Inflation In Control As Measures Working: FM

Inflation management under India's economic policy framework is not in the realm of fiscal policy, and therefore, of the budget. India's inflation targeting framework delegates this task to the Reserve Bank of India (RBI), which is expected to control inflation with the tools in the realm of monetary policy.

- Roshan Kishore

However, the interim budget has weighed in on controlling inflation. "Proactive inflation management has helped keep inflation within the policy band", the budget speech says, adding that "moderate inflation" has been among the key factors in people "getting empowered, equipped and enabled to pursue their aspirations".

What does this tell us about the government's attitude to inflation? The most important takeaway is that it realises that inflation is potentially the most disruptive economic force as far as a government's political fortunes are concerned, and therefore, too important to be left to an apolitical body.