Former Governor Yagya Venugopal Reddy of the Reserve Bank of India spoke better coalition governments for the economic growth of the country because in the last three decades, they have given India a better economic growth than the majority of the governments.

Reddy said, "It is interesting that the highest economic growth in India was between coalition governments between 1990 and 2014. In a way, on the basis of consensus, a coalition government in Indian conditions gives better economic results than any strong (full majority) government."

Referring to India's payment crisis in 1991, Reddy said, "The greatest achievement of that period was that despite the unstable political conditions, they made a common political consensus for those steps that were needed to be taken and its Successfully managed."

He was speaking at America's leading think tank Hudson Institute. Reddy was Governor of Reserve Bank from 2003 to 2008.

He said that the world economic crisis of 2008 is not yet to be over.

Reddy said, "Surely the situation has improved in the short term, but there are still question marks in the medium term."

He said that he sees significant changes in geopolitical conditions in the next 10 years. In the current process of globalization of capital, many governments believe that globalization has curbed their ability to make policies according to the expectations of the people.

Reddy said, "Now we are in search of a new balance between global and national, state and market, finance and non-finance. This quest continues."

He said that demographic and technological change in the next 10-15 years is also a matter of concern for environmental issues and these three topics are the biggest challenge before the global economy.

In response to a question, the former governor said that insolvency and refusal is a good step in the code of inability and everyone is convinced of it.

(Click here for Android APP of IBTN. You can follow us on facebook and Twitter)

Share This News

About sharing