Amid rising doubts over the declining value of the rupee and widening CAD, the Chief Economic Advisor and RBI Governor designate Raghuram Rajan said that there is no magic wand to solve country’s economic challenges overnight and will endeavour to deal with them one at a time. Raghuram Rajan said that at present, there are various challenges for Reserve bank of India (RBI) like rupee depreciation, banking financial inclusion and prevailing economic downturn, but there are undoubtedly solutions to many of the problems and RBI will tackle with them step by step.
Raghuram Rajan will be the 23rd Governor of the Reserve Bank and will succeed Duvvuri Subbarao who will leave office on September 4. Rajan will take new RBI governor position at a time when the domestic economy is struggling with slowdown. All the macro-economic indicators have deteriorated with current account deficit (CAD) widened to a record high of 4.8 percent of GDP in the FY14 and also domestic currency depreciated to a record low of over 68.50 against the US dollar. Further, Indian economic growth also slowed down to four year low at 4.4 percent in Q1 FY14. Besides combating with the key economic issues like rupee depreciation and high CAD, Rajan will also have to take a call on continuing with RBI's practice of mid-quarter policy review every 45 days, which was initiated by D Subbarao.
Raghuram Rajan will be the 23rd Governor of the Reserve Bank and will succeed Duvvuri Subbarao who will leave office on September 4. Rajan will take new RBI governor position at a time when the domestic economy is struggling with slowdown. All the macro-economic indicators have deteriorated with current account deficit (CAD) widened to a record high of 4.8 percent of GDP in the FY14 and also domestic currency depreciated to a record low of over 68.50 against the US dollar. Further, Indian economic growth also slowed down to four year low at 4.4 percent in Q1 FY14. Besides combating with the key economic issues like rupee depreciation and high CAD, Rajan will also have to take a call on continuing with RBI's practice of mid-quarter policy review every 45 days, which was initiated by D Subbarao.
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