Bal­ance Growth and In­fla­tion

The Economic Times - - The Edit Page - S RAMAKRISHNASAYEE

Apro­pos ‘FM Tune in Sync with Ra­jan Stand on Tam­ing In­fla­tion, Re­viv­ing Growth’ (ET, May 28), FM Arun Jait­ley and RBI gover­nor Raghu­ram Ra­jan may be on the same page as far as macroe­co­nomic ob­jec­tives such as com­bat­ing in­fla­tion, achiev­ing growth, etc, are con­cerned, but one feels their ac­tions must com­ple­ment each other to keep prices low and achieve growth. So, if RBI low­ers the CRR or SLR to en­hance in­fra­struc­ture in­vest­ment, the govern­ment must en­sure that projects are com­pleted on time. Only the ac­cel­er­a­tion of real in­come (goods and ser­vices) can bring down in­fla­tion­ary pres­sure and achieve con­sid­er­able growth.

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