Yet, the main challenge is posed by the developments in the real economy. It is here that we must exercise our ingenuity. The business environment must be made more conducive to private investment. And investment in infrastructures has to return to be high in the policy agenda.
If the cost of products and services is brought down leveraging technology, inflation also would come down. That would lead to a softer interest rate regime which would enable sustainable growth. Taking cue from examples of western hemisphere, India should try to become a knowledge economy to promote inclusive economic growth.