Investment is intact. Investment to GDP (ratio) is over 36 per cent. There is no indication that investment is slowing down. There are some indications that consumption in some products is slowing down. Therefore, we are giving a boost to consumption. And investment is already there... so between investment and consumption we hope that the growth story will continue.

• Last month you advised banks to increase lending towards consumption.

They have. And they have cut interest rates.

• And now do you see any cuts happening for the real estate sector?

That I cannot say.

• On the farm debt waiver. Don’t you think this will set a bad precedent?

See, when there is demand for debt relief nobody raises this question. When we do it, then immediately the criticism is that it sets a bad precedent. Please understand, debt relief is done only because we feel that the distress of the farmers demands a one-time debt relief. Farmers are honourable people. In normal years they will take loans and repay loans... it is only in extraordinary situations that the farmer finds himself in a position where he cannot repay loans.

When that distress accumulates or spreads to many parts of the country, there is a strong case for debt relief. We have given this debt relief... but that does not mean that every year there will be debt relief. So the question whether “it will it set a bad precedent” is wrong. Rajaji did it... Rajagopalachari did it in 1937. Therefore debt relief is well known in India. It has to be done from time to time. But that does not mean that if you do it once, it will set a bad precedent.

... contd.