Need to tackle headline inflation

We see the inflation is growing at a geometrical pace, with growth rate plummeting giv9ng rise to the suspicion Indian economy would hit double-dip in a matter of months. The Food price inflation @ 9.13%, fuel price index @ 14.69%, Primary articles index @ 11.43%, with a dozen times alteration of interest rates in 18 months to combat head line inflation which hovered around 9.78%, the highest in the calendar year has turned our 11th Plan projection at the terminal year coming down disastrously to 7.2 to 7.5%. The headline inflation is twice the Central Bank’s comfort level. RBI has reached the tip end of its tightening cycle. Yet it has not been able to combat inflation. Slow growth continues. Unused capacity is around 50% which may go up. Government inertia in tackling economic issues on a war footing has taken a beat seat with the Government at the receiving end and all the energy is spent on salvaging the lost credibility. Dr Manmohan Singh was an outstanding Finance Minister of India, because he took decisive decision producing crucial results which shut the mouths of his critics. Today, he follows the policy of Narasihma Rao that taking “no important decisive action appropriately will solve the problem automatically”. 2 G no decision, CWG delayed action, Cash-for-vote-scam wavering decision, 2G letter of Finance Minister reviewing the process of 2 G licensing, he did not see the letter.