Inflation vs Growth

It is surprise that even prestigious News papers like Economic times talk about Inflation independent of growth. It is common knowledge that high speed growth nearing 10 % heats up the economy and leads to inflation in a country as vast as India hot spots develop in most unexpected quarters and it is impossible to anticipate and prevent. In fact being a free country many times such hotspots have to cool itself off. It may have been possible in decade earlier to import and quell the inflation. But now it is impossible as imported items actually cost much more. Importing by India itself will now flare up the international market price. Especially in the case of vegetables and cereals only a long term strategy can produce results. Small one time corrective actions actually lead to detrimental effect and only middle men benefit at loss to farmers. Unfortunately the agriculture is not under the perview of centre and states have to do a concerted effort to solve the problems. The states have to do this in unison else one state’s failure will cause shortage and price inflation as the practice of stopping the movement of agriculture products also is not a viable option. Centre can intervene such as in Wheat and Rice and some more staple items such as Bajra etc. In the case of vegetables etc. the states have to do proper planning and take responsibility.

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1 Comment (+add yours?)

  1. Whitny Smith
    Mar 05, 2011 @ 12:58:33

    It is very interesting for me to read that blog. Thank author for it. I like such topics and everything that is connected to them. I definitely want to read more soon.

    Whitny Smith
    mobile jammers

    Reply

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