For an economy whose recovery remains wobbly, a weak IP data under normal circumstances ought to have resulted in an easing monetary policy stance.
However, for India, the weak investment climate rather than tight monetary policy remains the culprit.
While the earlier corporate debt binge has come back to haunt investment in the form of rising NPA of the banks, the government's inability to take reforms forward at the desired pace have also impacted the business climate.
Recent developments indicate that there is now a question mark as to whether the government will be able to adopt the GST within its self imposed deadline of 1st April 2016. Even the land reforms bill faces tough road ahead.
Commentary
Reforms and not conducive monetary policy key to improvement in Indian economic activity
For an economy whose recovery remains wobbly, a weak IP data under normal circumstances ought to have resulted in an easing monetary policy stance. However, for India, the weak investment climate rather than tight moneta…
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