Inflation has averaged below 5 per cent in the current decade so far, substantially lower than that of around 8 per cent in the preceding two and a half decades. Pre-emptive monetary and prudential measures have led to this welcome situation of a reduction in inflation and acceleration in growth while ensuring financial stability.
Indeed, a cross-country comparison of major EMEs that have adopted IT indicates that growth in India has been amongst the highest while inflation remains relatively low (Table 2). Amongst the sample of G-20 and major Asian countries, growth in India during 2000-2007 was the second highest after China.