Do you prefer lower inflation or higher growth?

why is the inflation not coming down? According to me the main reasons arehugely surplus money available with the rual agri class (who are exempt from paying taxes), the higher middle class and traders, corporates and corrupt politicians owning companies who not only evade paying income tax but also vat and service tax which have led to consumtion demand.No state goverment or incometax departments are conducting proper raids to recover concealed incomes. we need a honest society effective tax recovery mechanisms and higher income tax slabs for the vulgar rich sections of society to bring down inflation and create moderate growth.There is no need to give precedance to inflation over growth as many viewers have suggested

Inflation can be tamed by other means than just interest rate hikes. Interest rates are known to be the 'blunt weapon' against inflation. Depending upon the stubbornness of the inflation or the reason for the inflation, interest rate hikes may have little or no impact. Here are 2 distinct ways how the RBI and govt can attack inflation without raising interest rates:
1. Let the rupee appreciate against the dollar. This will make imports cheaper (most importantly oil). Sufferers will be Export/IT cos, but why should they continue to benefit at the cost of common man?
2. Increase incentives for maximizing agricultural output. Increase MSP to farmers, remove big corporates from agriculture supply chain, establish and improve govt granaries and release mechanism, renew the PDS system for proper distribution.

It is now clear that inflation cannot be controlled by raising interest rates and thus controlling money supply. RBI probably goes by the book. Indian economy has always been run by a parallel universe of black marketing and unaccounted money that does not show in RBI's books. It is high time RBI realises there is more to understand in framing monetary policies while fiscal policies of the government are working at cross purposes. Probably RBI will stop at nothing before toppling the galloping economy out of its rails.

nice summary of Mr. Arjun Parthasarathy's article

I think growth shuold be on a higher priority scale. Ofcoarce high growth would lead to inflation,but the government should try to curb the inflation not by monetary policy measures, instead by increasing the productivity especially in aricultue sector so that the food inflation is under control

Inflation is bigger evil affecting all compared to slower growth rate.

I believe that what RBI is doing is right. After all the decade of growth (200 - 2010) has not had its impact on the major population that is rural and has to depend on government dole outs. Such things are not sustainable. As seen by the fact, the inflation is fuelled by the contribution of Food inflation which is clearly hurting both middle class and the poor and it is a no, no for any sort of government to either ignore it or try and falsify it.

The world is witnessing one of the worst financial crisis which are far more widespread than the earlier ones. Inequities are a major cause for unrests and we have witnessed several of them this very year. 'Occupy Wall Street' may not seem to affect us directly, but we all have seen the market turmoil and volatility as never before. As you have rightly pointed out, curbing inflation must be the prime objective as well as a priority for both Government and RBI. I only wish (If wishes were horses....) that the UPA government learns a trick or two from RBI to curb its spending spree and contain fiscal deficit to augment the efforts of RBI.

There is such hype going on regarding the growth rate of India. Let us ask at what cost? We are showing growth rate on increasing the depletion of the natural resources by mining mindlessly and exporting them to other countries. On the other side our power sector is showing a dismal performance along with no respite on the subsidy given to the farmers, many wonder who is benefiting from this as our agriculture production with relation to the population is not matching. This is very much revealed by the food price inflation. With respect to other infrastructural issues, it is a big question mark. So one wonder what is actually pushing our GDP up. Are we really growing or it is just another statistical hype, like valuing the current production under current prices and comparing apples with oranges.

Rural migration has significantly decreased in Bihar not only for remarkable growth story there, but also for anti-Bihari movement in Mumbai in particular and Maharastra in General

Yes inflation control is more important then growth.Growth looses its meaning if for same product we have to pay higher price.Growth could be looked with fixed prices as bench mark.