Growth to pick up in coming quarters on govt capex, says MPC member Nagesh Kumar
Live MintMumbai: India’s economic growth is expected to pick up in the coming two quarters with an increase in government spending, even as private investment lags, according to Monetary Policy Committee member Nagesh Kumar. Kumar was one of the two external members of the Reserve Bank of India’s MPC who had voted for a 25-basis-point rate cut to help revive growth, which according to him has seen a serious decline and warrants immediate policy attention. Explaining this in detail, Kumar told Mint in an emailed interview that the sharp slowdown in the GDP growth to 5.4% in the second quarter ended September was transient. With the appointment of the new RBI Governor, a deputy governor in place of Michael Patra next month and new external members, the MPC’s next policy meeting in February will be keenly watched.