Reform, Perform & Transform' were the words that Prime Minister Modi used to declare his intentions for reviving the Indian economy on Independence Day this year. If you take a closer look at the current Indian government, they have made their intentions clear in putting PM Modi’s grand vision to work. Any major macro-economic changes in the country are only possible with effective fiscal & monetary policies in place.
On one hand India has a visionary in PM Modi who enabled Clean India, Skill India, Financial inclusion & Make in India, on other, the great reformer and strategist in RBI Governor Raghuram Rajan.Governor Rajan took over when Indian currency was considered as a part of the unenviable club of fragile 5, but when he is leaving, the Indian Rupee is one of the best performing currencies. Indian bonds which were under pressure due to loss of control on inflation, crossed above 9 per cent. Inflation is under control. When Rajan took the helm in September 2013, the economy was declining at an annualized rate of 2 percent on quarter, consumer prices were soaring 9.8 percent, the rupee was down 16.6 percent from the year earlier, and the current account deficit was estimated at 4 percent of GDP. He is now leaving an economy growing at a rate of 9.6 percent, inflation is down to 6.01 percent, and the estimated current account deficit is about 1 percent of GDP.
Financial Inclusion through JAM (Jan Dhan-Aadhaar-Mobile) is set to revolutionise the Indian Banking sector... [Article featured in AIBC India Watch - September 2016]
