We must, as a consequence, remain alert to risks that could threaten the sustainability of the expansion. Besides the chronic concern about a sharp spike in oil or natural gas prices, a number of risks can be identified. Of particular importance to monetary policy makers is the possibility that our stance could become improperly calibrated to evolving economic developments.
Debt flows are also calibrated into sovereign as well as corporate debt. •  The sovereign balance sheet has been protected from crisis inasmuch as India does not have foreign currency market borrowing and has limited dependence on foreign investors in respect of domestic currency debt.