BENGALURU: Blaming lower investment rate for the declining growth, former RBI Governor C. Rangarajan on Wednesday called for quickening credit disbursement by banks and speedy implementation of stalled projects to get economy on a high-growth path.
"We need to create proper investment climate. The decline in investment rate to 27.4 per cent from a high of 38 per cent in fiscal 2007-2008 is one of the causes for the slowing growth rate," Rangarajan said at a function here.
Explaining the factors for the slowdown in Gross Domestic Product (GDP) to 5.7 per cent in the first quarter (April-June) of fiscal 2017-18, the former Reserve Bank of India chief called for adopting multipronged strategies to revive the economy.
"Several things need to be done. Fast-track stalled projects. Banks should quicken credit payments and initiate discussions with captains of industry on stepping up private capital infusion," said the noted economist in a lecture at the inauguration of Bengaluru's Dr B.R. Ambedkar School of Economics.
Lauding the then Prime Minister Manmohan Singh for high growth rate, Rangarajan said the former had brought about a paradigm shift in the country.
"History will record that Singh had brought about a paradigm shift in this country with 8-9 per cent GDP growth under his leadership for six years," asserted Rangarajan.
Calling for improving teaching standards, the former RBI Governor said higher education should not become a monopoly of few.
"Quality of education is important. Courses and syllabi must be updated. Good teachers are also important. Technology helps teaching. Modern-day teacher should be able to blend his skills with those of others. A good teacher communicates, but a great teacher inspires," Rangarajan said.
Singh had inaugurated the academic session of the newly set up state-run school of economics in the city.
"It is a privilege to share the dais with Singh. I have worked with him," Rangarajan added.