PTI
Mumbai
RBI Governor Raghuram Rajan has said India should restrain itself from being “too ambitious” at a time when the world is full of uncertainties and instead focus on sensible policies to ensure a sustainable economic growth.
The Indian government has been working hard to fasten the GDP growth and aspiring to take it to the double-digit mark from the current 7.5 per cent in the medium term.
It has, however, adhered to key targets like the fiscal deficit number and also made inflation-targeting a key objective for the central bank.
Rajan said the world is growing “extremely slowly”, with the factors differing from one country to other and termed notions of a de-coupling of growth between industrial countries and emerging markets as “illusory”.
“Easy and unconventional monetary policy in industrial countries could increasingly be a part of the problem,” the academic-turned-central banker said and reiterated this creates problems around capital flows for emerging markets.
He called central banks around the world to “start thinking more internationally” and stressed on the need to “start discussing new rules of the monetary policy game in the international setting.” As such a goal will take years, an emerging country like India should focus on macro-stabilisation, building buffers and reducing vulnerabilities, Rajan said.
