Bengaluru, Oct 4 - Blaming lower investment rate for the declining growth, former RBI Governor C. Rangarajan called for quickening credit disbursement by banks and speedy implementation of stalled projects to get economy on a high-growth path.
"We need to create proper investment climate. The decline in investment rate to 27.4% from a high of 38% in fiscal 2007-2008 is one of the causes for the slowing growth rate," Rangarajan said at a function here.
Explaining the factors for the slowdown in Gross Domestic Product (GDP) to 5.7% in the first quarter (April-June) of fiscal 2017-18, the former Reserve Bank of India chief called for adopting multipronged strategies to revive the economy.
"Several things need to be done. Fast-track stalled projects. Banks should quicken credit payments and initiate discussions with captains of industry on stepping up private capital infusion," said the noted economist in a lecture at the inauguration of Bengaluru's Dr B.R. Ambedkar School of Economics.
Lauding the then Prime Minister Manmohan Singh for high growth rate, Rangarajan said the former had brought about a paradigm shift in the country.
"History will record that Singh had brought about a paradigm shift in this country with 8-9% GDP growth under his leadership for six years," asserted Rangarajan.
Calling for improving teaching standards, the former RBI Governor said higher education should not become a monopoly of few.
"Quality of education is important. Courses and syllabi must be updated. Good teachers are also important. Technology helps teaching. Modern-day teacher should be able to blend his skills with those of others. A good teacher communicates, but a great teacher inspires," Rangarajan said.
Singh had inaugurated the academic session of the newly set up state-run school of economics in the city.
"It is a privilege to share the dais with Singh. I have worked with him," Rangarajan added.