Mumbai, Aug 6: Former Reserve Bank of India governor Raghuram Rajan said on Thursday that overly focusing on what sovereign rating agencies think can take one's eyes off what needs to be done for the economy.
"It is also important to convince both domestic and international investors that after the crisis associated with the pandemic is over, we will return to fiscal responsibility over the medium term, and the government should do more to convince them of that," Rajan told the Global Markets Forum.
India was placed under one of the strictest lockdowns in the world in late March for more than two months to stem the spread of the coronavirus, but cases have continued to rise steadily since the government eased restrictions in June, stymieing hopes of an economic recovery.
The government has announced several initiatives to help the poor and small- and medium-size businesses, but actual cash outgo from the government's measures has been estimated at just about 1% of GDP.
Several attribute the fiscal prudence to fear of a downgrade after Moody's cut India's rating and outlook in early June followed closely by a change in outlook from Fitch.
The central bank on its part too has reduced the key lending rate by 115 basis points on top of the 135 bps last year and is widely expected to cut rates by another 25 bps later on Thursday.
"The RBI and government have certainly been cooperating, but it seems like it is elsewhere, the ball is in the government's court to do more," Rajan said.
He said the RBI needs to focus on whether credit is reaching the stressed areas of the economy and also if the viable firms were able to access credit and not the unviable ones.
"And I think that's where it has to focus its attentions, because resources, as you well know, are limited in India today."
Recently analysts, however, have cited the growing possibility the RBI may prefer to pause and cut rates only at its October meeting.
Government officials too have suggested the possibility of any more fiscal stimulus being announced, would only come in the second half of the fiscal year, once a recovery has taken root and coronavirus cases have peaked.
"What India should focus on at this point is protecting its economic capabilities, so that when it has dealt with the virus it can go resume activity in a reasonable way. That should be the focus," Rajan said.
"And if it does that, there is no reason why the rating agencies will not see that as an appropriate policy".
Comments
Who is RAMA ?
Answer : he the king of ayodhya.
is he human being
Answer : yes.
how come an human being can become GOD.
my dear hindu brother, please understant the concept of GOD,
rama cannot save sita from kidnapping then how he will save you??
rama need army to capture ravana then how he will become GOD.
Rama born and died, so you think GOD also born & die.
if there is so many gods then there is no justic...same as indian political party one want to pull the leg of other to get power..
Who is GOD ?
The Most Concise Definition of God:
The most concise definition of God in Islam is given in the four verses of Surah Ikhlas which is Chapter 112 of the Qur’an:
"Say: He is Allah,
The One and Only.
"Allah, the Eternal, Absolute.
"He begets not, nor is He begotten.
And there is none like unto Him."
What does Islam say about ‘god-men’?
India is often called the land of ‘god-men’. This is due to the abundance of so-called spiritual masters in India. Many of these ‘babas’ and ‘saints’ have a large following in many countries. Islam abhors deification of any human being. To understand the Islamic stand towards such pretenders to divinity, let us analyze one such ‘god-man’, Osho Rajneesh or RAMA.
Let us put this candidate, ‘Bhagwan’ Rajneesh, to the test of Surah Ikhlas, the touchstone of theology:
i) The first criterion is "Say, He is Allah, one and only". Is Rajneesh one and only? No! Rajneesh was one among the multitude of ‘spiritual teachers’ produced by India. Some disciples of Rajneesh might still hold that Rajneesh is one and only.
ii) The second criterion is, ‘Allah is absolute and eternal’. We know from Rajneesh’s biography that he was suffering from diabetes, asthma, and chronic backache. He alleged that the U.S. Government gave him slow poison in prison. Imagine Almighty God being poisoned! Rajneesh was thus, neither absolute nor eternal.
iii) The third criterion is ‘He begets not, nor is He begotten’. We know that Rajneesh was born in Jabalpur in India and had a mother as well as a father who later became his disciples.
God does not become a human being:
God does not take human form:
Some may argue that God does not become a human being but only takes a human form. If God only takes a human form but does not become a human being, He should not possess any human qualities. We know that all the ‘God-men’, have human qualities and failings. They have all the human needs such as the need to eat, sleep, etc.
The worship of God in human form is therefore a logical fallacy and should be abhorred in all its forms and manifestations.
That is the reason why the Qur’an speaks against all forms of anthropomorphism. The Glorious Qur’an says in the following verse:
"There is nothing whatever like unto Him."
GOD is beautiful, GOD is Merciful, GOD is Loving his creation based on his good deeds.
GOD want human being to live in this earth happly and cooperate each other in bad time.
one important thing GOD want that he want him to worship alone. he is supreme
dont add idol, photo, animal, stone, humans, sun, star etc.
all belong to HIM.
hope you will find the truth before you die!!!
Dear Advocate Sir,
Saying is not enough sir, All courts need concrete evedence to prove and to discharge the verdict.
Please provide the concrete evidence to get the verdict in favor.
We ask advocate Vaidyanathan to respect his post and constitution by not giving incorrect statement. We ask him the base he say that babri masjid was constructed by razing temple. Where is the proof. He is throwing ball in darkness. He is betraying his oath taken while receiving lawyer certificate that he will say truth only. Dear Vaidyanathan, please dont misguide the court and show the evidence. How about the home you are staying. What will be your response if I say that it was constructed demolishing church or gurudwara or masjid.
Add new comment