IMF's Subramanian on India Economy Outlook

The video discusses the Reserve Bank of India's (RBI) stance on inflation, highlighting that it is largely driven by supply-side factors, particularly food prices, which are influenced by global events like the war in Ukraine. The RBI is expected to maintain its current policy unless drastic global changes occur. The video also covers the impact of interest rates on demand and investment in India, noting that consumption is less sensitive to interest rates compared to investment. Additionally, it explores the potential effects of China's deflation on global economies and the role of global central banks, particularly the Federal Reserve, in shaping RBI's policy decisions.

What role does food price volatility play in the RBI's decision-making process?

How might deflation in China affect the Indian Central Bank's policies?

What are the implications of the RBI's current stance on interest rates for future economic growth?