Indian economic recovery uneven as some sectors under stress: RBI Governor

Zee Media Bureau

New Delhi: Indian economy has certainly picked up pace in growth, but certain sectors are still under stress making the economic recovery uneven, said the Reserve Bank of India Governor Raghuram Rajan on Saturday.

"Broadly, the economy is in the midst of a recovery... but it is an uneven sort of recovery. Some sectors are certainly experiencing stress. There is still work to be done. A good monsoon is going to be very beneficial for growth,” Busines Standard quoted the RBI Governor as he addressed to ministers and civil servants at the 'Odisha Knowledge Hub' lecture series on 'India: Prospects & Challenges'.

Rajan said recovery was visible in some sectors such as auto, but rued that agriculture needs to pick up after being hit by two successive droughts.

The central bank's focus, he said, was to create the condition for strong, sustainable growth and create more jobs. The RBI governor emphasised on the need of easy availability of credit to SMEs in order to boost job growth. 

Since small banks tend to be more comfortable in lending to the small entrepreneurs, we need to strengthen the regional rural banks and urban cooperative banks, Rajan reasoned.