RBI governor Dr. Raghuram Rajan has said that India needs to have "clever and sensible" regulations to create a business-friendly environment.Addressing the 58th annual general meeting of Indo-German Chamber of Commerce in Mumbai on Wednesday, Dr. Rajan added that the regulations must also be enforced to ensure that businesses have a chance to succeed and thereby promote growth and create jobs.Dr. Rajan said, the country needs a vibrant financial system which will finance people who want to create jobs and also those who want to pursue higher education. He also emphasized on the need to provide better education and skills to the working age population.The RBI governor further said that bringing down malnutrition among the population is one of the main concerns the country presently faces. He added that one of the bigger challenges for India is how to take advantage of its demographic dividends. Noting that a demographic dividend can turn into a demographic curse, Dr. Rajan said it is important to create jobs in order to reap the benefits of demographic dividend.