Just a month after a landslide election win India's new government finds itself having to take immediate action to fulfill a pledge to contain inflation.
With data this week showing wholesale price inflation at five-month highs, the government on Tuesday imposed restrictions on some farm commodities and ordered a crackdown on hording in a bid to contain rising food prices.
The steps are necessary to stop inflation from getting out of control, analysts say. The danger for Prime Minister Narendra Modi, they say, is to ensure the measures don't conflict with the long-term goal of boosting investment into a sluggish Indian economy.
"From a near-term perspective, the action is a necessary evil," said Vishnu Varanathan, a market economist at Mizuho Corporate Bank. "The export restrictions are a knee-jerk reaction to keep enough stocks on shore to ensure that food supply doesn't get squeezed."
"But it's not good for medium-term policy because barriers on exports become ad hoc and that's not the right kind of signal a pro-investment, pro-global trade government wants to send," he added.
Data on Monday showed India's wholesale price index rose to 6.01 percent on-year in May, from 5.20 percent in April, driven by a jump in onion and potato prices.