How sustained 6.5% growth for the rest of the decade can be realistic

Growth beyond 6% can happen, but there are constraints on both fiscal and monetary policy, which must focus on reducing the current account deficit, the fiscal deficit and inflation, writes T N Ninan

As the new calendar year gets under way, commentators have switched their attention from the economic growth likely in the current fiscal year (the broad consensus being sub-7 per cent) to the next one. Realistic projections are important for anchoring the Budget, due to be presented in less than four weeks. This is particularly so because past forecasts, especially by government spokespersons, have been over the top — starting with the promise of double-digit growth made early and repeatedly in the Narendra Modi government’s first term. Even in the first year of the second term, 2019-20, the then chief economic