Ex-RBI chief: No policy paralysis

Former RBI governor YV Reddy on Saturday said there is no policy paralysis in Indian economy, but there are policy difficulties, as forming them is now a complex process.

Former RBI governor YV Reddy on Saturday said there is no policy paralysis in Indian economy, but there are policy difficulties, as forming them is now a complex process.

He said the challenge before India is to equip itself with adequate policy tools to cope with the uncertain prospects around a pessimistic outlook in the global economy.

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“Special efforts are needed to restore 9-10% annual growth rate in output and domestic savings should be restored to pre-economic crisis levels and it should be enhanced to make-up for the possible difficulties of obtaining net foreign savings on an assured basis in future” he said at the Prem Bhatia Memorial Lecture.