If the rise in the CPI since the beginning of the QQE last April stems from the cost-push inflation triggered by the rise in import prices on the back of the weaker yen, then the real GDP should have declined and an unemployment rate should have risen. We should have been in stagflation by now.
However, there are projects that are now in place to revive the industry with reforms underway with support from the Indian Government, the European Union and the Asian Development Bank. These reforms will assist those who will displaced by the reforms and address the land tenure issue and raise farm productivity.