Firstpost
  • Home
  • Video Shows
    Vantage Firstpost America Firstpost Africa First Sports
  • World
    US News
  • Explainers
  • News
    India Opinion Cricket Tech Entertainment Sports Health Photostories
  • Asia Cup 2025
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
Trending:
  • PM Modi in Manipur
  • Charlie Kirk killer
  • Sushila Karki
  • IND vs PAK
  • India-US ties
  • New human organ
  • Downton Abbey: The Grand Finale Movie Review
fp-logo
Economy to pick up by year-end as stalled projects are finally cleared: RBI
Whatsapp Facebook Twitter
Whatsapp Facebook Twitter
Apple Incorporated Modi ji Justin Trudeau Trending

Sections

  • Home
  • Live TV
  • Videos
  • Shows
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Health
  • Tech/Auto
  • Entertainment
  • Web Stories
  • Business
  • Impact Shorts

Shows

  • Vantage
  • Firstpost America
  • Firstpost Africa
  • First Sports
  • Fast and Factual
  • Between The Lines
  • Flashback
  • Live TV

Events

  • Raisina Dialogue
  • Independence Day
  • Champions Trophy
  • Delhi Elections 2025
  • Budget 2025
  • US Elections 2024
  • Firstpost Defence Summit
  • Home
  • Business
  • Economy
  • Economy to pick up by year-end as stalled projects are finally cleared: RBI

Economy to pick up by year-end as stalled projects are finally cleared: RBI

FP Archives • December 21, 2014, 00:46:45 IST
Whatsapp Facebook Twitter

India’s economy will pick up by year-end thanks to the start-up of billions of dollars worth of stalled resource projects and a good monsoon season that will bolster agricultural production, the Reserve Bank of India’s chief said on Tuesday.

Advertisement
Subscribe Join Us
Add as a preferred source on Google
Prefer
Firstpost
On
Google
Economy to pick up by year-end as stalled projects are finally cleared: RBI

India’s economy will pick up by year-end thanks to the start-up of billions of dollars worth of stalled resource projects and a good monsoon season that will bolster agricultural production, the Reserve Bank of India’s chief said on Tuesday.

The Reserve Bank of India is due to review monetary policy on October 29, with a rising pace of inflation bolstering odds for another central bank interest rate hike even as the economy stumbles through its worst crisis since 1991.

STORY CONTINUES BELOW THIS AD

“The correct question is: are you going to raise rates or not? The answer is: I’m not going to tell you,” Raghuram Rajan told an academic audience at Harvard Business School in Cambridge, Massachusetts.

More from Economy
Inflation likely to be a big focus area for budget 2024, say sources Inflation likely to be a big focus area for budget 2024, say sources Explained: Will the Bank of Japan break tradition and raise interest rates? Explained: Will the Bank of Japan break tradition and raise interest rates?

He later said that he believed India’s economic growth would start to pick up in the fourth quarter after a commission gave the green light to scores of resource projects that had been put on hold during a sweeping government review of transparency and environmental policy.

[caption id=“attachment_1167001” align=“alignleft” width=“380”] ![Reserve Bank of India Governor Raghuram Rajan. Image courtesy PIB](https://images.firstpost.com/wp-content/uploads/2013/10/Raghuram_Rajan380PIB.jpg) Reserve Bank of India Governor Raghuram Rajan. Image courtesy PIB[/caption]

He said about half of the $115 billion worth of stalled projects had been cleared.

“The effects of that clearance will show up toward the end of the year. So growth will start picking up because these large projects will start coming back onstream,” he said.

He did not give a forecast for fourth-quarter growth.

“The second piece of good news is the monsoon has been very good … with a bountiful harvest, and with the associated activities like animal husbandry, poultry, also picking up, you can see a lot more value in the rural areas, which will help sentiment and growth,” he said.

STORY CONTINUES BELOW THIS AD

India’s economic growth has slowed sharply in recent years from around 8 percent per year between 2002 and 2012 to about 5 percent in 2012-13, while its current account deficit has ballooned and inflation has risen.

Worries over the rising pace of inflation had already led Rajan to surprise markets last month with an interest rate hike of 25 basis points.

Rajan said that investors were quick to blame structural dysfunction for India’s economic troubles, but that the issues were more likely to do with the unwinding of stimulus in the wake of the global financial crisis, policy reviews stalling projects, and a spike-up in Indian demand for gold.

“There’s a lot that is going on to fix these medium-term problems,” he said.

“If you are an outsider looking at India, learn to filter out both the irrational exuberance and the excessive pessimism. We’re subject to both. You will become manic-depressive if you follow our moods.”

STORY CONTINUES BELOW THIS AD

He added that the question of using interest rates to address inflation was more complicated in India than in the United States.

“In the U.S. you know there is a large interest rate-sensitive sector that is going to be affected when you raise interest rates … But what if you have a large part of the country that is not connected directly to the financial system?” he said, referring to India’s massive rural population.

Reuters

Tags
RBI Interest rates Raghuram Rajan Indian Economy infra projects
End of Article
Written by FP Archives

see more

Latest News
Find us on YouTube
Subscribe
End of Article

Top Stories

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

Russian drones over Poland: Trump’s tepid reaction a wake-up call for Nato?

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

As Russia pushes east, Ukraine faces mounting pressure to defend its heartland

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Why Mossad was not on board with Israel’s strike on Hamas in Qatar

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Turkey: Erdogan's police arrest opposition mayor Hasan Mutlu, dozens officials in corruption probe

Top Shows

Vantage Firstpost America Firstpost Africa First Sports
Latest News About Firstpost
Most Searched Categories
  • Web Stories
  • World
  • India
  • Explainers
  • Opinion
  • Sports
  • Cricket
  • Tech/Auto
  • Entertainment
  • IPL 2025
NETWORK18 SITES
  • News18
  • Money Control
  • CNBC TV18
  • Forbes India
  • Advertise with us
  • Sitemap
Firstpost Logo

is on YouTube

Subscribe Now

Copyright @ 2024. Firstpost - All Rights Reserved

About Us Contact Us Privacy Policy Cookie Policy Terms Of Use
Home Video Shorts Live TV