A Combat With the Rising Inflation—Is India Ready?

The economic impact of inflation across the globe is building a furious roller coaster, and India may be next in line.

- YASH KALRA

Mitigating the adverse effects of inflation and ensuring sustainable economic development is a priority for good governance. Given India's diverse social and economic landscape, the country is particularly vulnerable to the turbulence caused by economic unrest.

While moderate inflation is considered healthy and indicative of decent economic growth, it is the unchecked rise in inflation that poses serious challenges. It disrupts the economy and has far-reaching consequences for businesses, MSMEs, individuals, and households. Continuous efforts to maintain and enhance structural reforms across industries and supply chains is the key to economic stability. A balanced mix of fiscal and monetary measures is essential to maintain equilibrium between demand and supply.

India is currently experiencing the profound economic and social implications of inflation. Purchasing power is gradually declining, household savings are shrinking, social inequality is widening, and businesses are facing cutthroat competition. Inflation control has become a critical concern. Despite the government's proactive approach to building a trillion-dollar economy, several additional measures are essential for achieving sustained and inclusive growth.

One crucial step is protecting the vulnerable segments of society. Policies like Direct Benefit Transfers must be implemented efficiently to avoid leakages. Streamlining the Public Distribution System will help elevate lower-income households and foster economic equality.