Indian politicians are usually obsessed with the GDP growth figures while campaigning with the objective of impressing the electorate. At times it does not matter whether the GDP growth number is 10. What matters most is the quality of the growth, more so when the poor population is involved. Politicians have the tendency of getting overly fixated with certain growth numbers instead of ensuring that the growth is strong and sustainable.

India should be focusing on macro stability by executing structural reforms to enhance the speed of growth. This is to say that the government should not feel excited when GDP growth figures budge a few percentage points. Instead, there should be focus on reform continuity and fiscal prudence. It seems like the central bank so often encounters a lone-battle in the attempt of fighting inflation. The concerns that the central bank has on inflation are fully justified because the high prices have been affecting low-income population given that there is no increase in their wages.

The population living in rural areas (which accounts to around 69%) usually gets the rough end of the stick compared to those in urban areas. The moment prices of food items remain high, it snatches the fruits of economic growth from underprivileged households. Vegetable and food inflation have continued to be impactful areas of inflation. If things operate as they are at the moment, volatile food inflation will still be key in dictating the course of inflation.

The government should not put excessive emphasis on GDP growth numbers with the objective of putting undue pressure on the country’s central bank in order to deviate from the inflation fight. Inflation worries the poor population more than the growth numbers.

Do you need an Original High Quality Academic Custom Essay?