Chennai: Economist and former Reserve Bank Governor Y Venugopal Reddy on Thursday said the worst part of the eurozone crisis was over for India and hoped that the economy would start improving from 2013 onwards.
"The worst part of negotiation is over. But in any case this will not be resolved in current calendar year, because elections are due in many countries", Reddy, said in his lecture on "Indian Economy: Review and Prospects" organised by IIT Madras, here.
He said he felt that the worst was over and things should start improving "only in 2013 onwards..".
On the challenges facing the country, he said the "demographic dividend" can become a "demographic disaster" if India's workforce were not skilled enough to compete globally.
He said many industries were competing globally." So, global competition requires global level of productivity and for global level of productivity, global level of skills is required. that can be a problem. that is one issue (India is facing)", the former IAS officer said.
Observing that India's education and health sector were "low" compared to global standards, he said "as we move along the next face of growth, the demands on education will be higher, demands on health will be higher. And therefore, in a way, the type of investments (required in these sectors) and type of public policy measures required will be challenging".
About "stocking" of black money in Swiss bank accounts, he said, "black money or criminal money is not entirely a stock. It is something both a stock and a flow. Suppose, if somebody is having a so called 'black money' and puts the money in the Swiss bank account. The money is not going to lie there. The same man, may go to Mauritius and take that out in some other name. So it is in circulation and it is not a stock".
"In my feeling, black money, except for it is kept in cash form, may be very small (in bank accounts). The so called big accounts which we are talking about billions of dollars may be in circulation, I will be surprised if anybody keeps (huge) cash in their swiss bank accounts", he said.