The author is a former Governor, Reserve Bank of India.
Ubiquitous testing will likely be a worldwide phenomenon over the next year or two. If Indian businesses can respond to the challenge by quickly building capacity to produce relatively cheap testing kits, this could spark a boom in the biomedical industry.
This requires making the institution of MPC more enduring, not bypassing it. Decision on monetary policy actions based on voting by committee members, provision of inflation and growth forecasts in the resolution statement, and coordination of rate-setting and liquidity management, need to be adhered to.
It isn’t possible for India to replicate what developed countries have done, writes ex-RBI Governor as he flags key issues: more testing, the ‘bipolar’ economic policy and the banking challenge.