Dipping investments leading to slow economic growth: Former RBI Chief Dr Rangarajan
The former Governor of Reserve Bank of India Dr C Rangarajan has blamed dwindling investments for the slow economic growth rate. Speaking at an event in Bengaluru, the Chairman of the Madras School of Economics claimed that the rate of investment which was at 38 per cent in 2007-08 is now 27.4 per cent.
Stressing on the need to revive investments Dr C Rangarajan said that the creation of a proper investment climate was the need of the hour. "Lower rate of investments is the cause of declining growth rate. Several things need to be done immediately. Speedy implementation of stalled projects. Speedy implementation of stalled projects, quickening credit for the resurgence of investments by banks and intimate discussions with the people are the three key factors," he said.
Dr Rangarajan was talking at the inaugural event of Dr B R Ambedkar School of Economics in Bengaluru- where former Prime Minister Manmohan Singh was the chief guest. Hailing Dr Singh's achievements as Prime Minister, Dr Rangarajan said that history will record how he brought a paradigm shift in the country. "Under his leadership, the country achieved a high economic growth of 8-9 per cent within six years," he said drawing comparisons to the current economic growth rate with dipping investments denting its prospects.
Dr Rangarajan, a renowned economist himself, highlighted the need for research and application in economics as a field. At the inaugural event of a school of Economics, he stressed on the need to change the examination and assessment system. "Our exam system must change. Today exam is a test of memory than a means to access the critical ability of students. Assessment system should change for everything else to fall in place," he said.
The Karnataka government has allocated Rs 200 crore for the construction of Dr B R Ambedkar School of Economics- the academic year for the same was inaugurated on Wednesday with 50 students selected to study courses in Economics coupled with other social sciences.
The school is expected to be one of its kind institutions dedicated to research in the field of social sciences- especially Economics and allied subjects. Former Prime Minister Manmohan Singh who was the Chief guest at the event highlighted the need for new designs to revive the economy as well as create equality in socio-economic fields of the country.