The first wake-up call for the United Progressive Alliance (UPA), keen to shower entitlements on an India it believed was not Shining, came in early 2007. Food grain prices started shooting up. Received wisdom places the start of the food price spiral a year later, but grains went up 15% and all foods by 11% in 2007.

A global supply contraction affected India as well, but our economic wizards chose to treat it through their monetary policy toolkit designed to control demand. The alarm met with a snooze response. Read More