Tax buoyancy, growth may help reduce deficit, says Ashima Goyal

Ashima Goyal tells Joydeep Ghosh that the RBI will have to consider a number of factors, including fluctuating commodity prices and revival in investment cycle

In the past few weeks, the rupee has been falling and crude oil prices have been on the boil. ASHIMA GOYAL, professor, Indira Gandhi Institute of Development Research, Mumbai, and member of the Prime Minister’s Economic Advisory Council, tells Joydeep Ghosh the Reserve Bank of India (RBI) will have to consider a number of factors, including fluctuating commodity prices and revival in investment cycle, before taking a call on interest rates. Edited excerpts:    

India is facing the twin problem of rising crude oil prices and falling rupee. How do you think the current account deficit and fiscal deficit will