What steps can be taken by the Centre to control inflation in the country

Explain the reasons behind the Centre's decision to stop the supply of rice and wheat to the States and suggest some measures that can help control inflation in the country.
To control inflation in the country, the Central government can take the following steps:
  • Tightening monetary policy such as increasing the repo rate
  • Reducing government expenditure
  • Encouraging foreign investment to stabilize the rupee rate
  • Increasing the supply of essential commodities such as food and fuel
  • Encouraging efficient distribution and reducing wastage
The Centre's decision to stop the supply of rice and wheat to the states is mainly due to the elevated prices of these commodities in the market. They wish to prevent hoarding by the states and ensure efficient distribution. This will help to curb inflation. To control inflation in the long term, measures such as increasing agricultural productivity, investing in infrastructure, ensuring fair distribution, and reducing corruption should be taken. Additionally, encouraging small and medium-sized enterprises and providing skill development opportunities can lead to greater employment opportunities and further stabilize the market.
Answered a year ago
Amrita Preparing for Civil Services