India’s growth acceleration in the period 2003–08 was, in part, aided by globalization, but that we were impacted by the global financial crisis was also a consequence of globalization. That is a telling demonstration of the costs and benefits of globalization. We have to learn to manage globalization in such a way as to minimize the costs and maximize the benefits.
For policy makers, this means taking into account the implication of developments around the world into our own policy calculus. For example, in the Reserve Bank, in making our monetary policy, our regulatory policy and our external sector policies, we have to reckon with policies of other countries as well as global developments.