Generating jobs for the young population is one of the challenges the Indian democracy faces and “for this, we will have to keep the growth high”, Rajan said.

Growth has slowed in the recent months and one of the reasons is “we need to fix problems in the coal and gas sectors, for without energy, we do not have power and without power, we do not have growth. The issues here are not insurmountable but they need steady and determined effort,” he said.

“We also need better coordination and implementation within government to ensure projects once started will be finished on time,” Rajan said.

To raise resources for spending for the poor, the rich must play their part, he said.

Besides, he said, there was a need to broaden the tax base both by finding and penalising tax evaders and also giving them incentives to declare their income "by increasing the value and status associated with legitimacy".

"A self-assured India can play an enormously positive role in the world. We could offer an alternate view of development, one combining growth with democracy, bringing together cutting edge, innovative companies with bottom-of-the pyramid services", Rajan said.

Giving away degrees to 562 students of various post graduate management courses, chairman of the Board, Mukesh Ambani, asked the students to move up the ladder of excellence, "for bigger causes and higher aspirations" and channelise their energies to make an impact on the world.

Director IIMB Pankaj Chandra said the Institute had been allotted 110 acres here for the expansion of its campus.

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