The RBI is trying to do its bit by a token cut of 25 basis points in repo rates. Frankly, RBI has very limited options in front of them. Even in near future we may see RBI cutting interest rates by another 25 basis points.
I also agree with the RBI view of an upside risk to inflation, especially if the currency continues to depreciate, which will have an impact on oil prices.
The solution to India's growth lies in the doors of the government which requires speedy reforms and project clearances, fiscal prudence and more liberalisation to attract FDI investments into the country. The fiscal and monetary authorities need to work in tandem for the country to get back on the growth path.
V Balakrishnan
Member of the Board, Infosys & Head of Infosys BPO, Finacle and India business unit
