Economic reforms should continue, says Rangarajan

The country must continue with the reform agenda and there is still a lot to be done in the area of governance, said C. Rangarajan, former Chairman, Economic Advisory Council to the Prime Minister, C. Rangarajan, here on Saturday.

“That the economic reforms India undertook have been on the right direction is vindicated by the performance of the economy since the launch of the reforms. Economic growth in the 10-year period beginning 2005-06, despite the crisis affected 2008-09, was at an average rate of 7.7 %. However, economic growth has slowed down from 2012-13 and more recently it has touched 5.7% and the question is why?” he observed delivering the 28th Graduation Day address at Bharathidasan Institute of Management (BIM). He added that recent reforms such as Goods and Services Tax legislation, passing of the bankruptcy code and modifications in Foreign Direct Investment were good.

Stating that financing investment had taken a beating because of the poor health of banks, Dr. Rangarajan said the sharp reduction in the flow of new credit had also put prospective investors in a difficult situation.

S. Karuthiah Pandian, Director, BIM, said the institute had been consistently ranked among the top business schools in the country and had been maintaining 100% placement record for several years.

Courtesy: The Hindu