The growth rate in the fourth quarter of fiscal 2019 was 2.2 percentage points lower than the growth rate clocked in the first quarter. Lending rates have not moved down in tandem with reductions in the policy rate. A well-functioning macro policy framework should be able to usually meet all four targets simultaneously, while satisfying the famous Tinbergen Rule that the number of policy targets should be equal to the number of policy instruments. The aspirational growth rate can be found in some of the recent strategy papers by NITI Aayog. India needs at least two more decades of rapid economic growth without economic instability to pull most citizens out of extreme poverty.

Source: Mint June 04, 2019 12:22 UTC