Editorial Board
India Needs More Than a Good Central Bank
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Investors pulling back from emerging markets have lately thought India a relatively safe bet. That’s partly because they’ve been impressed with Raghuram Rajan, the governor of the Reserve Bank of India. If the global financial turbulence persists, confidence in the central bank’s new boss may not be enough.
Like many other emerging-market economies, India badly needs reform. Rajan has called for a big change in the way the central bank does its job, but that’s just the start. The list of other vital reforms is long. Completing it won’t be easy, especially with an approaching general election (which will be contentious even by Indian standards).