"Therefore I believe that, now that the monsoon has also been good, the food prices may come down rather than further rise," the former governor of the RBI told PTI.
On demonetisation, he said adequate preparation by the central bank could have reduced the pain which people had to undergo on account of ban on high value notes last November.
In an interview to CNBC-TV18's Latha Venkatesh, C Rangarajan, Former Chairman of PM's Eco Advisory Council, Ila Patnaik of NIPFP, Ashima Goyal, Professor at IGIDR and Himanshu, Prof of Economics at JNU spoke about India's 70 year growth story and the road ahead.
"Initiative for merger should come from banks themselves and there must be felt a need for it. Therefore, the world over, the larger banks are coming into cooperation," he said.
"The possibility of the banks reducing lending rates is not very much in the horizon. There may be some small adjustments. But I do not see the lending rates coming down because the banks do feel the pressure of the stressed assets," he told PTI here.
What you really want is that environment provided in India is so good that others also come to India, says former RBI Governor C Rangarajan.
Describing the Union Budget for 2017-18 as "a fairly routine Budget", former RBI Governor C Rangarajan today said changing the road map to reach the fiscal deficit target of 3 percent over the year will make a mockery of the Fiscal Responsibility and Budget Management (FRBM) Act.
Deepak Parekh, Chairman, HDFC is disappointed that there was nothing on corporate tax, except a proposal to cut corporate tax rate for MSMEs (Micro Small and Medium Enterprises) having revenues less than Rs 50 crore to 25 percent.
"Though the situation in India with regard to replacement of jobs by machines is not alarming, it should be noted for future considerations," Rangarajan said at the Seventh Foundation Day Lecture at the ICFAI Foundation for Higher Education (IFHE) here.
As people across the country continue to come to grips with the government's surprise demonetisation move, former RBI governor C Rangarajan has hailed the move, saying black money accumulation has to be prevented.
The government‘s clampdown on black money by voiding Rs 500 and Rs 1,000 notes could think wealth destruction could be pretty meaningful, according to a former Reserve Bank Governor.
At the launch of former journalist Sanjaya Baru's book '1991: How PV Narasimha Rao made history' here last night, Rangarajan also said Rao's Finance Minister and former PM Manmohan Singh had also played a pivotal role in rolling out the reforms but did not get due credit for his endeavours.
On rate cuts, Rangarajan says the impact of monsoon needs to be seen. If vegetable prices decline, then the RBI could look at cutting rates before December
Another former Governor, C Rangarajan agrees with Subbarao, saying that just like the government's five year plans, a five year Governor term is also vital.
Watch the interview of C Rangarajan Former Governor, RBI on CNBC-TV18, in which he shared his views on 25 years of reforms in India as well as reforms undertaken by the Modi government.
This day, 25 years ago, India let its currency fall roughly 20 percent in a single day. This was followed by an economic reforms package that finally unschackled India from the grip of socialism.
The Rajan era showed promise of resetting India‘s financial sector. The repositioning of the RBI as primarily an inflation-fighting central bank was the first tenet of Rajanomics. Rajan did it with all the paraphernalia.
C Rangarajan, former Chairman of the Prime Minister‘s Economic Advisory Council and ex-Governor of the Reserve Bank, believes the government may not have fully provided for the implementation of the recommendations of the 7th pay commission
At a meeting with his state counterparts, Union Finance Secretary Ratan Watal said the classification is losing its significance after abolishing the Planning Commission and states could also deliberate on the same.
While rising food inflation driven by pulses has been a never-ending discussion topic in India's macroeconomic policy-making, this time around all hell has broken loose with tur dal prices rising to more than Rs 210
Former Reserve Bank Governor C Rangarajan says prices of pulses and vegetables are likely to rise even now.
As part of the Inside Chennai series, CNBC-TV18 spoke to Former RBI Governor and the Chairman of Madras School of Economics C Rangarajan.
C Rangarajan, also a former chairman of the Prime Minister's Economic Advisory Council C Rangarajan, said RBI might have been "hesitant" in making any policy changes in the midst of the monsoon.
Former Reserve Bank of India governor Chakravarthi Rangarajan criticised a government move that proposes to give majority control of a monetary policy committee (MPC) to its nominees, and questioned how the central bank would successfully meet its inflation targets without control over it.
After Moody‘s upgraded India‘s ratings outlook from stable to positive, while reaffirming its rating at Baa3, former Reserve Bank of India governor and former prime minister economic advisor C Rangarajan said rating agencies would be â€œcompelledâ€ to upgrade the country‘s ratings once GDP growth hits 8 percent.