Indian economy contracted 7.3 percent in the last fiscal - its first full-year contraction in the past four decades.
This is even as the fourth quarter saw the economy grow by 1.6 percent aided by high government expenditure and some uptick in the manufacturing sector.
Meanwhile, sky-rocketing fuel prices and higher food prices have led India's retail inflation race to 6.3 percent in May, breaching the upper limit of the RBI's inflation target.
So, where is the economy headed from here? Is it time for the government to further loosen its purse strings to finance more welfare schemes? To discuss this, Latha Venkatesh spoke to Principal Economic Adviser Sanjeev Sanyal.Watch the video for more.