Srinivasan Umashankar
Nagpur, 10 February
With reference to the editorial, “Wise caution” (February 9), the government is doing well to stick to fiscal discipline on committed lines. The level of consumer price index inflation has stayed modest.
Because of the demonetisation exercise undertaken by the government there has been a strong inflow of retail deposits, so banks have been able to reduce the cost of procuring funds; even with a cut in incremental lending rates, the demand for credit is surprisingly muted.
With industries not keen for capacity-building, a piquant situation has emerged affecting growth considerably. Growth has to revive now; that can happen
