Mumbai: Former Reserve Bank of India Governor Raghuram Rajan has expressed concern over India's fiscal deficit figures, stating that it is the likely reason behind the slowdown in Indian economy. He also criticised the government over its populist decision-making which failed to focus on economic growth.
Addressing an audience during his OP Jindal lecture at Brown University, Rajan said the uncertainty surrounding the overall economic vision of government is one of the reasons behind India's slowing economy.
"India has slowed considerably from the go-go years before the financial crisis, but even from the 9% growth in the first quarter of 2016," he said.
At present, the country is facing a serious demand crunch coupled with a slump in macro numbers. It is worth noting that the country's growth slipped to a six-year low of 5% in the April-June quarter and is not likely to improve much in the next quarter.
