The Indian government employs various methods to regulate and control inflation in its economy. Some of the measures taken include:

• Monetary Policy: The central bank, Reserve Bank of India (RBI), uses monetary policy tools like changing the repo rate, reverse repo rate, and cash reserve ratio to control inflation.
• Fiscal Policy: The government uses fiscal measures like taxation policies, government spending, and borrowing to manage inflationary pressures.
• Supply-Side Measures: Enhancing agricultural productivity, promoting competition in markets, and implementing efficient distribution systems help control inflation by increasing the supply of essential goods.
• Exchange Rate Policy: A stable exchange rate can help control inflation by reducing the prices of imported goods and commodities.
• Regulating Prices: The government regulates the prices of essential commodities, fuel, and utilities to prevent excessive price hikes.
• Market Monitoring and Intervention: Regular monitoring of market behavior and intervention through necessary actions like imposing stock limits on essential commodities can help control inflation.

These measures collectively aim to stabilize prices and maintain a favorable inflation rate in the Indian economy.