No free lunch.

"Over 2022-23, India's growth will average 7 percent, the strongest among the largest economies, contributing 28 percent and 22 percent to Asian and global growth, Morgan Stanley said in a report." ET. "Despite repeated pressures from 'fancy economists', intelligentsia, freeloaders, the government was fiscally prudent and knew the dangers that uncontrolled inflation can wreak on Indian economy and public. It repeatedly prioritised very careful spending and targeted stimulus only to those sections that desperately required it." Very true. On 12 May 2020, Prime Minister Narendra Modi said, "The Covid-19 pandemic has brought an opportunity for India to be self-reliant for which we have announced a Rs 20 lac crore (Rs 20 trillion) package which is 10% of GDP." ET. But, "New stimulus measures unveiled by Finance Minister Nirmala Sitharaman...will cost Rs 40,000 crore (Rs 400 billion), taking the actual fiscal impact of all the steps announced over the last few days to Rs 1.50 lakh crore (Rs 1.50 trillion) or 0.75 percent of the GDP, a report said." ET on 17 May, 2020. "Emerging markets (EMs) which stimulated most aggressively got no payoff in a faster recovery, owing in part to the downsides of overindulging. India was not among the biggest spenders, which tended to suffer higher inflation, higher interest rates and currency depreciation, at least partly cancelling out the sugar high of stimulus," wrote Ruchir Sharma. However, India is likely to be much more affected by what the developed economies do. "(US) Federal Reserve Chair Jerome Powell... emphasized the importance of getting inflation down now before the public gets too used to higher prices." CNBC. "Markets widely expect the rate-setting Federal Open Market Committee to enact a third consecutive 0.75 percentage points increase this month." The probability has risen to 86%. The European Central Bank (ECB) "lifted all its key rates by three-quarters of a percentage point and warned it was likely to raise rates again later this year." BBC. "Euro area inflation is expected to be 9.1% in August, up from 8.9% in July, according to Eurostat." "After roughly doubling its balance sheet to $9 trillion after the pandemic, the Fed began unloading some of the Treasuries and mortgage-backed securities it holds in June at a pace of $47.5 billion. It has announced this month that it is ramping up the pace of quantitative- tightening to $95 billion." Reuters. QT could add another 75 basis points. "India's exports have taken a knock with demand crashing in several developed world economies," and "Many exporters say their factories are running at 25-50% capacity or have reduced the number of shifts to one from three earlier due to muted demand from the US and Europe." ET. "India's foreign exchange reserves fell to their lowest in over 23 months on likely dollar sales by the country's central bank to stem the fall in the local currency. The reserves fell over $7.9 billion to $553.1 billion as of September 2, data released by RBI showed." ET. Selling dollars to control inflation by strengthening the rupee will make exports more expensive and further increase trade deficit. India's current account deficit (CAD) will rise to $140 billion, or 3.9% of GDP, predicted Deutsche Bank. BS. Other EMs spent own currencies for stimulus. We didn't. We are spending dollars instead. 'Fancy economists' and intelligentsia may not be fools. There is no free lunch.