Balancing Growth |
The Reserve Bank of India’s latest policy decision marks a subtle but important shift in the country’s economic management. By reducing the repo rate to 5.25 per cent after two consecutive pauses, the central bank is signalling that the time is right to lean a little more towards growth without abandoning caution. This is not an aggressive pivot; it is a carefully measured step that reflects both confidence and restraint. The upward revision of the GDP growth estimate to 7.3 per cent for the current financial year is arguably the most consequential part of the announcement.
It acknowledges what the data has already begun to show: the Indian economy is running faster than earlier assumed. The July-September quarter’s expansion of 8.2 per cent ~ far above the bank’s own projection ~ has clearly altered the macroeconomic landscape. Robust rural demand, a steady revival in urban consumption, and improving private investment........