KOLKATA, India, Oct. 30 — NITI Aayog Vice Chairman Ashok Lahiri urged Indian policymakers to weigh output and employment alongside inflation, The Economic Times reported, as the Reserve Bank of India (RBI) maintains a tightening stance.
Lahiri spoke Friday at the Confederation of Indian Industry’s (CII) 19th Banking Colloquium in Kolkata. The Economic Times reported that he called for banks to help businesses find financing and investment opportunities. The outlet also said he linked below-par private investment to geopolitical uncertainty and argued West Bengal needed suitable land and infrastructure to attract industry.
The RBI’s Monetary Policy Committee (MPC) raised the policy repo rate by 25 basis points to 5.50% at its Oct. 5-7 meeting and shifted its stance to “calibrated tightening.” The committee said its next move could be another increase or a pause, depending on conditions.
The MPC projected real GDP growth of 7.1% for fiscal 2026-27, with consumer price inflation at 5.2%. For October-December, it forecast growth of 6.9% and inflation of 6.0%. The RBI cited deficient monsoon rains, El Niño conditions and high energy and commodity prices as sources of supply pressure. Its resolution said policy must guard against those pressures spreading into inflation expectations and firms’ pricing behavior.
In minutes published Oct. 21, MPC member Saugata Bhattacharya warned that rate adjustments made too quickly could hurt economic activity and capital flows tied to growth. The vote for the increase was unanimous, though two members preferred retaining a neutral policy stance.
The RBI’s next policy meeting is scheduled for Dec. 2-4.
