RBI MPC member Jayanth R. Varma has expressed cautious optimism about India’s economic growth, stating that he is ‘little more’ optimistic than a few months ago. However, he also highlighted concerns about the country’s dependency on household spending and weak external demand due to the sluggishness in the global economy. Varma emphasized the revival in private capital expenditure as still too tentative and muted. He suggested that India should be willing to accept inflation between 4% and 5% for several quarters to avoid a growth shock. The International Monetary Fund recently revised its growth projection for India upwards by 20 basis points to 6.3% in October. Varma noted that the outlook remains fragile as demand is disproportionately reliant on household spending.