Inflation is an economic phenomenon which adversely affects the economy if not controlled to some limit. Recently there is a pear in Indian economy of rising inflation rate which requires. To be controlled and for that the government has taken the following steps (at the time).

i. It targeted the limit of revenue Account deficit below 5 percent of GDT

ii. Increase and develop industrial production to raise supply according to the demands.

iii. To increase industrial production, government liberalised laws related to and reduced prices of necessary raw materials and services.

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iv. Too-grain is a factor, responsible for the rise of inflation in India, to fulfill its demand, various measures like import of wheat, oil seeds, opening market selling of India Food Corporation’s stock of wheat and rice, regulating process etc. are taken in recent times.

To check and curtail black market, laws have been made stringent.

All these steps are necessary in the proper direction and according to the demand of time (In India, Inflation Rate at that time was about 3.7%)