Why inflation stands in the way of India’s growth recovery
Even as growth risks recede, risks to inflation remain. This will complicate the task of the monetary policy committee (MPC) of the Reserve Bank of India (RBI) which meets this week to decide policy rates
The promise of a quick vaccine, India’s higher-than-expected gross domestic product (GDP) numbers for the Sep-ended quarter, and a booming stock market suggest that the risks to growth may be declining. But there is one big hurdle still: persistently high inflation. And it may well pose the biggest threat to the country’s nascent economic recovery.