CHENNAI: Taming inflation and reducing the current account deficit are the two immediate measures required for the Indian economy to grow, said C Rangarajan, former Governor of Reserve Bank of India.
Delivering a lecture on ‘The Indian Economy - Past Present and Future’ here on Sunday, Rangarajan traced the history of the economy of the country since 1991, the year of liberalisation. He said, at present the economy is passing through a phase of relatively low growth. “But that should not cloud the fact that for a decade since 2004-2005, the average annual growth has been 7.5 per cent,” he added. The economy underwent several structural changes over the last two decades, which made it resilient. Suggesting measures to boost the economy, he said problems in agriculture should be addressed, as most of the population depends on farming.
He said the three immediate concerns that the country faced were rising inflation, current account deficit (CAD) and fiscal consolidation. Among the medium-term requirements were improvement in agriculture and power sectors, good governance, growth, equity and a good growth environment.
His address was followed by a question and answer session with the audience.
The lecture was a part of the annual Chennai Lecture Series organised by Rotary Club of Chennai Carnatic. It was organised by the club to provide a platform for sharing ideas and addressing issues relevant to the Indian economy.