According to Chief Economic Advisor Krishnamurthy Venkata Subramanian, the removal of the three agriculture laws will have no impact on the overall reform process.
‘We must acknowledge that emotion is generally higher in farming, as it is in any democracy. However, I do not believe that this will have an impact on reforms in other areas, because that sentiment does not show in other areas for the same reason. So, I don’t think this will have an effect on reforms in other areas,’ Subramanian told on Thursday.
The Centre notified legislation on Wednesday to abolish three agriculture rules that have been the target of thousands of farmers’ protests for over a year.
Maintain the current monetary policy
The outgoing Chief Economic Advisor (CEA) indirectly endorsed the continuance of the existing monetary policy by expecting inflation to be range-bound.
‘There has been no hysteresis in the formal sector, which accounts for a large amount of activity.’ As a result, as demand recovers, they will be prepared to respond with increased supply, which, in turn, creates the circumstances for present inflation, which is range-bound, to continue going forward.
‘All of these considerations must be kept in mind, as well as the fact that the recovery must continue throughout the remainder of this year and into the future,’ he said.