NEW DELHI, April 16 -- Here's a quiz question: What does India's refusal to unequivocally criticize Myanmar's military rule have to do with the Reserve Bank of India's (RBI) monetary policy? A bit perhaps. The road to meaningful monetary policy outcomes in India is occasionally paved with geopolitical decisions, with the circle of influence sometimes including improbable candidates like Myanmar. RBI's first monetary policy for 2021-22, presented on 7 April, has an understated flavour: its putative success will depend on how the external affairs ministry plays its hand.
The central bank's April monetary policy has projected a 10.5% gross domestic product (GDP) growth rate and a 5.1% inflation rate for 2021-22.
But given the unusual economi...