dearone4u_22
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- Jul 28, 2011
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This makes no sense, but then I'm not Indian. Food inflation is driven by supply and demand. You create new demand and more government debt with food subsidies. Where is the new supply of food coming from?? Sure, you can release grain from reserves, but that's a one time. What happens next year?
Growth never goes from 10% straight to -5% unless there's war. It stops at 7.5% and 5% along the way.
Coz of this decline is partially due damping of local demand whic in turn is due to high interest rates @10% per annum ( urs is 2%)... RBI i ahead of curve, it making ppl spend less and save more by offering more interest on saving and prepare for bad times due to global slowdown from which there is no running away, be it be india or china..
What can i say about our pds .... u only say is this good
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