The recent RBI rate cut of 25 basis points is a very small measure to revive the flagging economy in India. Considering the food price inflation is 10 percent or so, nevertheless the money people would borrow will not be for food consumption but for house purchases, vehicles (scooters or cars), college tuition fees, injecting into family enterprises and cottage industries, into business. Here the RBI must take a broader view and meet the peoples' demands for improving standards of living. I believe it will not substantially add to inflation, rather improving standards will encourage people to plan families of manageable sizes and thereby even higher standards of living, that has been the result of studies in for example Japan.
The next bold move the RBI Guvnor must make is to reduce the rate by anything down to 6 percent, that will encourage widespread growth in the economy, it is my considered opinion.