Therefore, the current issue to meet the demand for infrastructure finance by the banks arise from the bankable and commercially viable projects. Measures taken by the Reserve Bank of India 16. Several new initiatives have been initiated by the central government and the Reserve Bank in the recent years.
In saying this, I am of course aware that structural reforms can have mixed effects on growth and inflation, and in certain situations can impact negatively on both in the short-term.11 But empirical evidence is mixed12 and the balance of effects depends crucially on designing reform packages well.13 And indeed, many of the reforms that are on the table today – such as improving the business environment – have little disinflationary effects but can provide a strong boost to investment demand.14 Looking further ahead, stronger governance of structural reforms is also in the enlightened self-interest of all countries that want to see a deepening of our monetary union.