There will be some moderation next year. Still, I see the economy averaging a 7 percent plus growth over the next two three years.
These factors suggest the need for higher rates but, surprisingly, the bank avoided any explicit indications of the higher risk of demand-driven inflationary pressures.
These are impressive numbers. Underlying growth momentum still suggests that the central bank should continue with policy tightening.
Industrial activity may moderate this year but will still remain strong. Monetary tightening by the central bank has raised concerns about the growth outlook.
Cutting the deficit next year isn't impossible, but it's not going to be easy in the current political setting.
Infrastructure spending and investment currently underway should remain supportive of industrial performance.
India's economic reforms remain a story of incremental changes at a glacial pace.
