UPSC CSE – SYLLABUS – GS – 3- Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

 Inflation & RBI policy

Because even though India’s economy is struggling to grow, the retail inflation rate — calculated using Consumer Price Index — had remained above RBI comfort zone for almost every month since last November.

Table 3, which is taken from RBI latest “Consumer Confidence Survey”, is quite revealing too as it shows that, in the year ahead, consumers are optimistic about every macroeconomic variable barring the issue of prices.

Way forward:

Source: ” Indian Express”.


Discuss how persistently high inflation undermined RBI’s effort to revive growth.