No policy paralysis,but complexities remain: Y V Reddy

Overall,he added,policy headroom available for many developing economies is limited in the current global economic environment.

India’s economic growth,which was around 9 per cent for few years before the global crisis,slumped to a near decade low of 6.5 per cent in 2011-12 due to various global and domestic factors.

“…there are significant challenges for India to achieve 9-10 per cent growth rate under evolving conditions of global economy in the short-term and,of course,in the new normal over the medium to long term,” Reddy said.

He said that given the economic situation in advanced countries,India should make efforts to position itself prominently in the emerging markets and increase its trade relations with them. “Economic activities in developing countries in the global economy are likely to increase significantly and hence trade among developing countries is likely to grow faster than trade between advanced and developing economies,” Reddy said.

He also suggested that India should design its policy tools in such a manner to deal with uncertain prospects of global economy in the short term.