Today, I propose to move away from the minutiae of the policy review and share with you my thoughts on the underlying macroeconomics and the unfolding of expectations for the period ahead. I propose to structure my address by beginning with an overview of domestic and global macroeconomic developments that conditioned our assessment and response on July 31.
My approach will be to compare the current situation with that prevailing in April 2007 i.e., at the time of the Annual Policy Statement, in order to highlight the changes that have taken place within the Indian economy but more perceptibly, in the international environment.