3 min read.Updated: 22 Apr 2016, 04:05 AM ISTIra Dugal
Growth below potential now, leaving room for more monetary easing, but output gap is closing, says paper
Mumbai: What is the potential growth rate of the Indian economy? The question, the answer to which is key to policy decisions such as how far interest rates should be lowered, has always been an actively debated one. The latest estimate of the country’s potential growth rate comes from a working paper released by the Reserve Bank of India (RBI) on Thursday that pegs it at below 7%, having decelerated from levels of around 8% in 2003-08.