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 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.
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