"The Prime Minister (Narendra Modi) has an ambitious agenda for India. The level of expectations is very high. My sense is that without thinking about major reforms of our system, we can put the economy back on track to a reasonable level of growth," he said in an interaction with the students of the Indian School of Business (ISB) here.
"We hope that in the final half of this year or by next year, we could grow to be in the sixes (six per cent GDP growth rate) and hopefully sevens by the year after. To sustain that and take it to a higher plane, we have to think about how we reform the system of fundamentals.
He felt that it should be easier for businesses to grow in terms of finance and regulations among others.
"You need to make it easy for business to grow. That means finance, regulations and skilled labour. I think the government is working on all these plans. My sense is, if we can do this and upscale the whole thing, I don't see why we cannot over time reach double digit growth," he said.
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"The truth is that the government and the RBI enjoy a free, frank and cordial relationship. We discuss many things and we find and do what is in the best interest of the country. There is discussion going on right now on a couple of things.
"One is of course a number of institutional structures that will improve the functioning of the financial sector -- for example, a financial resolution authority," he said.