Time For The Big Bang

Tamal Bandyopadhyay explains why the next credit policy should go beyond incremental change and cut interest rates sharply

Business Standard: What is your greatest concern?

Bimal Jalan: Growth.

Business Standard: How does the policy address this concern?

Bimal Jalan: Whatever the policy can do, it has done. We have given an assurance that credit availability will be maintained. We are prepared to reduce interest rates and we expect the inflation rate to be benign. We also expect the external reserve situation to be stable. Then the credit delivery system must be addressed. We have told banks to lend to new areas in agriculture and to the small scale industry.

Business Standard: Obviously, you don