We have to live with 8-9% inflation which has main component cost from hydro carbon till solar and wind power replaces this source of energy.. RBI has tightened the monetary policy eight times in the past one year by about 200 basis points. Excessive tightening can act as deterrent to investment . If investment is low, it will lead to lower production which may in turn cause inflation in long run. To tame the inflation there should be structural changes such as strengthening the supply chain, boost agricultural production, developing a robust distribution net work,, moping up the money in rural area which is liquid cash due to real estate, bring legal transaction cheaper enabling the black money and surplus money brought into the measurable system, enhancing the Human resource development by focusing skill development to needed employability and by strengthening State administration syncronised with these objectives.
Quote of the dayCitizenship consists in the service of the country. -Jawaharlal Nehru
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