RBI MPC Member Advocates Focus on Farm Productivity in NDA's Third Term

RBI's monetary policy committee member Ashima Goyal advises the NDA government, led by Prime Minister Narendra Modi, to prioritize farm productivity and supply chain improvements to stabilize food prices. She emphasizes the need for reforms that leverage technology and youth, along with expanding capacities in health, education, and infrastructure.

RBI's monetary policy committee member Ashima Goyal advises the Prime Minister Narendra Modi-led NDA government to prioritize farm productivity and supply chain improvements in its third term to stabilize food prices.

Goyal highlights the prospects for robust growth and falling inflation, given the stability of the current government, which she believes will enable better coordination between monetary and fiscal policies.

She stresses the importance of continuity and reforms that leverage technology and the youth. Moreover, she calls for capacity expansion in sectors like health, education, environment, courts, policing, and infrastructure.

Discussing retail inflation, Goyal notes that past policies have effectively controlled inflation while promoting growth. She argues for nominal interest rates to fall with inflation to keep real rates stable. Goyal also emphasizes the role of political stability in enabling long-term economic reforms.

She underscores the importance of coordination with states and coalition partners in achieving these objectives. The recent electoral success of the NDA coalition, supported by N Chandrababu Naidu's TDP and Nitish Kumar's JD(U), exemplifies effective political collaboration for development-focused governance.

(With inputs from agencies.)