TIL Desk/Business/New Delhi/ Hinting at more steps to revive growth, Reserve Bank of India Governor Shaktikanta Das on Friday said that monetary policy alone cannot support growth and structural reforms and fiscal measures must continue for this purpose.
“Monetary policy, however, has its own limits. Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth,” he said while delivering a lecture at the St Stephen”s College here on “Seven Ages of India”s Monetary Policy”.
He said the government is focusing on infrastructure spending which will augment growth potential of the economy. States should also play an important role by enhancing capital expenditure, which has a high multiplier effect.
Among the most important fiscal measures the government has taken so far is the cut in corporate taxes, apart from a host of sectoral measures. With retail inflation touching 7.35 per cent in December, the highest in six years, the Governor allayed fears over the current spike in inflation, saying it is triggered due to food prices rise.
