What steps are taken by the Indian government to control the rising prices of essential commodities

Analyze the measures taken by the central government to control inflation.
The Indian government has taken various measures to control the rising prices of essential commodities. Here are some of the steps taken by the central government to control inflation:
  • The government has implemented a tight monetary policy that involves reducing the money supply in the economy to control inflation.
  • The government has also increased the repo rate, which is the rate at which commercial banks borrow money from the central bank, to decrease liquidity in the economy.
  • Additionally, the government has allowed imports of essential commodities to increase the supply and reduce the cost of items such as food and fuel.
  • The government has implemented policies to reduce wastage and improve supply chain management to ensure the efficient distribution of essential goods.
  • The government has also used buffer stocks of essential commodities to regulate prices and ensure availability during emergencies.
These measures have helped the government to control inflation and stabilize the prices of essential commodities. However, with the ever-changing economic scenario, the government must constantly monitor the market and adapt its policies accordingly to ensure that the prices of essential commodities do not rise unreasonably high.
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