Ukraine conflict likely to affect growth: RBI MPC member Jayanth Varma

Asia's third-largest economy is projected to grow 8.9 per cent in the fiscal year ending March 31, slower than previously anticipated 9.2 per cent, according to the recent government data.

Eminent economist Jayanth R Varma on Sunday said the Russia-Ukraine conflict is likely to have adverse effects on both economic growth as well as inflation and policy makers must remain alert and ready to respond rapidly to the emerging situation.

Varma, who is also a member of the Monetary Policy Committee (MPC) of the Reserve Bank, in an interview to PTI said inflation is higher than target, though it is within the tolerance band.

Listing challenges faced by the Indian economy, Varma said while the economy has yet to recover from the cyclical economic slowdown which began around three years