The Inflation has been haunting the Indian economy in the year 2008 right from the beginning. The central bank i.e, Reserve Bank of India, has not been able to cut down the interest rates in line with the global trend, only because the inflation was continuing to hover in two digits till few months back.

Now with crude oil prices crashing, and all other industrial commodities also crashing, and a decent agricultural output in the last few months,  India is seeing the inflation going below the 5% for the first time in over 15 months. The central bank is expected to announce sharp cuts in bank lending rates in the coming weeks, because the Indian economy is also facing a sharp drop in its exports and for the first time it has gone into negative growth rate.

This has definitely caused concern for the authorities including the ruling government, because with general elections round the corner, they need to take all the steps possible to revive the economy. The ruling government has gone to the extent of cutting down the petrol and diesel prices sharply in the last few weeks, and with further cooling down of the crude oil prices, political experts say that there could be more oil price cuts in the offing. That could be a small bit of good news for the 100 billion Indians.