Montek Singh Ahluwalia

ears ago, when I was finance secretary, I made this entry in my diary: “If you can’t feed them onions, give them French shallots.” It was an observation that came to mind while shopping at Delhi’s Khan Market for shoe-laces. My wife Isher casually remarked that if I couldn’t get the right one for my shoes, then I might as well buy expensive designer rope and make do. Luckily, K.K. Lee (the famous shoe shop) had just the pair I wanted and so I didn’t have to resort to rope tricks. I remembered the incident when my friend Sharad Pawar called on me last fortnight to discuss food inflation and the skyrocketing prices of tomatoes. “Sharadji, when people are prosperous they don’t mind paying a few extra rupees for their veggies. In fact, they appreciate it. Inflation reflects prosperity and higher purchasing power,” I explained. “Why, I paid Rs 100 more for my eggs than the grocer demanded. And an additional Rs 200 I doled out to the parking lot attendant.”  Predictably, Pawarsaab warmed up to my line of reasoning. “Montekji, I entirely agree with you. Money, like blood, should circulate. And when dil maange more, then you have to pay more,” he said with rare conviction.

Earlier, unthinkingly, I had advised Pawar to launch a campaign against consumption of onions. But after reading the entry in my diary and Isher’s take on laces, I saw things in a different perspective. I realised that ours being a growing economy, people suddenly have far more disposable incomes. In fact, I feel the day is not far when villagers will switch from puris to pizzas and own at least two cellphones (one for each ear). Interestingly, so seized was I with thoughts of the future that I even went into a reverie of sorts. And in my mind’s eye I could see the humble kisan in his crumpled white khadi sipping a Bloody Mary and tucking into sushi at 360 degrees (the fine restaurant at the Oberoi). That’s what I would call inclusive growth! That apart, I would have loved to let my mind wander but Pawar jolted me back to mundane realities by saying that milk prices have also gone up. “See Sharadji, don’t bother about such trivial things,” I was quick to react. “Milk prices have gone up because many people in rural India who used to produce milk for the market have upped personal consumption because of improvement in their incomes.” The agriculture minister mulled over what I said and finally drew up his own conclusion. “Montekji, what you mean is that supply is not meeting demand and when people are willing to pay more why charge them less.” This, I reckon, was his Sherlock Holmes moment and after weeks I saw Pawar beaming. “That’s the point,” I said. “Inflation is linked to people earning more. It’s a sure sign of prosperity. And if the economy continues to grow, then the present 18.32 per cent inflation could double or treble.”  Immediately, Pawar did some quick calculations on his cell. “If onions and tomatoes sell at Rs 150 a kg, it would mean higher income for kisans like me,” he said with a glint in his eye....

(As imagined by Ajith Pillai)