I think it (the first quarter monetary policy review of 2012-13) is a highly conservative one, not one that would accelerate economic growth in the country.
Earlier, our country was faring well, compared to others. But today’s policy says the Budget estimates for inflation and gross domestic product growth were wrong.
It says inflation is higher than what the Budget had projected, while the gross domestic product growth is lower.
Hence, we are in a natural crisis and it is time for the central bank and the government to seriously look for a solution. Just being cautious and keeping the rates high would not help kick-start the economy.
The half-a-dozen reasons given by the Reserve Bank of India such as high fiscal deficit, high inflation, global slowdown and food-based inflation are turning out to be constants over the last two years.
When the Reserve Bank of India governor raised policy rates 13 times and inflation has not yet declined, they need to think out of the box.
Both policymakers and the Reserve Bank of India governor know each other well and have worked together in the past; they should know what is required to be done in Mumbai and Delhi.
We need greater pro-active attempts to expand the economy.
Good economics makes good politics and good politics makes good economics.
This is something all the parties involved — Reserve Bank of India , politicians, bureaucrats — should work towards to expand the economy.
I agree with the Reserve Bank of India that companies have lost pricing power, as consumers are facing high rates and demand has come down.
As far as real estate is concerned, lower rates and quicker approvals is the answer to all our problems.
Rajeev Talwar
Group Executive Director, DLF
