Prime Minister Narendra Modi told the Reserve Bank of India to think of ways to support new sectors such as space, and tourism, because a lot of work will be coming the central bank’s way once the new government takes oath.
“Abhi 100 din mai chunav mein busy hoon. Aap ke paas bharpoor samay hai. Aap soch ke rakhiye, kyonki shapath lene ke doosare din hee dhama dham kaam aane wala hai (I am busy in elections for the next 100 days. You have enough time in your hands to think. After taking oath, a lot of work will come your way,” the PM said addressing the 90th commemoration function of the Reserve Bank of India (RBI) on Monday.
PM said economic growth should be the Reserve Bank of India’s top priority over the next decade as he praised its management of the economy and the transformation of the banking system over the years.
The RBI’s inflation targeting framework has helped to keep price pressures moderate, Modi said. The central bank should look at “unique tools” to balance inflation and growth, he said.
“In the next decade, RBI should give growth the highest priority, while focusing on trust and stability,” he said.
The prime minister said the RBI’s turnaround of the banking system in the past decade was notable. The central bank should now “focus on ease in credit access for needy sections,” he added.
Modi is seeking a third consecutive term in office in elections due to kick off in three weeks time, with the economy’s performance helping to bolster his support among voters. Growth of almost 8% in the fiscal year that ended in March makes India the fastest-expanding major economy in the world. Government officials predict growth will remain fairly rapid at more than 7% in the current financial year.
The RBI has kept interest rates unchanged for six consecutive policy meetings as it tries to bring inflation down to the 4% target. Many economists predict a rate cut in the second half of the year.