k.mohan chairman and chief economic adviser of the Economist advisory panel opined that Indian economy will be back on rails within two or three years.He attributed the present ills of banking to the changing phase of the global economy.Having integrated global economy, any development at any place in the world is bound to affect our financial sector as well.Small scale business units in the state will feel the impact of change in the economic policy of USA, he said Further he contended that Indian economy owes its strength to its agrarian sector and there has to be new inputs to impact a fresh lease of life into agricultural development if inflation has to be brought under control.
At present global level inflation is low but here the cost of food grains and other ingredients is exploding. unless this is brought under control inflation cannot be controlled. He said agricultural policy also needs a shift towards horticultural crops especially fruits and vegetables since we have enough food grains in storage.
Future banking will be without bank branches. Banking has been influenced by advancements in information and communication technology.Today we can carry a bank branch, whole range of shops, movie theaters and what not in a pocket device.Huge amounts are transferred from anywhere to everywhere without unlocking the cash chest.The payment and financial system is a collective responsibility of banks and financial institutions communication companies and technology providers.
High interest rates subdue growth in primary sectors and increased domestic consumption all have had adverse effects on Indian economy .Supporting private banks without ensuring efficiency in governance of public sector banks will work against society.Inflation can not be managed only by interest subsidy.Well thought strategies is the need of the hour,he added