RBI Governor urges political parties to pass key economic bills

Reserve Bank of India (RBI) Governor Raghuram Rajan on Wednesday urged political parties to pass key economic bills for the betterment of the country.

Addressing the Delhi Economic Conclave 2013 on the theme'The Agenda for the Next Five Years', Rajan said:"A stable government post-elections cannot be taken for granted...it would be dangerous for parties to postpone necessary legislations with the idea of passing the legislation post-election. Post-election politics may become even more challenging for whoever assumes power."

He also said putting large and stalled projects back on track is essential to avoid fiscal slippages.

"It will benefit the economy if Parliament passes key bills and if current authorities take action to improve growth and fiscal health, including raising diesel prices to market level and eliminating other poorly targeted subsidies," Rajan said.

"We are seeing some glimmerings of stronger growth. But its too early to say we have certainly hit bottom. But I am hopeful that (growth) would be around five per cent," he said.