http://www.india ninflation-uncontrollable.com/

The author has very rightly pointed out the disproportionate increase in money supply as one of the principal causes of inflation.

What he has missed here though (with due respect to the author) is the impact of all the foreign money being pumped/dumped in India. This has not only led to an increase in buying power (of some though) but also contributed to the govt. printing local currency that can be exchanged for this foriegn currency. Add to that the multiplier effect of increase in money supply and we have a difficult situation in hand where on one hand the RBI is tinkering with the CRR to reduce the money supply and the deluge of foreign funds on the Indian shores, which help RBI to build up forex reserves.

The huge forex reserves should be put to use in the Infrastructure sector. It's about time these learned men agreed on to a proper use of these funds.