Will India's economic recovery be deflated by the rising inflation?

For most industrialized countries, the immediate worry is more about deflation than inflation, though many analysts expect that to change in the medium term. At the moment, inflation is the bigger worry in India. The challenge for the RBI now is to avoid withdrawing spending and interest rate support too soon -- before the economy is running on its own steam -- or keeping it going too long, which could cause inflation to soar. It does not seem that government leaders will take any strong steps to curb inflation immediately. More generally, officials appear to be adopting a watchful stance, while adopting some modest measures to lower inflationary fears.