What measures has the Indian government taken to address inflation in the current year?
1 Answer
India’s response to inflation relies largely on keeping essential goods available and cushioning the effect of high prices on households. The specific steps can change with prices and harvest conditions, so the measures below describe ongoing policy tools rather than a verified list of new announcements made in 2026.
- Releasing food stocks: The government can sell wheat or rice from public stocks through the Open Market Sale Scheme to increase supply when market prices rise.
- Managing key food supplies: Buffer stocks and government procurement are used for some essentials, including pulses and onions. Authorities may also impose stock limits or adjust import and export rules to improve domestic availability.
- Supporting lower-income households: Free food grains under the Pradhan Mantri Garib Kalyan Anna Yojana are scheduled to continue for five years from January 2024, helping eligible households manage food costs.
- Monitoring retail prices: The Department of Consumer Affairs tracks prices of essential commodities, which can inform decisions such as releasing stocks or taking trade measures.
Interest rates are another major tool against inflation, but they are set by the Reserve Bank of India, not directly by the Union government. For a confirmed list of measures announced during 2026, the latest releases from the Ministries of Finance and Consumer Affairs are the best sources; commodity-specific actions can change quickly.