RBI governor Raghuram Rajan said during a banking conference that "Recovery is still uneven." While a stable government helps India to stand out among its emerging market peers, the economic recovery remains uneven amid weak industrial production especially durable consumption goods. He also noted that inflation is easing in line with the central bank's forecasts and exports are strong but there was a need for investment to pick up. "Macro-indicators are improving, but still some way to go," Rajan said. The Reserve Bank of India aims to bring consumer price inflation down to 8 percent by January 2015 and to 6 percent by January 2016.
The governor pointing out the world economy said world economy is picking up hesitantly but Geo political risk abounds from Ukraine, Middle-East. He also noted that lower oil prices are helping consuming countries. "Falling oil prices gave India a good opportunity to scrap diesel subsidies. A lower oil price means a lower current account deficit, lower oil subsidies and lower inflation," the RBI governor said.
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