Recent views of RBI Governor clearly establish that inflation has to targeted on permanent basis. Changes only in monetary policy will not help. Monetary policy takes care of demand side only. Supply side has to be taken care by the administration and society. In India, we do not find enough competition in many businesses, specially the capital intensive ones. This hinders new ideas and research in business. There are plenty of SMEs in India, who languish at the same scale for years. There needs to be societal change for encouraging them to scale up.
Promoters themselves, bankers, consultants, Govt. and other stakeholders need to change themselves for this. Govt. can also help by offering certain services to private sector. Enough competition will bring down the prices by improvement in supplies of goods and services.
Promoters themselves, bankers, consultants, Govt. and other stakeholders need to change themselves for this. Govt. can also help by offering certain services to private sector. Enough competition will bring down the prices by improvement in supplies of goods and services.
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