Raghuram Rajan said India is in the midst of a growth recession with signs of a deep malaise in the Indian economy. Rajan called for reforms to liberalise capital, land and labour markets, and spur investment as well as growth. He also urged India to join free trade agreements judiciously to boost competition and improve domestic efficiency.
Raghuram Rajan, former Governor of Reserve Bank of India (RBI) said, "India is in the midst of a growth recession". Reacting on the extreme centralization of the present government, Rajan said that extreme centralization and the absence of empowered ministers result in reforms only when the PMO focuses on them.
The aim to become $5-trillion-economy by 2024 can only be met when the real growth of at least 8-9 per cent per year takes place from now. However, Rajan said that it seems unrealistic.