The potential cure for Inflation was actually with them. They only can intervene from the supply side and neutralize the demand – supply imbalance. But, either they did not know it, or were too pre-occupied otherwise, to act on Inflation.
In simpler terms, if ROCE > COC , capital asset creation takes place. Else,not.ROCE must be significantly higher to cover the RISKS involved.
There are many measures mentioned in the latest Budget, like creation of storage facilities. FM needs all praise for these. But, the respective Ministries must start implementing these measures quickly.
RBI, in my opinion, needs to be, therefore, lowering the Interest Rates reasonably steeply – even if it is not at the speed at which it raised them.