What are the various measures taken by the Government of India to check inflation
Discuss the steps taken by the Indian government to control inflation in the country.
- The Reserve Bank of India (RBI) has increased the repo rate, which is the rate at which banks borrow from the RBI, to reduce the money supply in the economy.
- The government has reduced subsidies on various products, including cooking gas, to reduce the fiscal deficit and control inflation.
- The government has also controlled the supply of essential commodities by releasing buffer stocks held by various agencies.
- The government has also imposed export restrictions on certain commodities, such as onions, to prevent shortages and control prices.
- The government has encouraged foreign investment in various sectors to increase the supply of goods and services and reduce prices.
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