Economy recovering but some sectors under stress

Economy recovering but some sectors under stress: RBI governor

Bhubaneswar, May 21 (IANS) Even though the economy is in the midst of recovery, there is still work to be done as some sectors are experiencing stress, said Reserve Bank of India (RBI) Governor Raghuram Rajan on Saturday.

“Some sectors are doing quite well while some are experiencing stress and they still need some pick up — most obviously the agriculture sector which faced two successive droughts,”, Rajan said, making his address on ‘India: Prospects and Challenges’ at the ‘Odisha Knowledge Hub’ lecture series here.

He batted for lighter regulation for small scale industries and easier business environment for startups in order to foster job creation.

“Having lighter regulation is very important for small industries. While in UK, there are lighter regulations, Italy has very hard regulations. As a result, the small firms grow much faster and bigger in UK compared to Italy,” said Rajan.

Advocating easier entry and exit rules, especially for smaller companies, he said the ‘inspector raj’ has to be further relaxed.

The central bank has brought the medium enterprises in the ambit of priority sector lending, Rajan said, adding that micro-lending by both private and public sector banks has increased in the past few years.

He said infrastructure boost including connectivity will be very helpful to small industries while market linkage is another measure that is required.

Leave a Reply

Please enter your comment!

The opinions, views, and thoughts expressed by the readers and those providing comments are theirs alone and do not reflect the opinions of or any employee thereof. is not responsible for the accuracy of any of the information supplied by the readers. Responsibility for the content of comments belongs to the commenter alone.  

We request the readers to refrain from posting defamatory, inflammatory comments and not indulge in personal attacks. However, it is obligatory on the part of to provide the IP address and other details of senders of such comments to the concerned authorities upon their request.

Hence we request all our readers to help us to delete comments that do not follow these guidelines by informing us at Lets work together to keep the comments clean and worthful, thereby make a difference in the community.

Please enter your name here