Rajan also expressed hope that a stable government after the Lok Sabha elections will continue the broad fiscal policies of the current regime and India may finally get the Goods and Services Tax (GST), an ambitious indirect tax reform measure. "My belief is that we should be focused on getting our fundamentals right and that has been our focus ever since the summer of last year. One of the main aspects of our fundamentals is the inflation rate.
"If investors have a sense that inflation rate is going to come down, both domestic and international investors, they would be more prepared to take a bet on the rupee and that is essentially what we are focused on," Rajan said in an interview to CNBC.
On policy expectations after the general elections, Rajan said it would depend on which government comes in.
"My sense is if there is a stable coalition in power post-elections, no matter which persuasion it is, broad policies will continue," the Governor said. To a query on bad loans of banks, Rajan said their non-performing assets need to be brought down.
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