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Let me start by defining what Inflation is: the rate at which the general level of prices for goods & services soar which means the purchasing power of the country surges. Generally, a country tries to maintain single digit inflation rate, but perhaps a low inflation rate can also be a downside for a country. To control inflation, the central bank does tighten the monetary policy e.g. increase in the interest rate. An increase in the interest rate has a side effect of curtailing the investment & employment leading to a slump in growth. India saw a sharp downfall in growth for about 5 years after higher interest rates during 1995-96. The tussle always subsists between Inflation & Growth in any country, especially developing economies. There exists one school of thought which says that higher interest rates contain inflation & another school of thought says that lower interest rates lead to better growth. Bone of contention!! For instance, recently RBI went for 2 subsequent hikes of interest rate with a hike of 75 bps on repo & reverse repo rate in August and October to contain the inflation. But being a little pragmatic, as expressed earlier, higher interest rates can lead to unemployment, so a person would prefer a low paying job with 12% of inflation rather than no job. So I put myself in the second school of thought, higher growth with less interest rate & inflation. But is this possible? India uses CPI (Consumer Price Index) for the calculation of Inflation rate. With over a billion of people, quality food for all seems to be a distant dream. This is predominantly because of higher food prices which a common man finds it difficult to pay. So containing food inflation is the first step towards curbing the inflation in our country. There are two strategies to curtail food inflation keeping the interest rates at bay. This will indeed check the sustainability of the agricultural sector as India is primarily dependent on agriculture. 1. Enhancing the productivity of farms 2. Improved Public Distribution System (PDS)