Cost of living: Should India's tracker of retail inflation account for free food handouts under PMGKAY? - Isaac Centre for Public Policy

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Cost of living: Should India’s tracker of retail inflation account for free food handouts under PMGKAY?

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November 6, 2025

Prachi Mishra

Head and Director, ICPP

India’s massive free foodgrain scheme has eased the cost of living for more than half of all households, but it also raises a tricky question: Should the consumer price index be revised accordingly? Or should our most important statistics reflect conceptual clarity?

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