Quality of the country’s growth is improving with focus shifting from boosting cyclical growth through fiscal and monetary stimuli to ‘repairing the system and initiating structural reforms’, rating agency Crisil said.
“The biggest positive is that the policy focus hasn’t been based on populism, or on boosting cyclical growth through fiscal and monetary stimuli, but on improving the 'trend’ growth by repairing the system and initiating structural reforms wherever possible,” it said. It also noted that unlike China, the current growth in India is not supported by rampant credit creation. “Credit growth has averaged 9.8% in the last 2 years, almost in lockstep with 10.2% nominal GDP growth, underscoring sustainability,” it said.