The framework for a stability-oriented monetary policy has its fiscal equivalent in the Stability and Growth Pact. It was implemented in order to make sure monetary stability is not counteracted by fiscal leniency. The Pact itself is both sound and flexible. The current unfavourable debt dynamics in the wake of slow growth bode ill for the single currency.
The most disturbing fact is that the income inequality as commonly measured by consumption expenditure (Gini coefficient) has increased in India from 32.9 in 1993 to 36.2 in 2004 (Ali, I. and J. Zhuang: 2007). This made “inclusive growth” the focal point of growth strategy and major concern for the policymakers in India.