Route Map to IAS

Government is monitoring the price situation on a regular basis and containment of inflation remains high on its agenda. Anti-inflationary policies of the government include strict fiscal discipline, rationalization of duties of essential items, effective supply-demand management of essential commodities through liberal tariff and trade policies, and strengthening the public distribution system. Administrative measures have enabled States to put Stock Limits on wheat, rice, pulses, oilseeds/edible oils.

India has maintained a GDP growth of over 9 per cent in each of last three years, i.e. 2005-06, 2006-07 and 2007-08. In the current year information of GDP growth is available for only the first quarter. GDP growth of 7.9 per cent in first quarter of 2008-09, though low in terms of the growth record of last three years, is nonetheless impressive in view of the global uncertainties.

There has been some moderation in inflation in recent weeks from its peak of 12.91 per cent as on August 2, 2008 to 11.44 per cent (provisional) as on October 4, 2008. It is expected that the declining trend would continue in the coming months.