Business Standard

Govt must cut import duty rates to combat inflation

Our government need not merely wait for the global commodity prices to drop but take active measures to supplement the actions of the monetary authorities

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TNC Rajagopalan
Not surprisingly, inflation has surged, consumption has faltered, and the Indian rupee has weakened. The RBI has already started raising the interest rates and sucking out excess liquidity in the system. The government should now step up and consider how tariff reductions can address the growing inflation concerns.

By all accounts, inflation in India is not due to overheating of the domestic economy or any sudden spurt in demand but due to global factors such as high commodity prices caused by supply disruptions and liquidity overhang. So, it is difficult to say whether the actions of our monetary authorities alone will
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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