Originally posted by satsu_jin at 2010-7-15 08:07 AM
Nice GDP growth, congrats. What's the cause for the inflation?
The inflation was at 15% when 2010 started. The inflation is basically due to the government cut of subsidies on foods and other commodities and also on fuels. This was done to reduce the budget deficit due to massive subsidies available on food and other items. India can now only become costly, no way it will become cheap.