Why our Inflation cannot be controlled through traditional tools of economics.

Right! The producers and consumers balance are heavily loaded against former. Especially in the agriculture sector. Which brings me to a different topic which I believe has to read in tandem to the discussed topic. India is moving more and more into consuming society. But unfortunately the inflated prices that do not reach the end producer because of the malpractices of the middle-man. This leads to the major disparity of income among the population and spiraling costs. 

by controlling money supplyt in the money market bty rbi

Sorry Folks, let me give a solution. Routinising problems of citizen rather than non-routine solution which spans 1.2 bn different non-routines is the way out. 1 solution symmetric to the nation at each point in time rather than 1.2 bn is the way out. Otherwise like Andreu says it can be very complex, out of even our consciousness of Dharma which lead to Freudian errors. Thanks all.

I shall state it this way, suppose there are 50 laborers producing 50 products and there are 50 Beuraucrats who demands from the same supply pool. Now we have 1/2 a product for each and we cannot have divisibility of products. So what is the solution. One try to outbid the other and inflation results. If we have only effective labor and lesser of non effective labor like beuraucracy or labor that cator to wastages then we won't have inflation spirals which we see the case in developed world who knew this early than others and took appropriate step to have lesser of beuraucracy and lesser wastages. Thanks all.

Good points, Cherian, main reason that inflation goes on unchecked is lacunae in our economic policies, which unmindful of our actual gross industrial plus economic development status relish in aping the developed countries without weighing any pros and cons. Our priorities are not appropriately set. Our first aim must be to make optimum use of resources with minimal wastage that could help in augmenting our GDP and also bridging the rich-poor divide. Malaise of ever augmenting corruption must also be checked and controlled by formulating appropriate policies. 

We need to achieve a decent level of self sustainability particularly in the field of agriculture, sciences, technology, rural and industrial development. Apart from that, we need to focus on improvement of education, communication, logistics and distribution channels. 

Optimal utilization and mobilization of our key resources (including the human resource) is the key rather than always looking for FDI in all our endeavors for all our development needs.

Nice point,   India is n’t developed enough to be called a developing nation.
                         I think supply side factors and mismanagement add to this. The price difference between what the producer gets and what the final consumer pays, even for necessities are so huge. 
Also with the government changing every five years, long term planning is not effective.

Vinoy is right, we run our nation and our economy on Metaphysical terms which is our fiefdom. But Metaphysics cannot achieve what science can achieve faster. Directing our think tanks away from fixation to metaphysics to science leads to reducing the dimensions one need to handle in producing better quality of life say from 1 million to just 2. Thanks.

To Andreu, I didn't say that. To catch a prey one need the right traps. One need not use wrong methods to meet ones ends. Thanks.

I would like to give a practical example. To drive from Kalamazoo, Michigan to Detroit takes 50 minutes which is a distance of 120 miles or say 200 Km. To drive from Kochi to Trivandrum which is similar distance takes 5 hours. So to get a work done in Trivandrum one need to spend around say 5000 rupees for your room in TVM then the petrol bills for 5 hours then all the metaphysical activities which might last for many days which runs up a huge bill on 'non-routine' activities at the point of action to get work functional. 
If in developed nation one can work till afternoon or late into afternoon go to a place in 50 minutes take 1 or 2 hours to finish your work and get back b6 7 in the night without much extra consumption which is optimal.

This anomaly in underdeveloped which is former and developed which is the case of latter lead to a light years of difference in 'inflation management'. 
Where in the former one need to waste energy on unnecessary labor which will demand more consumption and in the latter only labor optimal for economy restrict consumption at optimal levels restricting price spirals. Thanks.

Pot-holed roads with excessively laden vehicles can not be good transport. India is  suffering most from poor planning and deliveries, not economics as the resources and consumers both exist.

Thanks Sir for the post. 

As for Mr. Andrew's question I understand, It is not that economic growth leads to non sustainability. It is just that the awareness among the general public in terms of their demands are catered to by government and politicians for electoral reforms. Economics and electoral demands are like former lovers. They always keep a tab on the other but can never come to terms completely. 

Especially in a country like India where the deep insight into economic issues that require major professional insight is minimal. 

My explanation for the above statement follows this: The social knowledge  of the country is palpable and hence the use of traditional tools used in more socially aware societies are often boomer-angers. The large disparity of income and standards of the living in our population however forces the hand of the government of the day to invest largely in issues that do not yield results ion the short run. That is a major strain on the government especially in this hard times, but nevertheless cannot be ignored for reasons of the future and propriety.

There are are many other issues that makes economic policy making (a very complex en devour in itself) in a country as complex as India very arduous. Hence it is next to impossible to use textbook tools of economics in our economy effectively. A large dose of improvisation is required.

Cherian Sir, Is my reading on your post a fair reading? If not do plug the leaks. Also do come forward with more factors that makes India such a complex economy. It can be enlightening for a good number of us who are keen on understanding the economy further. 

So, you're stating that economical growth leads to a growth of complexity that is non sustainable?