NEW DELHI (Reuters) - Reserve Bank of India Governor Raghuram Rajan said fiscal discipline would be key for India to achieve sustainable growth in the coming years as rising cost of funding would make it difficult for the central government to rely on bank deposits for financing.
"(Bank) deposits will not continue to be cheap, while the government cannot continue to pre-empt financing at the scale it has in the past if we are to have a modern entrepreneurial economy," Rajan said at an event organised by India's anti-trust regulator.
"This is yet another reason why fiscal discipline will be central to sustainable growth going forward," he said.
(Reporting by Manoj Kumar; Writing by Himank Sharma; Editing by Prateek Chatterjee)
