Reserve Bank of India (RBI) Governor Raghuram Rajan, on Thursday, indicated that the country’s journey towards high single digit gross domestic product (GDP) growth trajectory in the next few years would be completely feasible, helped by the steps being taken jointly by the Central Government and the RBI.
“Our goal towards achieving a sustainable growth of 7-8 per cent is absolutely feasible. I think we can get that. We are taking steps to reach there. We have to do it in a sustainable way and which means macro stability, financial stability and creating underpinnings of growth — all of which and actions of last few weeks would help,” Dr. Rajan said while talking to the media at an event organised by FICCI Ladies Organisation in association with Akshya Pvt Ltd.
Dr. Rajan’s reaction echoes Finance Minister Arun Jaitley’s statement on growth as part of his budget speech.
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“Controlling inflation is our immediate objective,” he said adding, “right answer to containing inflation would be collaboration between the RBI and the government.
Both are working on the sides that they can effect the best. Hopefully by the end of the year we think the economy is on course to come down to a CPI inflation rate of about 8 per cent, and by the end of next year down to a level of 6 per cent,” he said.