Bhubaneswar, 22nd May, 2016: Reserve Bank Governor Raghuram Rajan, addressing the gathering at Harekrushna Mahatab Memorial Lecture at Jaydev Bhawan on Saturday said,” Reforms have made India a better place to invest and attract foreign investments. As part of the reforms while Aadhaar and bankruptcy bills wil come soon.”
“The regulations should be for betterment of the industry and not to discourage entrepreneurs and suggested a system of self certification for the industries with some checks on the part of the authorities to prevent any misuse,” he informed.
“We have seen that while regulations are liberal in United Kingdom, it is very heavy in Italy. It is seen that the start ups in the UK grow faster than their Italian counterparts,” said Rajan promoting an easier set of regulations for small and medium enterprises in India.
Rajan said public sector banks have increased their credit to small and medium enterprises after RBI identified medium enterprises as priority sector and that he was optimistic about growth of start-ups if provided required facilities to grow.
The RBI governor appreciated the system of self certification for the industries. He, however, said the authorities should ensure that there is no misuse of it.
Affirming that the government needed to create a proper environment for the start ups, he said “though India has done away with the license raj, inspector raj continues to some extent”.