The second argument is that Basel III standards will raise the cost of credit in India at a time when the credit intensity of our economic growth is going to increase. 30. My response to these arguments is that it would have been irresponsible on the part of the Reserve Bank to not implement Basel III.
With so much at stake, you will not be surprised to know that, over the years, many very smart people have applied the most sophisticated statistical and modeling tools available to try to better divine the economic future. But the results, unfortunately, have more often than not been underwhelming.