Raghuram Rajan, En-Route to Exit, Gives RBI’s ‘Work in Progress’

The areas include economic growth, inflation and ensuring transmission of monetary policy actions by banks.

Outgoing Reserve Bank of India Governor Raghuram Rajan (Photo: Reuters)

Outgoing Reserve Bank of India governor Raghuram Rajan highlighted three areas that the central bank needs to work on in 2016-17, calling them “work in progress”. These include aiding economic growth, bringing inflation under control, and ensuring transmission of monetary policy actions by banks.

“While the policy actions have had positive effects, there are a number of areas which should be considered ‘work in progress’. From RBI’s perspective, three such areas continue to be important,” Rajan said in the foreword to the RBI’s annual report for the year-ended June 2016.

Despite some signs of recovery, India’s economic growth is still below the levels the nation is capable of achieving, Rajan said. “The key weakness is in investment, with private corporate investment subdued because of low capacity utilisation, and public investment slow in rolling out in some sectors,” he added.

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