India's inflation in focus

Overview

The Indian authorities view inflation, rather than global financial or economic turbulence, as the major risk to India’s growth story. The Reserve Bank of India made that abundantly clear on 29 January when it left rates unchanged despite increasing fears of a US recession, emergency rate cuts by the Fed and global stock market gyrations. Given the series of state elections in 2008 and a national election due in 2009, the government also appears willing to make the inflation-growth...