Tightroping the growth

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will fuel inflation down the line.

So does this mean that we will be in a mild “stagflationary” period for a while? Unfortunately, we think the answer is yes. This is not a calamity in itself; growth will still be very respectable. Its just that our expectations have now become very elevated, and an 8% growth rate is seen as demeaning. The Survey, in almost all sections, lays out the constraints that keep us reined. Even if these are gradually removed, these are long-term measures; in the short run, we will have to live within more modest means. In the immediate future, one palliative, however mild, might be to consider our stance on the Rupee and have it help our goals instead of remain a hurdle.