(LiveMint)
Former RBI Governor Raghuram Rajan has called slowdown in the economy “very worrisome” and said the government needs to fix the immediate problems in power and non-bank financial sectors and come out with a new set of reforms to energise private sector to invest. Rajan, who was Governor of the Reserve Bank of India from 2013 to 2016, also called for a fresh look at the way GDP in India is calculated as he referred to research by Narendra Modi government’s former chief economist Arvind Subramanian about overestimation of growth rate.
“There are a variety of growth projections from the private sector analysts, many of which are perhaps significantly below government projections and I think certainly the slowdown in the economy is something that is very worrisome,” Rajan. India’s economic growth has slowed to 6.8% in 2018-19 — the slowest pace since 2014-15, and various projections by private experts and the central bank estimate that the GDP growth in the current year will be less than government estimate of 7%.
