India Inflation ‘Very Alarming’: Kaushik Basu and Arvind Subramanian

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India Inflation ‘Very Alarming’: Kaushik Basu and Arvind Subramanian
Credit: © Reuters.

By Aditya Raghunath

Investing.com -- Kaushik Basu, former World Bank chief economist, and Arvind Subramanian, former Chief Economic Adviser to the Government of India, both flagged off worries over inflation at a virtual event organised by the Asia Society, India on Thursday.

Basu said that the inflationary situation in India is at a “very risky bend… where you need intertwining of monetary policy and fiscal policy.

“If you look at wholesale price inflation in India. Right now it is at a 30-year high,” he added.

Wholesale price-based inflation in India was 12.07% in June and retail inflation was at 6.26%, both above the targets that the Reserve Bank of India is comfortable with. Basu said, “I feel not enough is happening once again between the Treasury, the finance ministry and the central bank for the inflation.”

Subramanian agreed with Basu. He said, “I’m very worried about inflation. First of course, you know, it’s possible that we don’t know but the global situation itself could turn a little bit more inflationary in the next one or two years.”

He added “the pie [resources] is shrinking in India and conflicts over the pie are rising very sharply”.

“You see that in agriculture, you see that in the individual state saying no employment for people outside. All these are signs, both that the pie is shrinking,” Subramanian noted.

 

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  • Varun Naidu @Varun Naidu
    Useless stating the problem and then, offering no solution and also bringing in other remarks like " the pie is shrinking"... They're better off writing books and poems.
    Like 4
  • Vinay Ummadisingh @Vinay Ummadisingh
    SOLUTION?
    Like 0
    • Nandkumar Kandeswarath @Nandkumar Kandeswarath
      You read my mind.OTOH build more temples, get into more fights with neighbors. Then nobody will pay attention to petrol prices, inflation, unemployment, pandemics, so there won't be any problem to discuss.
      Like 3
    • Vinay Ummadisingh @Vinay Ummadisingh
      IT IS A GOOD SOLUTION THOUGH !!!!!
      Like 0
    • Vinay Ummadisingh @Vinay Ummadisingh
      @atinder singh  GOOD ONE!!!!
      Like 0
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