States should also play an important role by enhancing capital expenditure which has high multiplier effect. Concluding Remarks 27. Monetary policy frameworks in India has thus evolved in line with the developments in theory and country practices, the changing nature of the economy and developments in financial markets.
Within the broad objectives, however, the relative emphasis on inflation, growth and financial stability has varied across monetary policy regimes. Although global experience with financial stability as an added policy objective is still unsettled, the Reserve Bank has always been giving due importance to financial stability since the enactment of the Preamble to the RBI Act.