<b>Rathin Roy:</b> Fiscal policy and the India growth story

It is time we focused more on inclusive medium-term fiscal policy

In recent months many have commented on fiscal policy and the India growth story. I shall focus on two “big” growth questions that impact fiscal policy. A single budget can do little to address these, but, in my view, this is a more productive exercise than wittering on about how the budget can provide a growth stimulus.

First, the growth rate is falling. Why is growth falling?  Is consumption demand falling? Then prices should fall so demand increases.  But this is not happening — inflation is above the Reserve Bank of India’s target. If so, then the solution is for