Almost one year down the line, circumstances have changed to a great extent, thus making the response from the central bank less obvious and straightforward compared with March 2020.

While some direct relief may be on the cards, it is unlikely to be huge, considering the government has its own set of macroeconomic challenges, in wake of COVID-19 pandemic.

While three new members appointed to the RBI's Monetary Policy Committee, the inflation target is due for review in the March 2021.

The real challenge is in getting the Indian banker, who has the resources, but is risk-averse to lend on fears of getting stuck in a new NPA cycle.

Many expected higher immediate government spending, but what we got was more akin to a second Budget with some structural reform announcements.

While the entire package is positive, the efficacy of some key measures will depend on the bank lending process, even as we await the Centre's fiscal bazooka.

The central bank will still have to monitor the response of lenders and ensure that credit flows in the economy to rebuild supply channels.

If the nine most afflicted states avail the 0.5% ‘escape clause’ as per the 15th FC recommendation report, they have a maximum fiscal space of around 1.55 lakh crore.

Given the long lags associated with Indian monetary policy and its efficacy, its unclear how much an emergency cut would help at the moment.

Significant downward revision in GDP growth during Q1 and Q2 of FY19 has been one of the key reasons for boosting GDP growth in the corresponding quarters of FY'20.

Sitharaman's budget came with no big-bang reforms, but the FY20(RE) and FY21(BE) numbers looked largely veracious, even if they came at the cost of a limited expansionary fiscal stimulus.

There are ten key macro elements that make up the budget document, which is otherwise often an arcane exercise.

The space to increase spending is limited. Depending on the final revenue shortfall numbers, we could be looking at a fiscal deficit figure of up to 4.1%

A positive move from the RBI, aimed at tackling the impediment surrounding transmission and helping the overall bond market, we may see more such operations in 2020.

There is a need for a flexibility in fiscal targets, or even ‘band-based targets’, till we see a full-fledged revival of the current economic slowdown.

Five states saw a significant pick-up in food inflation and general retail inflation in September. Excess rainfall in October will continue to push prices higher.

The RBI expects GDP to grow by at least 7% in both Q3 and Q4 respectively. Consumption will be key in driving this, but a revival in investment and exports will take longer. 

The October monetary policy review will likely throw up a rate cut, but how long can this cycle continue? 

Significant growth in the central bank's income, stemming from its open market operations, supported higher dividends to the government.

When will investment revival take place, given the bottlenecks in the transmission mechanism?