The shape of the earnings growth trajectory this year is more critical than in an average year the so-called Goldilocks scenario for India, the ideal state in which all factors in an economic system are just right, depends on it.
“The task for central banks is to keep in mind growth and growth-related priorities even as equally looking at controlling inflation,” the minister said.
Varma, Professor of Finance and Accounting at Indian Institute of Management, Ahmedabad, says that the spike in inflation due to a rise in vegetable prices lasts only a few months when monetary policy is conducted appropriately. Excerpts: