The growing food prices have made government to think about tightening the monetary policy, so that sky rocketing food prices could be controlled. Though, government's step will certainly slow down the pace of the economic growth.

India's food inflation has already crossed 17.5% mark, which is one of the most concerning matter for the Congress-led government these days.

On this matter, the RBI deputy governor, Mrs. Usha Thorat said, "Clearly now going forward, the accommodative monetary stance will have to be reassessed. When RBI reviewed its second quarter monetary policy in October, the country was facing a fragile economic recovery, which prompted the central bank to continue with the easy stance."

OECD Secretary general, Angel Gurria has shown similar concerns over the inflation while arguing upon the government's decision to tighten the monetary policy.

The wholesale price index (WPI) inflation in October was 1.34 per cent as compared with 0.50 per cent one month earlier. While domestic prices of food articles raised by
17.47 per cent from 15.58 per cent a week earlier, due to a sharp increase in vegetable prices.

Although denying for any major effect of the Dubai crisis on the Indian economy, Mrs. Thorat admitted that the Dubai crisis can have some impact on remittances and affect those parts of the country that receive inflows from the Gulf nation in larger quantity.