How Narendra Modi plans to tackle inflation: 7 top points

Written by FE Online | New Delhi | Updated: May 19 2014, 15:50pm hrs
Narendra ModiMinisterial-level coordination mechanism at the national/ regional level
In the run-up to the elections, the BJP top brass maintained that the problem of spiraling inflation is specifically on account of supply-side bottlenecks and that raising interest rates, while being ineffective in tackling core inflation (non-food, non-fuel inflation), only served to dampen a demand-led recovery. The BJPs hard stand against FDI in multi-brand retail notwithstanding, the recommendations include fostering competition by way of promoting retailing through the organised sector and cooperatives.

Key points

* Ministerial-level coordination mechanism at the national/ regional level

* Priority sector lending to agri-marketing activities

* APMC Act reform across the country, liberalisation of agri markets

* Time-bound development of agri marketing infra storage capacities in food deficit regions, cold chain, agro-processing

* Unbundling of FCI operations of procurement, storage and distribution

* Increase competition by promoting retailing by organised sector and cooperatives

* Setting up a price stabilisation fund