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Trying to grow

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  • The next step should be to continue with financial sector reforms so that the lack of finance from abroad can be compensated by better functioning domestic markets. Making sure that existing projects in roads, bridges, etc, proceed at a fast pace, continuing with opening the capital account and avoiding panic reactions and policy mistakes are essential. In the next one year or two, when world GDP contracts or grows less slowly, there will no doubt be huge pressure on policymakers to provide protection to one lobby or another. It will be essential for the government and the RBI to keep the long-term interests of all sections of the Indian economy in mind and not give in to pressures that can hurt them.

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