India is known to be a reforming economy but Raghuram Rajan, Former RBI governor, said that the country’s reputation remained intact amid the recent decline. The Indian governor pointed out that the country should manage bank’s balance sheets and settle down debt-ridden businesses. As well as to rebuild postponed infrastructure projects, particularly in the electric power industry and might as well to focus on exports in order to revive the economic status of India. The world’s sixth-largest economy further need to ensure a higher quality of educational systems and skill-building initiatives, so that the double-digit target economic growth could be achieved. The economic growth of India declined sharply in the previous year, as it slid down to 5.7% in the second quarter from the former 7.6% during the third quarter. This is mainly because of the cash shortage followed by the demonetization of the government on November 8 last year. The demand for consumption was reduced and many companies were dismayed to make further investments. Few economists anticipate for a sharp economic reversal in India sooner or later.
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