<section class="jsx-2404185057 article__reader__magByLine">This has been pointed out by former RBI governor and veteran policymaker C Rangarajan, who has also backed &ldquo;a spirit of dialogue and accommodation&rdquo; that must prevail between the two entities.</section>
<section class="jsx-2404185057 article__reader__content set1">
<p id="2">&ldquo;As the developments in 2018 and 2019 have shown, the pressure of the government on the RBI can come on issues unrelated to monetary policy or even regulation,&rdquo; Rangarajan, who served as the central bank&rsquo;s governor from 1992-1997, says in his latest book &lsquo;Forks In The Road: My Days at RBI and Beyond&rsquo;.</p>
<p id="3">The government and the RBI were engaged in a bitter spat during this period, which ultimately led to the sudden resignation of the&nbsp;then governor Urjit Patel.</p>
<p>Rangarajan, who is one of&nbsp;the country&rsquo;s most respected policymakers, says it is not unreasonable to expect the government and the RBI to have differing views on monetary policy or regulation. &ldquo;But what is required is to demarcate in advance the areas in which each will have the final say. The new monetary policy framework is a good example,&rdquo; says the former RBI governor who has spent decades shaping policy in various capacities.</p>
<p id="6">Rangarajan, who was also&nbsp;the chairman of the Prime Minister&rsquo;s Economic Advisory Council (PMEAC) under Manmohan Singh, says Atmanirbhar should not result in pure import substitution. &ldquo;This is neither economically sound nor is it desirable. An open economy with some limitations is still the best route to follow,&rdquo; says Rangarajan.</p>
<p id="8">He also stressed on the need to focus on social cohesion and calm for promoting investments. &ldquo;Just as peace and harmony are needed globally for promoting international trade, it is equally true&nbsp;that domestically &lsquo;animal spirits&rsquo; favouring investment thrive only when there is social cohesion and calm. This is a non-economic factor that we should not ignore,&rdquo; says Rangarajan.</p>
<p id="10">The veteran also said the immediate focus of policymakers in India must be to raise the rate of growth of the economy. Stating that achievement of a $5-trillion economy is a good shortterm aspirational role, Rangarajan says this will take a minimum of five years of sustained 9% growth.</p>
<p id="11">&ldquo;Even then, at the end of it, India&rsquo;s per capita income will be only $3,472 and we will still be classified as a lower middle-income country. To be classified as a developed country, the per capita income will have to be at a much higher level and that will take more than two decades of strong growth to achieve it,&rdquo; says Rangarajan in his book.</p>
</section>

Govt attempt to pressure RBI guv via board in '18-19 was unwise: Rangarajan

English

Spanish(español)

Bengali(বাঙালি)

Gujarati(ગુજરાતી)

Hindi(हिन्दी)

Malayalam(മലയാളം)

Tamil(தமிழ்)

Telugu(తెలుగు)

Download your favorite titles and read them offline, anytime and anywhere

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines and newspapers from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from thousands of best-selling titles.

Gift your loved ones with a Magzter Gift Card instantly and give them the freedom to read their favorite magazines from {{magCount}}+ best-selling international titles.

Name

Please fill out this form if you need any help regarding publishing your content on Magzter

Since we launched, Magzter has been committed to partnering with global organizations to provide the greatest possible newsstand technology & service to our customers. Whether you are looking to offer magazine subscriptions to your customer database or just want to learn more, Magzter is committed to helping your business grow. To find out more, please fill out the questionnaire below: