RBI's surplus transfer isn't a silver bullet; govt shouldn't get complacent

Excitement in the markets may lull the government into wrongly believing that all the economy's woes are over and the problems have been fixed

Finance Minister Nirmala Sitharaman’s first big economic policy announcement last Friday evening, almost a month and a half after she had presented her first Budget on July 5, has been warmly greeted by the Bombay Stock Exchange. The Sensex, its benchmark index, went up by about 800 points on Monday. Of course, hopes of a resumption in US-China trade talks also buoyed the overall stock market sentiment, but you cannot really overlook the positive impact of Ms Sitharaman’s announcement on the Sensex that rallied by over 2 per cent. 

A bigger announcement was made on Monday evening. The Reserve Bank