The Reserve Bank is focused on making sure that the fiscal stimulus to growth and renewed private sector investment proceed hand in hand and this augurs well for India's return to a high-growth path, a top banker said.
The strong commitment to managing the Government borrowing programme in a manner that is non-disruptive to markets and does not crowd out private sector investment should give confidence to market participants, ICICI Bank Managing Director and CEO Chanda Kochhar said.
The banker was commenting on the Reserve Bank's first-quarter review of its monetary policy announced on Tuesday.
The fact that two-thirds of the programme will be completed in the first-half of the year would support the ability of the system to meet the expected growth in credit offtake in the second-half, Kochhar said.
The RBI has noted that the signs of stability in the global economic environment, rightly concluding that these indicate an easing of the pace of deterioration and return to growth is some way away, she said.