Thus, it is clear that micro structural reforms undertaken over the years have enabled continuing productivity gains, particularly in the manufacturing sector, with enhanced access of Indian business to technology, increased competition, greater attention to research and development and other productivity enhancing activities. Widening and deepening of the financial sector, along with improved regulation and supervision, has also contributed to improvement in productivity.
An important challenge for the monetary policy authority is to judge the durability of the recent upsurge in growth.