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Wednesday, February 4, 2015

Maintaining Growth in India: R. Rajan

Raghuram Rajan, Governor of the Reserve Bank of India, writes on basic factors that may shape up the Indian growth process in future. He broadly focused on three issues: deepening regional and domestic demand, strengthening India's macroeconomic institutions including his central bank, and finally, joining in the fight for an open global system. More specifically, he talked about:

  • Infrastructure development (for having links to domestic and international markets)
  • Human capital development (developing skills that are valued in the labor market and  the creation of jobs in firms that have an incentive to invest in training) 
  • Fiscal prudence (controlling budget deficits and monitoring the quality of budgets)
  • Low inflation (while ensuring optimal conditions for growth) 
  • Financial stability (no to asset price boom)
  • Attracting more FDI while keeping India's interest intact 
  • Searching more natural resources from abroad, and if necessary, using multilateral institutions for that 
  • Playing strong role in the international monetary system   


Most of these excellent points that he pointed out may be relevant for the Bangladesh case also. A worth reading for Bangladeshi policymakers.

Link for the article.

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