Co-founder & Managing Director, Marketnomix 

Rajan Govil

Co-founder & Managing Director

Marketnomix 

Macroeconomics

<p>Recent monetary policy and fiscal policy announcements have not been encouraging, but in fact confusing. RBI, as we shall see below, now has two monetary policy frameworks – inflation targeting and “monetary targeting’’ – that it wants to follow – and these could be contradictory creating confusion about monetary policy intent. The RBI’s policy quandary has to an extent been driven by the poor quality of the fiscal adjustment that the government has undertaken. The Indian government’s fiscal consolidation efforts thus far have been an accounting mirage. The political and the monetary authorities will need to work together to frame appropriate and coordinated policies to ward off the emerging risks to the economy.</p>

Recent monetary policy and fiscal policy announcements have not been encouraging, but in fact confusing. RBI, as we shall see below, now has two monetary policy frameworks – inflation targeting and “monetary targeting’’ – that it wants to follow – and these could be contradictory creating confusion about monetary policy intent. The RBI’s policy quandary has to an extent been driven by the poor quality of the fiscal adjustment that the government has undertaken. The Indian government’s fiscal consolidation efforts thus far have been an accounting mirage. The political and the monetary authorities will need to work together to frame appropriate and coordinated policies to ward off the emerging risks to the economy.

Adani Ports & Special Economic Zone (ADSEZ IN)

Mahindra & Mahindra Fin Services Ltd. (MMFS IN)

Schneider Electric Infrastructure (SCHN IN)

Cholamandalam Investment and Finance (CIFC IN)

ICICI Prudential Life Insurance (IPRU IN)

Global Economic Woes Mask India's Policy Confusion