The ascendency of India as an economic world power

Inflation is a much dreaded word in third world countries. Indians also do not like it. Well, on paper, Indian inflation rate is around 4% and most countries would be happy with this rate. Even, the target of India’s central bank is to keep inflation within 5%. So, it can be easily assumed that inflation is not a big worry for Indian economy at this moment.

The only problem is that Indian government has artificially kept the price of oil lower than the international market. In other words, Indian government is providing a lot of subsidy for fuel. So, inflation rate is “suppressed”, according to India’s central bank.

India may have another problem soon- coping up with rising price of food items in international market. It does not sound good for Indian economy. Let us what happens in future.   

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