Sensible Decision of the Government of India.

The editorial is well written and the decision of the Government to extend the term of Dr Subbarao for a couple of years more is perhaps an indication that it cannot afford to ignore the economy any more. The Reserve Bank despite its limitations has been fighting a lone battle to contain the inflationary pressures and maintain some semblance of stability in economic growth for the last couple of years although, both internal and external conditions have been and continue to be a major constraint. Dr Subbarao has displayed his determination to challenge the odds which he has been facing since his inception as Governor. This extension is well deserved. Hope, the Government will continue to concentrate more on the management of the economy and come out with such decisions to enable the instituitions to perform well.The present international crisis is an opportunity to attract external funds and concentrate on infrastructure development badly needed for Indian economy to grow.

from: T.V.Gopalakrishnan
Posted on: Aug 11, 2011 at 06:10 IST (The Hindu Business Line)