New Delhi: With RBI opting for a 25 bps policy rate cut, ball is on the court of Central Government to deliver economic growth.
RBI has recommended government to enhance the private investments through policy reforms.
Although, monetary policy plays a significant part in the economy well being but policy framework needs to be top notch as well.
Although India’s economy is all set to grow at a rate of more than 7 per cent, a stockpile of bad corporate loans and slow factory output growth can have a negative impact.
There is no denying the fact that Narendra Modi needs to take leverage of his party’s presence in 18 of 29 states to make land reforms.
While the outlook for agriculture appears robust, this is not the case in industry and services.
Furthermore, the union budget has also been running a deficit at 81 percent of the full-year target in the first six months, which is not an encouraging sign to say the least.
With such important issues entrenched in the Indian economy at current juncture, RBI’s rate-cut is just a beginning, while the real impetus of economic growth is on the government.