ManagementPolicy review: Banks with funds to emerge winners
India is clearly showing strong growth, as outlined by the RBI which stated that the output gap is narrowing with economy operating close to potential and raised its baseline projection for GDP growth in FY10 to 7.5 per cent from 6 per cent forecast in October 2009 in the monetary policy announced today.
Simultaneously, the WPI (wholesale price index) is up from 4.8 per cent in November 2009 to 7.3 per cent in December 2009 and therefore the central bank’s focus has shifted to controlling inflation from its earlier stance of nurturing growth as the economy emerged out of the credit crisis.