Deregulation is flavour of the season, but caution needed in banking

Deregulation in the economy in general is a good thing. There is always a case for visiting regulations that have outlived their rationale and cramp business activity

In a year in which India has been hit with additional tariffs of 50 per cent on exports to the United States, you would not have expected India’s gross domestic product (GDP) growth projection to be revised upwards from 6.5 per cent in April to 6.8 per cent in October. Or the inflation rate to be revised downwards from 4.0 per cent to 2.6 per cent. 

Yet, that is what the Reserve Bank of India (RBI) did in its latest monetary policy statement earlier this month. The tariffs will indeed impact growth. However, since they kicked