Bold reform that triggers animal spirits needed for Indian economy: Rajan

Indian economy more 'debilitated' compared to peers because of the slide in the growth over the years, says leading economist

Bold government reform that triggers "animal spirits" and implemented effectively is essential for India to come out of the Covid-19 setbacks, former RBI Governor Raghuram Rajan said on Thursday.

He also made it clear that the space for expanding the balance sheet for RBI is not "infinite", and the central bank will need to have a strong focus on monitoring inflation as it does that.

Rajan said that because of the slide in the growth over the last few years, India entered the current crisis in a more "debilitated" state as compared to its peers.

As per some estimates, economic