Abstract

The caselet explains the trends in inflation in India and the impact of inflation on the economy as a whole. It explains the reasons for inflation and measures to be taken to control it. It even highlights the role of RBI in helping government to manage inflation.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Impact of inflation on the Indian economy
• Reasons for increasing inflation rates in India
• Measures taken by the Indian government (fiscal measures) to control inflation
• and Role of RBI (monetary measures) in managing inflation in India.

Keywords

Inflation, economy, population, infrastructure development, goods, services, products, primary articles, Government of India (GoI), Reserve Bank of India (RBI), commodities, CRR, bank rate, repo rate, credit policy