Former Reserve Bank of India (RBI) Governor YV Reddy has stated that amid uncertainties in the global economic order, a sense of optimism about the future is more in India than in other parts of the world. He added that “If you talk to the global communities and analyse the outcomes of the surveys, India will be the fastest growing or the second fastest growing among all major economies”.
He said the trend towards globalisation has been stalled at a time India wants to take advantage of globalisation. There are more uncertainties in regard to global economic order than ever before. Yet, India has a better standing in the global investment community, with prospects better than most of the developing peers.
Reddy asserted that economic policies since 1991 were built on solid foundations laid brick-by-brick since 1947. “Those foundations helped India to become an emerging economic power today”. However, he also added that the substantive elements of economic policies remain the same since 1991, despite several changes in the political leadership.
Talking on the issue of independence of RBI, he said that a central bank has been created by the government, not by the Constitution. It has been created to assure people that money and finance are important, and is apolitical and added that anything 'created' cannot be independent from its 'creator'.