There was widespread disappointment among financial markets after RBI held firm on policy rates, and repeatedly underscored the primacy of managing inflation and inflation expectations as part of its mandate. Equities sold off, the rupee weakened and fears rose the currency could weaken further in the coming days. But as unpopular as Tuesday&rsquo;s decision was, I believe it was the right one.

Unpopular but appropriate: Sajjid Chinoy

Business Standard

It&rsquo;s worrying to see (annual) GDP (gross domestic product) growth below six per cent. And, equally worrying to see retail core inflation remain close to 10 per cent.

Don't put the cart before the horse

Is the tide finally turning? After the slew of bad news and disappointments in 2011, a marked sense of optimism has enveloped markets in 2012. Equity markets have rallied sharply this year and, after prolonged weakness, the rupee has bounced-back a staggering seven per cent over the last month.

Sajjid Chinoy: Is the rupee flattering to deceive?

The writing has been on the wall for a while. So, it was not surprising to see the government forecast for growth this year to be a shade below seven per cent. But just because the numbers weren&rsquo;t unexpected, it doesn&rsquo;t make these any more palatable.

Will policymakers learn from the growth setback?

There has been little to cheer about on the macro front for months. Last week&rsquo;s negative industrial production, or IP, print was the latest reminder that industry has ground to a halt and growth seems reconciled to the five to six per cent range. Unlike China, however, slowing growth has not resulted in slowing inflation. Wholesale inflation remains stubbornly above seven per cent and retail inflation is in double digits.

Sajjid Chinoy: The rupee and the J curve

The discussion on India&rsquo;s growth slowdown and investment slump typically vacillates between fact and conjecture. First, the facts. Investment-led growth is the only sustainable growth driver in a supply-constrained economy like India. A huge private capex surge underpinned India&rsquo;s nine per cent growth in the mid-2000s.

Sajjid Chinoy: The wrong battle on investment

I would contend that the upcoming Budget will be one of the most important policy pronouncements of this government since it came to power in 2004. The FY13 Budget was always going to be a test of the government&rsquo;s resolve to return to active policy-making after the events of the last year. But, as if the stakes weren&rsquo;t high enough already, last week&rsquo;s election results have upped the ante.

Sajjid Chinoy