Why is it significant for the RBI MPC member Ashima Goyal to mention the impact of India's development on food inflation
RBI MPC member Ashima Goyal indicates that as India progresses, the issue of high food inflation is expected to reduce in severity.
- As India develops, there is an increase in agricultural productivity and infrastructure which can help stabilize food prices.
- Improved technology and practices in agriculture can boost food production, leading to increased supply and lower prices.
- Investments in irrigation systems and cold storage facilities can reduce post-harvest losses, thus curbing price volatility.
- Enhanced transportation networks can facilitate better distribution of food, reducing inefficiencies and price spikes.
- A reduction in food inflation can improve overall economic stability and contribute to lower inflation rates, benefiting the economy and consumers.
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a year ago