The central bank estimates that the GDP growth in the current year will be less than government estimate of 7 per cent.
The former RBI governor said that rising inequalities should be the primary concern of the Central government.
Rajan, who now teaches at Chicago Booth School of Business and once served as chief economist of the International Monetary Fund, was recently named as the second most likely to get the BOE job.
Former RBI Governor Raghuram Rajan spoke about the challenges and dispensation awaiting the next Union government.
Subbarao who spoke on a wide array of topics concerning the present financial situation also vocally supported the proposed Financial Resolution and Deposit Insurance Bill.