Das highlighted certain potential growth drivers, which could give a significant push to growth. Some of these include prioritising food processing industries, tourism, e-commerce, start-ups and efforts to become a part of the global value chain.

"The Government is also focusing on infrastructure spending which will augment growth potential of the economy. States should also play an important role by enhancing capital expenditure which has high multiplier effect," he said, delivering a lecture at the St Stephen's College here on "Seven Ages of India's Monetary Policy".

Das said the RBI constantly updated its assessment of the economy based on incoming data and survey based forward looking information juxtaposed with model-based estimates for policy formulation. This approach helped the Bank to use the policy space opened up by the expected moderation in inflation and act early, recognising the imminent slowdown before it was confirmed by data subsequently.

"Monetary policy, however, has its own limits. Structural reforms and fiscal measures may have to be continued and further activated to provide a durable push to demand and boost growth," he said.

The Indian economy is projected to grow 5 per cent in the fiscal year due to end in March, its lowest growth rate in 11 years.

Image credit : UNI