Progress on monsoons along with favourable base effect in 2HFY2017 continues to point towards RBI achieving its near 5 per cent inflation target by the year-end
The stress in the banking sector, which mirrors the stress in the corporate sector, has to be dealt with in order to revive credit growth.
Here is some background on the candidates seen as potential successors to Rajan at the RBI
Rajan said India's good economic fundamentals would allow it to overcome any 'sharp corrections' in global markets
RBI promises to take all necessary steps, including liquidity support
Imports dropped 13.16 per cent year-on-year
Rajan said the central bank has used up all its "space available" to cut interest rates
Anandabazar Patrika reported that Rajan would prefer to go back to the United States after his three-year term expires in early September
Lenders have reported a surge in their bad loans in the six months to March after an asset quality review ordered by the central bank.
India does not have a unified regulatory regime to counter Ponzi, or pyramid, schemes whose operators typically grab new deposits to meet their promise of guaranteed returns to existing savers, point out Manoj Kumar and Mayank Bhardwaj.
Like pharmaceutical companies globally - which used to enjoy a preferential exchange rate in Venezuela - Indian producers have been left badly stung by the collapse of the bolivar currency
The insolvency and bankruptcy code will strengthen the hands of lenders to recover outstanding debts by setting a deadline of 180 days for companies to pay or face liquidation
Three members will be representatives from the government, and three from the RBI.
The draft guidelines include a move to allow large industrial companies to buy up to 10 per cent stakes in new lenders
Infrastructure accounts for nearly 38 per cent of India's industrial output
Bankers back the new bankruptcy code, which would impose debt deadlines on failed firms and foresees up to five years in jail for debtors who conceal property or defraud creditors
Retail inflation has eased from double digits in 2013.
India, the bank's second biggest shareholder after China, is looking to borrow from the AIIB.
A strong showing will be vital to Narendra Modi's chances of a second term.