Facing economic shock time for strategy not fallacy

By Dhurjati Mukherjee The outlook for the Indian economy in the current fiscal sadly does not appear quite encouraging, despite growing 7.8% in January-March quarter of the last fiscal. The Reserve Bank of India left the repo rate unchanged at 5.25% but reduced its growth forecast for FY27 and raised its inflation projections. It even signalled the threat could broaden economy-wide beyond fuel and commodities, if supply-side pressures persist. While higher oil prices and disrupted supply chains have already started feeding in costs, the Monetary Policy Committee (MPC) has preferred to wait for more clarity on the duration and intensity…