RBI Governor Raghuram Rajan on Tuesday said that he connected "very well" with Union Finance Minister Arun Jaitley. He said, "People try to emphasise differences, rather than the large areas of commonality. My relationship with Finance Minister Arun Jaitley is of the highest order since he moved into office."



Identifying the adverse international environment as the key reason to sluggish private investment, RBI Governor Raghuram Rajan said that it was affecting domestic demand and insisted that China's slowdown is bad news.

"Private investment is the key concern while public sector is picking up fast. Happy with inflation path as of now," said Rajan in an exclusive interview to India Today's Karan Thapar on television show To The Point.

Expressing satisfaction in Centre's management to keep a check on inflation, he said that it is moderate and that it was global prices that added to food inflation. According to Rajan, the new GDP series is different from old GDP series which is attempting to do things better.

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Rajan explained that the new GDP series is different from the previous, it doesn't take into account the inflation rate.



He said that the Centre is trying to maintain the quality of spending, and long-term sustainable growth was vital. According to the RBI governor, industrialists are accustomed to difficult environment, and steady reforms are on the way.

"Investors have to be risk takers. Rapid enforcement of rules are vital," said Rajan endorsing Prime Minister Narendra Modi's pitch.