India's economy is not as strong as it was before, said YV Reddy, former RBI governor, adding that global uncertainties too were among some of the concerns.

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In an interview with CNBC-TV18, he said, “There are two things which are required — investments backed by savings and productivity."

On the inflation front, Reddy said, “I think the oil prices have been very benign. As far as food prices are concerned, I think overall, over a period, food inflation has been a constraint because the supply of food is now more or less inelastic and so is the demand.”

When asked about handling NBFC sector, he said, “You have to differentiate NBFC as a category so that their use should not be overlooked.”

“There are basically 2 areas — real estate and infrastructure. I think we have to identify them... so in a way, we have to look at the management system of those institutions which have been funding NBFCs,” he added.

First Published:Jun 10, 2019 8:59 AM IST