RBI chief Raghuram Rajan said Asia's third-largest economy is being hampered by a drop in public and private investments.
Rajan's colleague in the ministry, Economic Affairs Secretary Arvind Mayaram, also expressed hope on Thursday that the central bank would vote for growth.
Panagariya also stressed that India must continue the liberalisation of its top tariff rates and the country should not revert back to import substitution.
'The three tycoons I deal with in the first chapter -- Ambani, Mallya and Adani -- in their own way represent the change that has come over India.' 'Of the three of them, Mallya is the most fun. He was terrific.' 'And I don't say that because I tell the story in the book of his golden toilet.'
The rupee on Monday ended lower by 23 paise to close at an over two-week low of 67.31 against the US currency.
Former Finance Minister P Chidambaram had said he was "disappointed and profoundly saddened" by Rajan's decision.
His team has projected a higher growth of 6.1-6.7 per cent in the next fiscal.
He will be the first bureaucrat to head the central bank in almost five years.
Highly-placed sources in the government say that none of the senior ministers had any inkling of Patel's resignation
Reserve Bank of India Governor Raghuram Rajan had said recently that there was "no need" to set up a separate bad bank to deal with stressed assets of public sector lenders.
Raghuram Rajan, who was Chief Economic Advisor in the Finance Ministry before taking over as RBI Governor on September 4, is scheduled to announce the next mid-quarter policy review on December 18.
Speaking at the Delhi Economic Conclave in New Delhi, Reserve Bank of India Governor Raghuram Rajan said the central bank will come out with a discussion paper next week with regard to distressed borrowers and rising non-performing assets.
When he ended his Test career, he held the following Test records: Most Tests (125). Most consecutive Tests (106). Most runs (10,122). Most hundreds (34). Most scores of 50 or more (79). Most hundred partnerships (58).
Former President A P J Abdul Kalam felicitated the six winners.
The RBI targets inflation at 6 percent by January 2016 and 4 percent for 2017/18.
Rajan has a great track record abroad.
'India's economic fundamentals are much too strong to be affected by his resignation,' says B S Raghavan.
Finance Minister expects rate cut by RBI.
In 2013, India suffered its worst currency crisis in more than two decades but has regained the confidence of foreign investors in part after its current account deficit has narrowed sharply and its foreign exchange reserves hit a record high
The mid-year analysis lowered the growth projection for the current financial year to 5.7-5.9 per cent from 7.6 per cent estimated earlier.
The core inflation is down and there is a need to push growth.
India's consumer price inflation dropped to 5.4 per cent in June
'When a soldier becomes a king, he better be a king. He should now just forget the past and move beyond continuity. He should catch the potential of India's moment and play a leader's role,' says Vallabh Bhansali of Enam Group.
The policy will be presented in the backdrop of rising inflation.
Arun Jaitley had proposed to set up a Public Debt and Management Agency.
Jaitley was reacting to a question by CNBC TV18 on Rajan's remarks last week.
"We did not abuse RBI governors," says Chidambaram.
Subbarao said he would be "ok" if a sovereign bond issue in foreign currency is done once just to test the waters, but cautioned against using the instrument regularly.
Financial services firm AnandRathi analysed the key points of the policy soon after it was announced.
An official said that people in the government were aware of the benefits as well as the drawbacks of issuing overseas sovereign bonds, and there will be consultations with all stakeholders.
Rajan encouraged the Indian-American business community to get involved in the 'nitty gritty of the implementation process,' saying such involvement was not difficult especially since the Indian government has the political will to reform.
For 2015-16, IMF pegged India's growth rate at 7.5 per cent.
'This is not Ahmedabad Gymkhana but people's house'
At Vigyan Bhavan, Prime Minister Manmohan Singh sat with silent stillness as a key economic advisor and the head of India's central bank discussed the legacy of his reforms - a legacy that speakers said was under threat because of complacency.
India's captains of industry said they were disappointed at the exit of Reserve Bank of India Governor Raghuram Rajan.
The key short-term lending rate (repo rate)has been hiked by 0.25 pc to 7.50 pc.
Most central banks across the world have around 5-7 years of tenure for the governor and deputy governors.
Patel, 55, who took over as the 24th Governor of the central bank on September 5, 2016, had the shortest tenure since 1992.
The inflation target of the RBI would be reviewed once every five years.
Rajan posed the question while speaking at the annual leadership conference in Mumbai National Association of Software and Services Companies.
© 2026 Rediff.com - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances