C Rangarajan, who served as the Governor of RBI and Chairperson of the Economic Advisory Board, told of anxiety in leading the actual steps in an interview with TOI.
Quotation: There was a decision taken by RBI in 1991 which added the momentum of reform.
Can you identify the main and how they fate? Reserve Bank of India (RBI) and I am very involved and related to reform.
From the decision to devalue the rupee for reform in the monetary, banking and foreign exchange sectors, the changes we introduce have reached the test of time.
The most important change is the elimination of the treasury ad hoc bill problem system by the government to the RBI and thus giving up the automatic monetization of the fiscal deficit.
This can indeed be considered as the first step towards administration of autonomy to the RBI in connection with monetary policy behavior.
Read the full story at 30 years of reform on TOI plus in all areas, initial changes are followed up by many other actions, all in the spirit of the same liberalization.
Since 1991, we have a convenient payment situation.
The level of economic growth also took to a much higher level, although a decrease in growth rates recently was a related problem and rethinking.
When did you learn about historical steps? I am part of the decision-making process.
In adopting various steps, we know we take risks.
However, we feel this is needed and sure we will succeed.
Also read “We changed trade policies in eight hours in interviews with TOI, Montek Singh Ahluwalia remembered how the government moved nimbly to make fundamental structural changes, with PMO not asking experts.
Quotes: What do you think for the historic decision 1991 – political will or reality of the economic crisis? Is the policy maker anxious about the steps? I have written about tension and anxiety while undergoing a two-stage devaluation.
The decision to have it in two stages and entrust it to the RBI is a new feature.
The code word for the exercise ‘hop, pass and jump’.
The delivery of gold which in fact the previous reform had an anxious moment when the gold van that brought gold to the airport had to stop, of course very short of them, because of some difficulties.
Also read for the bullet byte reform again, said Uday Barkid training and reskilling, the digital revolution can change India to the 1991 world office gliding in the fate of the Indian economy.
It was Indian years taking the main step of transformation to the New Order.
This background is probably a foreign exchange crisis which is a field that needs to be focused by the government in the next year? The 1991 reform agenda is a change in paradigm.
Today we don’t need a paradigm change.
We need to see individual sectors and see which requires reform in terms of creating a competitive environment and increasing efficiency.
The electricity sector, financial system, governance and even agricultural marketing requires reform.
But we need more discussion and consensus buildings.
Time and sequencing are also very important.
For example, the best labor reform is introduced when the economy is up.
Seeing the latest discussions about agricultural marketing reform, the best action is now possible to leave these steps for each country to decide whether they want this law or not.
It will set a stage for the experimental economy and farmers themselves will be able to see the best solutions for various plants and conditions.
A few years ago there was talk about India to an economy of $ 5 trillion.
We today are the economy of $ 2.7 trillion.
To achieve a $ 5 trillion goal, India needs to grow at 9% per year for at least five years.