Policy Coordination — Mains Questions

Critically analyze the evolution of policy coordination between the Government and the Reserve Bank of India since economic liberalization. Discuss the institutional mechanisms in place and the persistent challenges.

The inflation targeting framework has significantly improved policy coordination in India, but it is not without its challenges. Elaborate, with specific reference to recent economic developments.

Discuss the implications of India's federal structure on the effectiveness of macroeconomic policy coordination. How can these challenges be addressed?