Global economy facing disruptions, India can't be decoupled: Rakesh Mohan

Country has to tailor its actions in response to international crises, says economist and former deputy governor of RBI

A repo rate of six per cent is "pretty normal" if the retail price inflation is expected to come down to four per cent in two years, said Rakesh Mohan, president of the Centre for Social and Economic Progress (CSEP) and member (part time) of the economic advisory council of the Prime Minister. The policy rate stands at 5.90 per cent. Mohan, a former deputy governor of the Reserve Bank of India, spoke to Indivjal Dhasmana about the global slowdown, its impact on India, the bad assets of public sector banks, the government’s production linked incentive schemes and other issues.