Inflation in its lowest value after June 2002. Is this rate of reduction good for economy?

If increase in inflation is proportionate to growth in GDP index, it is a welcome phenomena.

In a healthy economy, 12% to 15% growth in industries can be considered satisfactory. (By Growth, I mean the business growth, not artificially boosted share price.) 

For an investor, 15% percent growth will double his money in 5 years.

For providing enough liquidity to boost economy and to encourage investment in equities, the bank shall adopt 4% to 5% SDR and 6% to 7% SLR which will give the banks enough margins.

To achieve this, government shall exercise very strict control on the stock market in the listing parameters, pricing of IPO, and artificial running up of share prices, if necessary by prefixing the margins. Benefits to investors shall be in the form of bonus shares and dividends.

Had there been such controls, India would not have been a victim of this economic fiasco caused by unbridled economy in US, because, there is no major change in the fundamentals in most of the Indian industries; (except perhaps in the outsourcing industry), the boosted up capital was wiped out by the FIIs putting the interest of the local investors in jeopardy. Resultant panic pushed down the share prices and dried up liquidity forcing the industrialists to dump their business plans. The responsibility of bringing such a situation shall squarely lie on the Industrialists including the banking industry and the Government.     

The media and their so called analysts who provoke the investors with unrealistic valuations and untardy forecasts are also partially responsible for the economic pain and suffering of the of the retail investors.  The traders always are capable of fishing in troubled waters and most of them could have must have made fortunes out this.   

Having the damage done, at the least reduction of inflations should have reflected in reduction of prices of essential commodities, which would have given a boost to the economy. Government need to move in with strict action to controls unbridled greed of profiteering industrialists and the middle men who do not allow prices to go down.

Deflation due to limitation in money supply reduces the purchasing power, which in turn  will adversely affect the economy.   Government shall enforce strict measures to overcome such a situation, even at the risk of inflation going up moderately.

In an healthy economy, industry should grow in a progressive rate, inflation shall move up in proportion to the growth, and bank rates shall move down wards, to keep the liquidity in tact.   

Considering the consumer, the answer is 'yes' because the prices are coming down.