India does not need big bang reforms: Rangarajan

NEW DELHI: C Rangarajan, Chairman of Prime Minister's Economic Advisory Council ( PMEAC) said that big bang reforms of the type of early 1990s will not happen again. Now is the time for incremental change, he said at an economic summit here.

Rangarajan said that there have been incremental changes in last 6 months. Rangarajan said the action taken by the government to speed up project clearances since September would be visible in the current fiscal. He advised the government to take more adequate measures to achieve higher growth in the economy.

Speaking on infation, Rangarajan said, "Inflation has come down, but it is well above comfort level." He highlighted the fact that India needed low levels of inflation to sustain high growth. Wholesale Price Index (WPI) for the month ended March moderated to 3-year low of 5.96 per cent against Reserve Bank's projection of 6.8 per cent.

"I believe the Indian economy has bottomed out," said Rangarajan.

Yesterday, Rangarajan while releasing the Economic Review for 2012-13, said: "Rangarajan said while releasing the Economic Review for 2012-13 here."

Economic growth rate had slipped to decade's low of 5 per cent in 2012-13 mainly on account of the impact of the global financial woes.

Rangarajan hoped that the GDP estimate for 2012-13 would be revised upwards from 5 per cent estimated in February by the Central Statistical Organisation (CSO).

Rangarajan said the action taken by the government to speed up project clearances since September would be visible in the current fiscal. The PMEAC has projected higher inbound FDI at $36 billion during 2013-14. The net FDI inflow in 2012-13 was $18 billion ($26 bn inbound and $8 bn outbound).