RBI May Ease Rates Further: Chief Economic Advisor
Subramanian also said the government is committed to making sure that the taxation is not an extra burden for foreign investments of all kinds.
On ease of doing business, he said, "There are also issues like land laws, labour laws and reforms have been happening on those fronts.
"We will have to wait for the World Bank to measure how these efforts have helped in terms of ranking. Besides, the real measure will be seen in terms of actual investments that would flow in."
On January 15, the RBI had cut the policy rate by 25bps a few weeks ahead of its regular monetary policy meeting, which is scheduled to be held on February 3.
RBI Governor Raghuram Rajan lowered the benchmark repurchase rate to 7.75 per cent from 8 per cent, the first reduction since May 2013.
The RBI rate cut follows decline in inflation as well as the commitment of the government to stick to the fiscal deficit target of 4.1 per cent of the GDP in the current financial year.
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