If the government misses the target, inflationary consequences are likely in the near-term.

You’re kidding, right?? This is what the leaders are concerned with?

With relatively low inflation, steeply rising unemployment, a trade deficit with oil prices rising, the government should go on a spending spree building public housing to bring that cost down and stimulate the economy.

Why is gold a factor in inflation? I thought India had a floating exchange rate and sovereign fiat currency. Does it hold some significant foreign debt payable in gold? If not, it is only limited by available resources and labor in its ability to spend without driving inflation up.