Theme T133 · Indian Economy

Inflation, monetary policy & the poor

2PYQs

1GS2

1GS3

2022–20242 distinct years

1asked 2024–26

Roadmap · step 35 of 171 · Stage 1: Foundations

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What UPSC asks

Questions ask why food inflation stays high and whether RBI's monetary policy can control it, and why the poor need inflation and unemployment managed beyond welfare schemes.

Prepare these

Inflation targeting framework (4±2%), MPC
Food inflation drivers: supply shocks, storage, perishables
Limits of monetary policy on supply-side inflation
Inflation as a tax on the poor

Answer writing

Explain why supply-side steps matter

Directive words in these PYQs: Comment (1), Discuss (1).

Linked themes

Comes back later in

Later themes that take this one further.

Step 75: Poverty: measurement, causes & alleviation Step 98: Agricultural marketing & supply chains: APMC, intermediaries Step 108: PDS & buffer stocks

Syllabus lines covered

GS2-L14 — Issues relating to poverty and hunger.
GS3-L1 — Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

All 2 PYQs, newest first

GS3202410 marks · 150 wordsGS3-ECO-03-M2024-Q02
What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation.
Report a typo
GS2202215 marks · 250 wordsGS2-GOV-06-M2022-Q16
Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of society. Discuss.
Report a typo