mr. rangarajan addresses a special convocation of the indian institute of management address by the governor of the reserve bank of india, dr. c. rangarajan, at a special convocation held to confer upon him the honorary title of fellow of the indian institute of management at ahmedabad on 3 / 10 / 97. it gives me immense pleasure to be on the campus of the indian institute of management. i accept in all humility the award of the title “ fellow of the indian institute of management ”, ahmedabad. what can be a greater honour than the recognition by one ’ s own peers and family? i look back with immense satisfaction on the years that i spent on the campus here. those fourteen years marked the most productive period of my academic life. it is no mean task to have created here an institution of world - class excellence. all those who have been associated with iima can take legitimate pride in this achievement. this, however, makes the task of the current faculty members and students even harder. the race of excellence is a perpetual one and is, therefore, very demanding. i am sure that iima will always remain ahead. we are celebrating this year the golden jubilee of india ’ s independence. as a nation, we have accomplished much during this period. we have moved from the status of dependent country stricken at periodic intervals by famine and shortages to that of an independent nation with a high degree of stability. but the unfinished agenda is still long. our rate of growth, though high in relation to our own performance in the previous fifty years, has fallen short of our expectations and that of what certain other countries have been able to achieve. the miracle of east asian countries may to some extent have been dimmed by the recent crises in these countries. nevertheless, they have shown that it is possible for countries to grow at a sustained rate of 7 per cent or more for several decades. we need to set our goals high. we have over time created the wherewithal for progress. the real task today is to use these advantages for further growth. all of us are conditioned by history. history is a great teacher if we can draw appropriate lessons. the present is an extension of the past. we should not, however, become prisoners of the past. where changes are called for, we must be willing to make them. it is only by making such changes that a nation can progress. in the recent period we have made some basic changes in our approach to economic development

. in particular, determined emphasis on financial inclusion, financial literacy and credit counselling is appropriate and, therefore, should continue. in the external sector, the approach is towards fuller capital account convertibility, with focus on the enabling conditions for minimizing the risks and maximizing the benefits. are we reasonably confident that we can meet the challenges and maintain the present growth momentum with stability? there are grounds for optimism and these include democratic values, financial system stability, skilled manpower, technological capabilities, demographic dividends, large and growing entrepreneurial class, and penchant for innovation. the single most critical determining factor for the future would, by all accounts, be the improvements in governance that impacts personal security, property rights, business environment, and above all, a sense of fairness in the conduct of public policy. india and lse before concluding, i would like to recall that many distinguished indians benefited from education at the lse. the most prominent, of course, are dr. b. r. ambedkar, the architect of the indian constitution and an eminent economist, and mr. k. r. narayanan, a reputed diplomat and former president of india. in a way, india might have, perhaps, repaid its debt through dr. i. g. patel, who steered the lse, as its director, during a critical period. now, india and lse are entering a period of productive partnership, in which rbi is privileged to play an active role. let me thank all those assembled here for participating in the launch of the india observatory in the lse.