The immediate challenge to faster growth is to restore stability to the currency markets.
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The NPAs of banks stood at over Rs 3 lakh crore as on December 2014.
India is more insulated to Fed-related volatility than other emerging markets due to its better economic fundamentals
Rajan warned against waiting to act until inflation expectations become entrenched, but also said the Reserve Bank of India would overlook temporary spikes in inflation.
NPA issues in the banking sector, standoffs in Parliament denting the reform momentum and limited space on the fiscal side are among the major concerns for investors.
Lauding the pro-reforms approach adopted by Reserve Bank of India Governor Raghuram Rajan, industry body Confederation of Indian Industry on Thursday expressed the hope that the central bank would shift towards an expansionary monetary policy by cutting interest rates to stimulate growth.
'There are lots of low hanging fruits and often no real impediment to plucking them.'
RBI's current Deputy Governor Urjit Patel got 3-year extension in January.
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.
Captains of the industry, including Adi Godrej and Anil Ambani, were among the early birds from India Inc to cast their votes in the financial capital.
Former Reserve Bank Governor Raghuram Rajan said India will still remain a lower middle country if the potential growth rate remains at 6 per cent annually without any rise in population by 2047 (Amrit Kaal) and will be reaching the end of the demographic dividend by then. Speaking at a programme organised by Manthanon on Saturday, the economist said if the country does not grow faster, it will grow older (demographically) before it gets richer, which means there is the burden of an aging population to deal with also at that point. Rajan said the GDP growth in India for the past two quarters was in the region of 7.5 per cent and if one looks at the labor force participation, it is very low and when it comes to female participation, "it is the lowest in the G20".
The S&P BSE Sensex was up 241 points at 26,867 and the Nifty50 gained 68 points at 8,239.
India needed more specialists within government
Everything seems to be falling in place for the new RBI governor but there is a need to prepare for the imminent tapering by the Fed.
In the mid-quarter review on December 18, the Reserve Bank left key policy rates unchanged but said it will hike interest rates if inflation does not subside.
Providing access to unbanked areas in the country has been high on the agenda of RBI, as almost 40 per cent of the population doesn't have a bank account.
RBI Governor Raghuram Rajan wanted to improve training for staff, through initiatives such as sending them to other central banks for short stints.
Monetary transmission has been an issue for the Indian banking sector.
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RBI is scheduled to unveil its credit policy on June 3.
India is gearing up to introduce a six-member monetary policy committee that would vote on interest rates.
Reserve Bank of India (RBI) Governor Raghuram Rajan on Tuesday cautioned against extrapolating the issue of alleged graft charges in a public-sector bank to the entire public sector banking system.
RBI governor Raghuram Rajan says, laws must be tightened for freeloaders.
Experts applaud RBI governor RAghuram Rajan for his good work.
According to him, since India has a low fiscal deficit, a low current account deficit and lower inflation, there is no need for being too dependent on foreign money for growth.
The RBI chief was speaking to researchers at an analyst call.
The government plans to inject a total Rs 70,000 crore into the lenders over four years
Raghuram Rajan has described the fall in reserves as dip in valuation with appreciation of dollar against other currencies
Raghuram Rajan is said to have informally written to select policymakers and experts, to curb 'unnecessary' speculation over his future at RBI.
Reserve Bank of India (RBI) governor Raghuram Rajan says global markets are at risk of a "crash" should investors start bailing out of risky assets created by the loose monetary policies of developed economies.
RBI Governor Raghuram Rajan expressed anguish at the banks' reluctance to pass on benefits of the earlier rate cuts.
Mr Swamy has written letters to the Prime Minister's Office asking for Mr Rajan's services to be terminated.
Inflation has remained a major concern.
Rajan also said weak results from India's corporate suggested final demand is yet to pick up strongly.
After Raghuram Rajan leaves, the world for the succeeding RBI governors will be distinctly different.
RBI wants the lending rates to be determined by the market.
The central bank gave 11 entities licences to start payments banks.
Former Finance Minister P Chidambaram said he was "disappointed and profoundly saddened" by Rajan's decision against a second term, but was not surprised by the development
He cautioned however that these are the early signs and one should not start celebrating.
Urjit Patel's reappointment will raise market hopes that Rajan, will also be offered an extension when his tenure ends in September.
Rajan added "many" market participants were convinced that India could hit the RBI's target of bringing down consumer inflation to 6 percent by January 2016.
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