It is often said that the best anti poverty programme in India is maintenance of price stability since a large part of the work force is in the unorganised sector, with little or no hedge against inflation. In recent years, the strong growth environment coupled with increases in prices of oil and food items have required added emphasis on price stability, especially inflation expectations.
As articulated in the recent monetary policy statements of the RBI, the poor tend to reap the benefits of high growth with a time lag while rises in prices affect them instantly.