We Have Political Will To Undertake Financial Reform: Rajan
Rajan encouraged the Indian-American business community to get involved in the "nitty gritty of the implementation process," saying such involvement was not difficult especially since the Indian government has the political will to reform.
"Over the years, India has outgrown its institutions," Rajan was quoted as saying in the statement.
"Such institutions only worked well when we had the practice of resource allocation, which was a source of revenue. This was a time when coal could be extracted from the ground with your bare hands."
Rajan said the Indian economy can no longer work with this model, adding that just as there were drastic democratic changes that reacted to the economic slump in the past decade, institutions also have reacted.
He emphasized on the need to convert talk about change into delivering and implementing reforms, the press statement said.
Making crucial recommendations to creating a more investment-friendly market in India, Rajan said stalled projects need to get back on track and "clearance should be from capital and on ground."
He further said that complex labor laws need to be improved to benefit both employers and workers and self- certification should be allowed to eliminate the stressful and cumbersome process of inspections.
