

“Decision to lower the interest rates or not depends upon the overall liquidity in the economy and the expectations of the Reserve Bank regarding the behavioural inflation. Therefore apparently the latest decision (of not changing the benchmark lending rates) has been taken because they probably think that the inflation behaviour just not warrant a reduction in the interest rate,” Rangrajan said. He opined that as the banks are presently loaded with non-performing assets, any signal from the central bank will not yield desired affect until the position of the commercial banks improves.

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  1. Partha Bhattacharyya
    Oct 10, 2017 at 10:37 pm
    One wonders when GST will cease to drag the GDP down as it is doing with the low Diwali s reported in media circles. If the effect is longer term than expected at planning, the Government should consider reducing taxes on building material and invest in electric public transportation in a big way. At least the basic flow of goods and services will be eased and smaller companies currently threatened by widespread shutdowns after Diwali will be able to write off their losses against loans which they will need for their businesses.
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