BANGALORE: According to PM Modi’s 'Make in India' campaign include, ease of doing business, focus on Public-Private partnerships, harnessing the potential of Democracy, Demography and Demand. Reserve Bank of India unexpectedly raised the policy rate by 0.25 per cent as it kept its focus on controlling inflation, which it felt would be above the expected levels in the current fiscal.

"The future policy stance will be influenced by the Reserve Bank's projections of inflation relative to the medium term objective, while being contingent on incoming data," said RBI, reports Economic Times.

Let’s have a look at the five essential takeaways from RBI’s monetary policy:

1. Inflation Target Risks

While cheering the recent data on declining inflation, RBI has cautioned that its medium-term target of 6 percent for January 2015 still faces upside risks. "Since June, headline inflation has ebbed to levels which are consistent with the desired near-term glide path of disinflation - 8 per cent by January 2015. The most heartening feature has been the steady decline in inflation excluding food and fuel, by a cumulative 111 basis points since January 2014, to a new low," RBI said.