‘Reducing interest rates could create more asset bubbles’

The core issue is that the use of money is much less than the allocation. There is very little doubt that in contrast to private corporate systems or other kinds of governance, our public delivery system has become worse. The real challenge for India is to hold people responsible for non-delivery and to go back to examining the public institutional framework, a lot of which is inherited, pre-independence and obsolete. Look at Delhi. Where is the accountability between the plethora of agencies—the Central government (the urban development ministry), the local government, and the municipal corporation. We are yet to see a scheme where you can put the responsibility on one person or department. This is vital in a situation where the demand for goods and services is increasing so fast. The Central government should do nothing other than look after security and make broad policy and leave the rest to the states. We cannot have inclusive growth in the current structure of trickle down. Real inclusive growth would need much better governance and high accountability.