Cleaner windshields: A more responsive IIP will help policymakers hugely

Policymaking in India, the old saw goes, is a bit like driving a car with a dirty windshield and a broken rear-view mirror. Not only does the current set of data not tell you what is going on, even data for the past gets revised with such a lag policymakers are caught completely off guard—FY11 GDP growth numbers, for instance, began with an 8.6% estimate, got revised down to 8.5% and finally ended up with a 9.3% number, and that is what made the Reserve Bank of India’s monetary policy for that year look remarkably loose in retrospect.

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