There are many who are dancing at the welcome tunes post the announcement of economic stimulus package by the central government of India. The most enticing thing for some of them is the potential the stimulus package has to stimulate many markets. The timing of the announcement is also important and so are the beneficiaries.

At a time when the country is talking terrorism and have seen apex tension in neighbouring countries such as Pakistan, Srilanka and Bangladesh due to terrorism, and the world is also pushed to walls by the recessionary sentiment, the timing becomes all the more important. To hit the nadir, the elections are round the corner. The sentiment improvement tool – the economic stimulus package- is expected to work for the government.

The economic stimulus will not only create jobs in the economy, but also is expected to reduce the prices and thereby inflation, by a cut in CENVAT. At a time when the crude oil prices are hovering at USD 40 per barrel, way below its all time high, the stimulus package is expected to really add boost to the fight against inflation. But take a breath it may not be as simple as it appears to be. The central bankers are also keen on cutting rates. The rate cuts however will increase the supply of money in the market and boost the economic growth process and an obvious outcome is inflation. If the weapons offer conflicting outcomes what makes the planning authorities use them together.

It is the economic growth and development that matters and not the factors such as inflation, for time being at least. But overlooking the inflation and the money's worth is something no person can afford ignore for a long time. When the policymakers are upbeat about the package, the common man however may not be enthusiastic about what the government is doing about the economy.

But the Roti, Kapada aur Makan remains the issue for half of India's population. Keep aside the sudden spurt in the ranking 'terrorism' have got on the election agenda, but the basic necessities remain a challenge for the nation. The stimulus may push the Sensex upward for a short while but the real challenge lives in pushing upward the extent of true productive employment in the economy and think beyond the obvious to ensure that the things will remain in place for the common man.