Rajan's exit will not hamper India's GDP: World Bank
Agriculture growth and rural consumption is very important for India's growth story, Onno Ruhl, Country Director of World Bank said.
The news about Reserve Bank of India Governor Raghuram Rajan stepping down came as a surprise and shook the banking space.
Many industrialists, economists and politicians shared their views and highlighted that his exit was "unfortunate".
But, on Monday, Onno Ruhl, Country Director of World Bank told Zee Business, "I dont think Rajan exit is going to hamper India's global image. India has very strong record of micro economic policies. Micro economics fundamentals are very strong. Various policies frame work has been adopted recently....So I dont think its depend on one person".
"We should respect his decision. RBI itself has very strong tradition of good performance and conservative approach. Better monsoon will act as catalyst to go beyond 7.6% growth. Agriculture growth and rural consumption is very important for India's growth story", Ruhl said.
Today, World Bank released report on India development, where it said that, credit growth in personal loans will remain robust in this quarter.
"The public investment will see a surge with the increase in investments in centre and states. But, exports to remain a challenge largely due to global problem", the report added.
Further, the report mentioned that "modest 3.5% growth in agriculture will deliver 0.35% additional GDP growth. Trade may stop contracting".