The record foodgrains production and buffer stocks in 2020– 21 provide food security and support to other sectors of the economy in the form of rural demand, employment and agricultural inputs and supplies, including for exports.
Second, the moderate pace of economic growth should also reduce inflationary pressures, influencing price and cost-setting behaviours. If oil prices moderate in the future, as currently expected by markets, the most likely outcome will be that inflation rates will fall below 2% in the course of 2003 and remain clearly at levels in line with price stability thereafter.