Generally, weak external demand has led to some externally induced cyclical slowdown. However, as the global economy recovers, supply constraints are again expected to be binding. Against this backdrop of the unique features of our economy, let me turn to the five concerns that I want to raise.
First Concern: exit from accommodative monetary policy: growth vs. inflation While there is broad agreement that we need to exit from the present excessively accommodative monetary and fiscal policies, there is less agreement on when and how we should exit. There are incipient signs of recovery. Industrial production has picked up in the past couple of months, but export growth remains negative.