MPC member expresses 'little more' optimism about economy

Says concerns remain as demand is disproportionately dependent on household spending; expects 4-5% inflation

RBI MPC member Jayanth R Varma on Tuesday said that he is ‘little more’ optimistic about India’s economic growth than a few months ago, though concerns remain as the country is now ‘disproportionately’ dependent on household spending with other components of demand encountering headwinds.

Varma further said that India should be willing to accept inflation between 4% and 5% for several quarters as the price of avoiding a growth shock.